Mercado Livre and Marketplaces in Brazil for Foreign Sellers
Paulo Wesley·
·3 min read
Mercado Livre is by far Brazil's largest marketplace. According to a BTG estimate cited by NeoFeed, it should hold about 39% of Brazilian e-commerce sales value in 2025 including Asian platforms, and about 47% without them. Shopee, Amazon and Magazine Luiza follow. A foreign seller can enter these channels in two ways: through international selling (cross-border) programs, shipping from abroad, or with a company and inventory in Brazil, which means faster delivery and better search placement.
Who's who in Brazilian marketplaces
| Marketplace | Estimated share | Profile |
|---|---|---|
| Mercado Livre | ~39% (with Asian platforms) to ~47% (without), according to BTG | Leader in almost every category, strong own logistics, Mercado Pago wallet |
| Shopee | ~14% to 15% | Low prices, strong in phones and fashion, many local and international sellers |
| Magazine Luiza (Magalu) | ~12% to 13% | Traditional Brazilian retailer with a marketplace |
| Amazon | ~11% to 12% | Growing, strong in books, electronics and home |
Sources: BTG (via NeoFeed) and UBS BB (via BP Money). Estimates vary by method and period, but the order is consistent: Mercado Livre leads by a wide margin. Platforms such as Shein, Temu and TikTok Shop have also gained ground.
How a foreign seller can get in
1. International selling (cross-border)
Mercado Livre has an international selling program, Global Selling, for sellers abroad to sell in the countries where the marketplace operates, including Brazil. Other platforms have similar programs. Advantages: no company needed in Brazil and the test is cheap. Disadvantages: longer delivery times and import taxes for the buyer, which reduce competitiveness. Check each program's eligibility rules and accepted categories.
2. Company and inventory in Brazil
With a Brazilian company, you sell as a local seller, issue a nota fiscal and can use the marketplace's logistics (such as Mercado Livre's fulfillment), which means fast delivery and better placement. It requires importing inventory, paying import taxes and running a local operation. See how to open a company in Brazil as a foreigner.
3. Local distributor or partner
A Brazilian company imports and resells your product on marketplaces. You gain speed and give up part of the margin and control.
Import taxes
Low-value international purchases have seen frequent changes: since 2024, import tax and ICMS rules for parcels have changed more than once, with different treatment for platforms registered in the Remessa Conforme program. Before calculating price and shipping, check the rules in force on the Federal Revenue website. For imports with a CNPJ (inventory), general import taxation rules apply.
What makes a listing sell in Brazil
- Reputation: on Mercado Livre, seller reputation (delays, cancellations, complaints) directly affects visibility.
- Fast and free shipping: delivery in 1 or 2 days, with free shipping above a threshold, has become the standard in many categories.
- Complete titles and specs, using the words Brazilians search for. See Brazilian Portuguese: why translation is not enough.
- Installments: most marketplaces offer installments; the cost is built into the commission or price. See installments in Brazil: why Brazilians pay in 10x.
- Quick answers to questions, in Portuguese. A question answered within minutes converts much better.
- Sponsored ads inside the marketplace, now an essential part of the strategy.
Marketplace or your own store?
| Marketplace | Own store | |
|---|---|---|
| Traffic | Comes built in | You must generate it |
| Cost | Commission per sale and ads | Platform, payments and marketing |
| Customer data | Limited | Yours |
| Brand | Less visible | Fully yours |
Most brands use both: marketplaces for volume and discovery, their own store for margin and relationships. To drive traffic to the store, see digital marketing in Brazil: the channels that work.
Summary
In Brazil, being on Mercado Livre is almost mandatory for sellers of physical goods, and Shopee, Amazon and Magalu widen the reach. Start with an international program to test and move to local inventory when volume justifies it. Reputation, fast shipping and support in Portuguese decide the result. If you want help choosing the path for your product, talk to BrazilDoor.
Frequently asked questions
What is the largest marketplace in Brazil?
Mercado Livre. According to a BTG estimate, it holds about 39% of Brazilian e-commerce sales value including Asian platforms, and about 47% without them.
Can a foreigner sell on Mercado Livre Brazil?
Yes, through Mercado Livre's international selling program (Global Selling), subject to eligibility rules, or with a Brazilian company selling as a local seller.
What taxes apply to products shipped from abroad?
Import tax and ICMS. The rules for low-value parcels have changed several times since 2024; check the rules in force on the Federal Revenue website.
Is it better to sell on a marketplace or in your own store?
They complement each other. Marketplaces bring traffic and volume; your own store gives margin, customer data and brand. Most companies use both.
Sources
About the author
Business consultant with a degree in Accounting, MBA in Finance (UFRJ) and certified financial market analyst. Since 2014 he has helped companies from more than 10 countries understand and enter the Brazilian market.
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