AliExpress, the cross-border platform owned by Chinese giant Alibaba, has partnered with Magazine Luiza, also known as Magalu, Brazil’s third-largest retailer in sales. Through the agreement announced today, AliExpress will become a Magalu seller and vice versa. The partnership comes at a controversial time, to say the least.
Domestic companies in the sector have just won a battle in Congress to seek tax equality with international e-commerce platforms, especially Asian ones such as Shein, Shopee ...
and AliExpress. In a securities filing, Magalu said AliExpress’s offer will complement the mix of products offered in the company’s marketplace, including items like fashion and home accessories. At the same time, Magalu will bring its offers of durable goods, such as household appliances and electronics, to Brazilian AliExpress customers, a category in which Magalu is the market leader in the country.
In a conversation with a journalist this morning, Magalu’s chief executive, Frederico Trajano, said this is a “win-win partnership.” In addition to allowing the two platforms to expand their offerings considerably, it will also boost their sources of revenue: a take rate will be charged for every AliExpress product sold on Magalu’s marketplaces; the same goes for what Magalu sells on AliExpress. The companies did not provide details, however, on how much this take rate would be.
Together, the two marketplaces have more than 700 million monthly visits and more than 60 .
