By Brazil Stock Guide – Mercado Livre (MELI34) remains the best-positioned marketplace in Brazil, but faces intensifying competition from Amazon (AMZN), Shopee (SE) and TikTok Shop (ByteDance, privately held) across five battlefronts, according to a new report from XP Investimentos. The study, authored by analysts Danniela Eiger, Laryssa Sumer and Pedro Caravina, maps rival strategies and shows where Mercado Livre’s edge may be narrowing.
Freight fight
XP highlights Mercado Livre’s logistics advantage, with faster delivery times and broad distribution. Amazon, however, is catching up on costs and speed, while Shopee leverages strategically located warehouses.
Ads arena
Advertising tools remain broadly similar across platforms. Amazon benefits from a more mature portfolio drawn from its global operations, while Mercado Livre continues to refine its products. Shopee and TikTok Shop lean more heavily on social commerce.
Cost war
TikTok Shop has pursued an aggressive subsidy strategy, charging sellers just 6% commission to lure new vendors. Mercado Livre and Amazon use more established models, with category-specific commissions and broader shipping options. Shopee maintains simpler, lower-friction terms.
Marketing offensive
Mercado Livre has scaled up marketing both offline — such as billboard campaigns with Neymar and Ronaldo — and online through digital coupons. The goal: reinforce brand leadership and consumer mindshare.
Category conflict
In apparel, beauty and consumer packaged goods, Mercado Livre has made upgrades since March 2025, including new landing pages and improved search filters. Amazon counters with features like “Subscribe & Save” in beauty and “More for Less” in CPG. TikTok Shop represents a clear threat in fashion and beauty, with strong traction among younger consumers.
The bigger picture
XP concludes that Mercado Livre remains Brazil’s marketplace leader, but competitive pressures are mounting. Amazon’s steady progress and TikTok Shop’s disruptive push in key categories could erode MELI’s edge. For investors, the battle underscores how Latin America’s e-commerce sector may consolidate, with market share gains hinging on logistics, costs and category appeal.
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