To explain the potential of Brazilian eCommerce, a recent study by UPS in conjunction with comStore states:
“Brazil, the fifth largest internet and mobile economy in the world is showcasing strong buyer demand for foreign retailers as 81% of Brazilian consumers confirm having made an online international purchase, mainly from China (63%).
Sixty percent of surveyed respondents in Brazil cited better pricing as a top reason to make international purchases. These are a few of the consumer insights included in the latest UPS Pulse of the Online Shopper™ global study.”
With so many Brazilians shopping online and even buying from overseas merchants, the market is ripe for expansion by Amazon.
The Seattle-based online retailer operates a local website for digital products and last year added some select electronics to the mix, but otherwise, the company’s online presence in Brazil has been minimal.
Amazon Logistics Expansion
Just earlier this year, Amazon sought more warehouse space in Sao Paulo and apparently was in discussion with Brazilian airline Azul SA to ship goods in the country.
The vast size of Brazil makes the country a logistics challenge that will require a significant airfreight capacity to offer Prime style shipping services.
Amazon is officially keeping quiet about its expansion goals for Brazil, but there are way too many hints now that Brazil must be at or near the top of their list.
Between seeking to expand its warehouse space, looking for faster ways to transport goods, and now being in discussion with major domestic cosmetics companies to expand its offerings in Brazil, it seems Amazon is getting closer of launching a full-service operation in Brazil.
It would be a shock if the company didn’t expand its operations in Brazil by 2019.
Even adding Miami (or South Florida) to hits HQ2 list, when the area mostly doesn’t fit many of the requirements of its HQ2 RFP, appears to be another subtle hint that Amazon is serious about Brazil and South America.