Mercado Livre to monitor sale prices on competing websites

Mercado Livre has announced a caller argumentation for its Brazilian sellers that tin alteration marketplace dynamics successful Brazil. From the 23rd of October onward, the level volition commencement monitoring merchandise prices sold by sellers not lone connected its ain level but besides connected competing platforms specified arsenic Amazon and Shopee. The accusation was confirmed to EXAME.

This means that if Mercado Livre (Meli) detects that a seller is offering products astatine little prices connected different platforms, they volition beryllium notified and fixed a 3-day deadline to set the prices connected Meli. If the seller fails to bash so, they tin person the visibility of their merchandise reduced successful the level and suffer entree to promotional and selling tools.

This measurement is an evident effort by the institution to guarantee consumers find the champion offers straight connected its website, making the astir of its ascendant presumption successful Latin America’s e-commerce market.

To analysts astatine Itaú BBA, the determination is an assertive but intelligent effect to caller offenses by Amazon and Shopee successful the Brazilian market.

“This time, Meli is making bully usage of 1 of their astir almighty weapons: the platform's relevance and seller blocking”, they affirm successful a study published this Wednesday, the 22nd.

Analysts besides praised the juncture connected which the e-commerce elephantine utilized this letter. After all, a fewer sellers hazard losing point visibility connected Meli’s level during accrued enactment connected Black Friday and astatine the extremity of the year.

Possible risks successful investors’ radars

Some investors person raised concerns that the monitoring argumentation could pb to antitrust scrutiny. This happens chiefly due to the fact that Meli represents astir 40% of online wholesale successful Brazil, though its full marketplace stock successful retail is inactive modest, ranging from 5% to 6%.

To BBA analysts, Meli is not, successful fact, stopping sellers from operating connected different platforms, but simply making a prioritization strategy and offering ordering connected their ain level instead. Although it remains a captious dynamic to monitor, galore see this strategy, successful essence, a mode to heighten competitiveness connected their ain level without infringing connected contention rules.

The intensifying terms warfare successful e-commerce presses the margins of galore companies successful the sector. And Mercado Livre, much than anyone, knows that contention is tough, chiefly owed to giants specified arsenic Amazon and Shopee, making it seldom beneficial for profitability.

In this scenario, the maturation of the GMV (Gross Merchandise Volume) volition beryllium important to measure whether investments are starring to a higher marketplace share.

For the 3rd 4th of 2025, marketplace expectations constituent to Brazilian GMV maturation of astir 32% to 33% compared to the erstwhile year. Should Meli surpass these expectations —keeping EBIT supra US$700 cardinal —the terms of its shares is expected to emergence accordingly, affirms BBA.