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MercadoLibre Expands Free Shipping in Brazil to Counter Rising Competition

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MercadoLibre, Latin America’s leading e-commerce platform, announced on Friday a significant expansion of its free shipping policy in Brazil, its largest and most profitable market. The move comes as competition intensifies with rivals like Amazon, Shopee, and emerging players such as Temu gaining traction in the region.

Effective immediately, purchases of 19 reais ($3.40) or more will qualify for free shipping, a sharp reduction from the previous minimum threshold of 79 reais ($14.15). According to Fernando Yunes, head of MercadoLibre’s e-commerce operations in Brazil, “practically the entire site will have free shipping from now on.” This aggressive change aims to boost sales volume across a wider range of products, particularly lower-priced items where competitors have been gaining market share.

Brazil accounts for over 50% of MercadoLibre’s total e-commerce revenue, making the market critical for its overall financial performance. The decision to absorb the financial impact of expanded free shipping underscores the company’s commitment to defending its market leadership. However, Yunes declined to provide specific estimates regarding the cost of the initiative.

The move follows earlier cuts to shipping fees for sellers on the platform, with discounts of up to 40% implemented since late May. Analysts at Itau BBA noted that these changes are strategically targeting product segments where Shopee has been increasingly successful, particularly in lower-priced, high-turnover categories.

While the expanded free shipping is expected to be costly in the short term, MercadoLibre is betting that higher transaction volumes and stronger customer loyalty will offset the immediate financial burden. The company’s long-standing investments in logistics infrastructure, including its proprietary delivery network, provide it with greater flexibility to absorb such aggressive pricing strategies compared to some of its competitors.

MercadoLibre remains Latin America’s most valuable company by market capitalization, but it faces mounting pressure from both established global giants and newer entrants offering highly competitive pricing models. The decision to further lower the free shipping threshold reflects the fierce competition in Brazil’s rapidly growing e-commerce sector, where convenience and price sensitivity remain key drivers of consumer behavior.

Logitech Announces $2 Billion Share Buyback and Confirms 2025 Outlook

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Logitech International has revealed plans to repurchase $2 billion worth of shares over the next three years, including an additional $600 million to boost its existing buyback program. The company also confirmed its outlook for fiscal year 2025, forecasting sales growth of 5.4% to 6.4%, reaching $4.54 to $4.57 billion.

Logitech also projects fiscal year 2026 sales will range from $4.53 billion to $4.71 billion, marking potential growth of 1% to 3% in U.S. dollars. This follows a positive performance in the pre-holiday quarter, with the company raising its full-year forecast in January due to increased sales and profit.

During its investor day in San Jose, California, Logitech emphasized its goal of achieving long-term annual sales growth of 7% to 10%, with a non-GAAP gross margin above 40% and an operating margin between 15% and 18%. CEO Hanneke Faber highlighted the company’s market leadership in key categories and its plans to expand into new verticals, with AI playing a pivotal role in its strategy.

Following a pandemic-driven sales surge and subsequent slowdown, Logitech now aims to target new markets, such as education and healthcare, while continuing to serve its traditional base of consumers, gamers, and businesses. The company is also focusing on selling products directly to businesses, including items like a computer mouse with a button that connects users to AI platforms like ChatGPT.

Starlink Seeks More Spectrum Access in Italy Amid EU Coordination Delay

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Starlink, Elon Musk’s space-based internet service, is pushing for access to additional spectrum in Italy to expand its satellite broadband capabilities. The company, which has been operating in Italy since 2021, submitted an application two years ago for access to the E-band spectrum, which would improve communications between its three Italian ground stations and its satellite network. This request has not been previously disclosed.

The E-band frequencies Starlink is targeting—71.0-76.0 GHz and 81.0-86.0 GHz—are already available to the company in the United States. If granted in Italy, this additional access would significantly boost Starlink’s ability to serve more customers, especially as the company seeks to strengthen its first-mover advantage in the low-orbit satellite broadband sector.

Italy’s Industry Junior Minister, Massimo Bitonci, stated that the country is adopting a cautious approach, waiting for the European Union to coordinate a unified stance on E-band spectrum usage. The E-band is jointly managed by Italy’s Ministry of Industry and the Ministry of Defense, with some frequencies requiring defense approval. However, no decision has been made yet regarding Starlink’s request.

In addition to spectrum concerns, Starlink is contemplating expanding its network by adding a new ground station in northern Italy, where demand has exceeded expectations. Conversely, it may reduce its presence in southern Italy, where demand has been lower than anticipated.

Starlink has approximately 55,000 customers in Italy, a figure that highlights the growing demand for its service in the country, where internet access in remote regions remains a challenge.