The news: Two major Brazilian ecommerce players, Magazine Luiza (Magalu) and Mercado Livre, are teaming up to bring roughly 27,000 products from Magazine Luiza, KaBuM!, and Época Cosméticos to Mercado Livre’s marketplace. Magalu will maintain control of fulfillment through its logistics arm, Magalog.

The scale of the enterprise is significant. Mercado Livre will account for nearly 40% of Brazil’s retail ecommerce sales this year, per our latest forecast, while Magazine Luiza will represent roughly 10%.

Why it matters: The deal is about more than market share. Brazil’s ecommerce landscape is becoming increasingly fragmented as marketplaces, retailers, social platforms, and other digital channels compete for consumers’ attention. Partnerships like this give companies another way to reach shoppers wherever they choose to browse and buy.

• For Magalu, the agreement opens access to Mercado Livre’s enormous audience while creating another channel for profitable growth.
• For Mercado Livre, it expands the platform’s assortment across important categories, including electronics, furniture, beauty, and gaming.

Implications for retailers and brands: The deal points to a broader shift toward “coopetition,” as retailers increasingly work with the same companies they compete against. For example, Casas Bahia began selling its products through Mercado Livre in Q4 2025.

“The next phase of Brazil’s ecommerce market may be defined by more than which platform captures the most share,” said Matteo Ceurvels, EMARKETER principal analyst for Latin America and Spain. “As shopping journeys fragment across channels, success will increasingly depend on which companies build the strongest connections across commerce, media, payments, and logistics—and are willing to collaborate with competitors when it expands their reach.”