Overview

• Amazon will waive Fulfillment by Amazon storage and shipping fees in Brazil until December 3, with sales commissions also waived for new sellers, effectively making onboarding free during the promotion.
• Sellers can qualify for benefits through January 31 by investing 3% of sales in ads, keeping at least 80% of units sold via FBA, and growing FBA sales 5% by November, with commission reimbursements capped at R$30,000.
• Amazon is offering financial support for sellers and assistance with migration to the Simples Nacional tax regime as part of the drive to expand its marketplace assortment.
• Shares of local competitors fell after the announcement, including Magazine Luiza down 3.65% on the Ibovespa and Mercado Livre down about 5% in New York on Wednesday, with Mercado Livre sliding 13% over two sessions for its steepest two‑day drop since last November.
• Analysts at XP and Itaú BBA label the move highly aggressive and expect intensified competition and near‑term margin pressure, noting Amazon’s recruitment of rival account managers and a reported plan to invest about US$25 billion in Brazil over three to five years.