A union of giants: Magalu and Amazon become partners in sales and logistics.

This Monday morning, June 8th, will be different for the more than 8.4 million customers who access the Amazon website daily. Those searching for televisions, refrigerators, or running shoes will find products sold by Magalu – and delivered by Magalog , the group's transport company.

The agreement between the retail chain led by Frederico Trajano and the American platform is part of Magalu's new strategic cycle, which began this year and will run until 2031, and aims to accelerate the e-commerce sale of durable goods through new channels.

"Today, Brazil is a market where there isn't one dominant platform. You have several with significant audiences," Trajano tells NeoFeed .

"Brazil is starting to look a bit like China, where you have TikTok Shop, AliExpress, Pinduoduo. For us, the idea was to start listing on other platforms as well," adds the CEO of Magazine Luiza.

The union between the two brands gives an idea of the weight these giants have in the national retail market. According to BTG Pactual, Amazon represents about 20% of the Brazilian e-commerce market share — tied with Magalu itself when Asian platforms are excluded from the calculation.

In 12 months, Magazine Luiza delivered a total of approximately R$ 63 billion in sales across its platform, reinforcing the size of its inventory for operating outside its physical location.

Magalu's move reinforces the trend of traditional retail chains plugging their businesses into marketplaces. In October 2025, Grupo Casas Bahia announced a partnership with Mercado Livre, making home appliances, electronics, and furniture available on the platform.

In the balance sheet for the fourth quarter of 2025, sales on third-party marketplaces accounted for 45.5% of the group's total. In March of this year, the network led by Renato Franklin also announced its entry into Amazon.

This agreement between Amazon and Magalu takes reciprocity into account – a very important word, and one that Trajano emphasizes goes beyond the simple seller -marketplace relationship in partnerships of this type.

In Amazon's case, the most immediate trade-off is logistics. "Everything I sell on Amazon, I'll deliver using my logistics. They have an audience that I don't have, and I have an audience that they don't have," says Trajano.

In a second phase, planned for a later stage of the agreement, Magalog will begin making deliveries for Amazon as a whole.

Trajano estimates that about three-quarters of Magalu's sales on Amazon will come from consumers who don't visit the group's ecosystem. This indicates that the retail chain will expand its reach without cannibalizing its customers.

There are still other items in the memorandum of understanding (MoU) that cannot be made public at this time.

Magalog, in fact, is rapidly expanding as an independent business. In the earnings call for the first quarter of this year, Trajano revealed that the carrier's revenue from external clients grew 30% compared to the previous year.

With the postal service facing difficulties, Magalu sees an opportunity to become a benchmark in high-level logistics for third parties. And with delivery costs 60% to 70% cheaper than market alternatives.

No exclusivity

Amazon is the latest move in a sequence of Magalu's offerings that already included AliExpress, Livelo, and Itaú Shop. Itaú's marketplace alone, says Trajano, has already become a "billion-dollar-a-year business"—a figure that illustrates the potential of what lies ahead with a platform like Amazon in Brazil.

Trajano emphasizes that there is no exclusivity agreement with Amazon or any other partner. Other similar agreements are expected to be finalized in the future. "The focus is on expanding our dominance in the categories where we are leaders," says the CEO.

The strategy of listing 1P inventory on partner platforms is a very short-term growth lever – especially relevant at a time when Magalu's own e-commerce is facing headwinds.

In the first quarter of 2026, sales through the digital channel fell by 11% and the marketplace declined by 14.3%, while physical stores grew by 7%. The group consciously chose not to engage in the price war and free shipping offers waged by competitors.

Magalu's strategy with external partners is to sell more through channels where the contribution margin is positive, without entering into subsidy auctions.

"We are in talks with other platforms to list our 1P. We believe this will yield gains in the very short term. We have conducted in-depth and robust analyses and understand that we will have great opportunities by listing on these platforms with significant pricing , mix, and catalog intelligence," Trajano told Morgan Stanley analysts on the earnings call.

Own channel

While distributing its inventory to generalist marketplaces, Magalu is repositioning its own channel – a part of the strategic cycle that the market has not yet clearly seen.

Magalu's app and website will migrate to a model called "brand place." Trajano explains that this involves fewer products, more curation, a focus on brands where the group has a competitive advantage, higher price points, and a promise of a superior experience.

"Consumers don't trust buying certain products from some competitor websites because it's not their area of expertise, but it is ours," said the CEO.

There is also another layer to this repositioning: artificial intelligence. The proprietary channel is the AI-commerce laboratory. This purchase journey based on dialogue with agentic commerce is already yielding results for the business.

Lu's WhatsApp , launched in December 2025 in partnership with Meta, generated over 9 million conversations, achieved three times the conversion rate of the traditional app, a Net Promoter Score (NPS) of 85, and a record number of orders in April.

"We sold almost 5,000 World Cup sticker albums, 1,800 packs of beer, 1,500 diapers, and 1,100 pressure cookers in a completely agency-driven, end-to-end experience on WhatsApp," Trajano detailed in the call. "No competitor has anything similar, neither in Brazil nor in the world."

This start to the new strategic cycle comes at a challenging time for the group. In the first quarter of 2026, Magalu recorded an adjusted net loss of R$ 34 million, reversing the profit of R$ 11.2 million from the same period of the previous year.

Financial expenses grew 16.5% year-on-year, pressured by the Selic rate. MGLU3 shares fell more than 8% after the results. Even so, the group maintained its EBITDA margin at 7.8% - one of the highest for a first quarter in the company's history.

"This may be the last quarter in which we still have an unfavorable comparison to the CDI," the CEO stated.

With 1,245 stores in virtually every Brazilian state, a nationwide inventory, and leading brands in categories such as durable goods ( Magazine Luiza ), running and sports ( Netshoes ), beauty (Época Cosméticos), and games ( Kabum ), Magalu has the catalog depth and its own logistics to operate efficiently outside its home market.

"We are the largest seller in Brazil of white goods, brown goods, furniture, sporting goods, games, and beauty products. And we want to expand this leadership to wherever the consumer is shopping," said Trajano.

Amazon is the latest addition to this expansion strategy. And Magalu's CEO made it clear that it won't be the last.