Amazon Expansion in Brazil Could Scramble Market

The ecommerce giant has plenty of room to grow 

Author: Matteo Cuervels

October 25, 2017

Amazon is expanding its efforts in Brazil, with a new initiative that lets third-party vendors sell electronic goods within its marketplace in the country.

Consumers in Brazil will find more than 110,000 electronics and accessories, which add to the already existing marketplace catalog for books on Amazon.com.br. The selection includes items such as smartphones, computers and TVs from various brands such as Samsung, Motorola and Sony.

The stock price of Argentina-based MercadoLibre has tumbled since the Amazon announcement, driven lower by worries about increased competition from the ecommerce giant. Brazil accounted for 54% of MercadoLibre’s total revenues in 2016.

But as of January this year, Amazon remained a relatively small player in the Brazilian market, at least in terms of unique visitors.

MercadoLibre, or MercadoLivre in Portuguese, ranked as the country’s top ecommerce platform among desktop buyers in January 2017, according to data from comScore. The firm reported that there were 27.7 million unique desktop visitors to the site during that month.

Meanwhile, CNova-owned platforms took second place with 23.4 million visitors, followed by B2W Digital’s platforms, which accounted for 21.7 million visitors.

Amazon, by contrast, was in ninth place with 6.1 million visitors.

An August 2017 report from local ecommerce research company E-bit Informação showed that there were 25.5 million digital buyers in Brazil during the first half of 2017, a 10.3% increase compared with the same period a year prior.

Adults ages 35 and older accounted for 69% of digital buyers, while those 25 to 34 made up 23%. The remaining 8% were ages 24 and younger.

Improved 3G and 4G internet speeds—in addition to the already known advantages offered by ecommerce, such as low prices and product information—were some of the main growth drivers for ecommerce adoption in Brazil, according to E-bit Informação.


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