It looks like Amazon could be about to launch a full online store in Brazil — but a tough retail climate might make it ‘uncomfortable’ (AMZN)


Brazil

Amazon appears to be preparing to open a full online store in Brazil, according to analysts based in the country.
Brazil is a promising market, as it is one of the largest developing economies in the world and the largest in Latin America.
Still, it has historically been difficult for foreign retailers to do business there.
Amazon has taken a slightly different — and slower — approach to entering Brazil than it has with its other international forays.

Amazon in Brazil could be about to take on a whole new meaning beyond the name of the enormous rainforest that runs through the country.

It’s looking increasingly likely that the American e-commerce giant is about to become a bigger player in Brazil’s shopping ecosystem.

Amazon has sold books and some digital services in Brazil since 2014. But according to analysts at the Brazil-based firm BTG Pactual, which cited talks with suppliers and partners, Amazon could be planning to open a full, direct online store selling various other items — toys, baby products, electronics, computers, and appliances, for example — as soon as this month.

It’s a move that has been brewing for a while. Brazil offers good prospects for foreign investment, as it is one of the largest developing economies in the world and the largest in Latin America.

Reuters reported in February that Amazon was in talks with suppliers, had opened a warehouse for distributing goods, and had entered into talks with a freight airline. Bloomberg also reported this month that Amazon had entered into a pilot agreement with CargoX, a Brazilian trucking startup that focuses on moving cargo around the country.

Amazon declined to comment on the speculation.

Amazon is also hiring direct retail positions in São Paulo, Brazil, according to its job website. The advertised jobs include responsibilities like managing inventory (Senior Instock Manager) and managing relationships with vendors (Senior Vendor Manager Retail), which could indicate a ramping up of inventory. Amazon is hiring for 23 new positions on its retail team in São Paulo for Amazon.com.br.

Amazon has been looming over Brazil for a while. It has operated a marketplace — facilitating sales between third parties — for books, electronics, and home appliances since 2017.

But it has moved slowly in creating the same direct retail experience that it offers in the other global markets where it operates.

“They are uncomfortable in not being able to deliver a top-notch user experience,” Fabio Monteiro, a retail research analyst at BTG Pactual, told Business Insider. “Brazil is one of the most complex countries to operate. If you are a foreign retailer, it’s really complex.”

There are many reasons for that, Monteiro said, including a complex tax structure that varies from state to state, and a logistics system that relies on traversing sometimes-dangerous roads due to a lack of rail and navigable waterways.

Payment systems are also different in Brazil. Many Brazilian customers expect retailers to offer payment plans, especially for high-ticket items, which involve the retailer taking on some credit risk that …read more

Source:: Business Insider

      

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