Economy

Will Amazon ever crack the Brazil e-commerce nut?

amazon e-commerce brazil

When e-commerce behemoth Amazon entered the Brazilian market in 2012, there was an expectation that it would quickly mirror its success around the world and dominate Brazil’s online retail sector. However, seven years on, this has yet to transpire, with many local obstacles and a well-established domestic market. Pushes to ramp up Brazilian operations since late 2017 have seen some success, but Amazon still has a long way to go in the land that inspired its name. Shareholders are hoping that after some significant moves at the end of 2018, that this could finally be Amazon’s year in Brazil.

Amazon arrived in Brazil in 2012, but for years their sales were limited to Kindle e-readers and ebooks. In 2017, it appeared the global giant was going to flex its muscles in the country, after launching a marketplace platform for third-party vendors to sell physical products through the Amazon.com.br website. Shares of Brazil’s e-commerce leaders tumbled after the news, but quickly recovered, as it appeared Amazon’s expansion had stopped there.

The long-term plan of the company is to establish its own “First Party” program in Brazil, controlling its own sales and distribution. The wheels are in motion, with the company having hired...

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