Brazil’s Magazine Luiza Will Sell on Mercado Livre
Brazil · RETAIL
Key Facts
- —Announcement Magazine Luiza and Mercado Livre announced the tie-up on Wednesday 2 September 2026.
- —Scale About 27,000 products from Magalu’s own warehouses go onto the rival platform.
- —Brands Magazine Luiza, KaBuM! and Época Cosméticos, with Netshoes to follow.
- —Live already Sales started the same day through a Magalu store page on Mercado Livre.
- —Share reaction Magalu (MGLU3) rose as much as 13.2% by late morning, to 5.23 reais (US$1.01).
- —Why Magalu’s online sales fell 11.9% in the second quarter of 2026.
Magalu will now sell its own stock on the platform of the company beating it. The market liked the idea a great deal.
Magazine Luiza will sell its own products on Mercado Livre, its biggest rival in Brazilian e-commerce. The two companies announced the deal on Wednesday 2 September 2026.
About 27,000 products from Magalu’s warehouses went live on the platform the same day. The shares jumped as much as 13.2%.
What Magalu Is Actually Putting on the Platform
The 27,000 items come from Magalu’s own warehouses. They are not the goods sold by the independent sellers on its marketplace.
The range is furniture, white goods, televisions, computers, phones, games and cosmetics. It covers Magazine Luiza itself plus KaBuM!, a gaming and technology retailer, and Época Cosméticos.
Netshoes, the group’s sportswear site, is to be added later. Magalu also delivers the orders through Magalog, its own logistics arm.
Why Magalu Is Doing This
Magalu’s online business is shrinking. Second-quarter e-commerce sales fell 11.9% against a year earlier, with its own stock down 11.5% and the marketplace down 12.6%.
Its physical shops grew 10.3% over the same period. The group still posted a net loss of 72.5 million reais (US$14 million) on revenue of 8.90 billion reais.
Mercado Livre’s Brazilian business turned over about 185 billion reais in 2025. Magalu’s marketplace did 44.3 billion reais, third in the market.
So Magalu is renting an audience it cannot reach on its own. Its chief executive Frederico Trajano put it plainly: the Brazilian e-commerce audience is getting more and more scattered.
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What Mercado Livre Gets
Mercado Livre widens its range without buying a single item of stock. It also fills a real gap in its own business.
Fernando Yunes of Mercado Livre said the fit is complementary. His company grew up selling small items, he said, and its logistics were built around small items.
Heavy goods such as fridges and sofas are exactly what Magalu is good at moving. Magalu estimates three quarters of the buyers it reaches this way will be new to it.
The Terms Nobody Has Disclosed
Neither company has said what commission Magalu pays. Magalu says only that the terms resemble its Amazon agreement from June.
Trajano has described three tests any such deal must pass. It has to earn a positive contribution margin, beat paid advertising on return, and give something back operationally.
The third test is met because Magalog handles the deliveries. Prices stay the same across platforms and the arrangement is not exclusive.
This Is Not the First Such Deal
Magalu began selling on Amazon Brazil in June 2026, with more than 12,000 products. That deal covered the same brands, KaBuM! and Época Cosméticos among them.
It has sold through AliExpress since 2024. It also lists on Americanas, Itaú Shopping and Livelo.
Mercado Livre has an equivalent arrangement with Casas Bahia. That retailer is now in court-supervised recovery and closing shops, so Magalu may pick up some of the slack.
How the Shares Moved
Magalu closed 1 September at 4.62 reais (US$0.90), the worst performer in the Ibovespa that day. It opened higher on the news and kept climbing.
By 10.25 it was at 4.92 reais, up 6.5%. By 11.30 it had reached 5.23 reais (US$1.01), a gain of 13.2%.
The whole market was strong that morning, with the Ibovespa up about 3%. So the deal is not the only reason the stock rose.
Magalu is still down roughly 40% in 2026 even after the jump. Safra put a target of 6.00 reais on the shares.
It estimated the tie-up could add about 3 billion reais of annual sales.
What It Means for Shoppers
Buyers on Mercado Livre can now find Magalu’s electronics, appliances and cosmetics without leaving the site. Prices should match what Magalu charges on its own platform.
Deliveries come from Magalu’s warehouses and its own couriers. The practical change for a shopper is choice, not price.
Frequently Asked Questions
What exactly is Magalu selling on Mercado Livre?
About 27,000 products from its own warehouses, not goods from the sellers on its marketplace. The range covers furniture, white goods, televisions, computers, phones, games and cosmetics.
Which brands are included?
Magazine Luiza itself, the gaming and technology retailer KaBuM!, and Época Cosméticos. The sportswear site Netshoes is to be added later.
Has Magalu done this before?
Yes. It struck a similar deal with Amazon Brazil in June 2026, and with AliExpress in 2024.
What does Mercado Livre charge Magalu?
Neither company has disclosed the commercial terms. Magalu says only that they resemble the Amazon agreement.
Why would Magalu help a competitor?
Its own online sales are shrinking while Mercado Livre’s Brazilian business is roughly four times larger. Magalu also delivers the orders itself, so it earns logistics revenue back.
Connected Coverage
Sources: Company announcements of 2 September 2026; Magazine Luiza second-quarter 2026 results; Brazil Journal; NeoFeed; InfoMoney; Money Times; Poder360; Seu Dinheiro. Converted at 5.1570 reais to the dollar, the Banco Central PTAX selling rate for 1 September 2026.
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