LatAm List – Amazon arrived in Brazil in 2012 with its sales limited to digital and physical books. The e-commerce giant has decided to increase the product categories it offers in Latin America’s largest economy.
The seemingly opportune timing of this decision has nothing to do with the change of administration, assures Alex Szapiro, Amazon’s president in Brazil.
Szapiro did not disclose details about the investment or the number of people hired to launch the retail platform. However, he said that Amazon employs more than 1,400 people directly and indirectly within Brazil.
BTG Pactual analysts Fabio Monteiro and Luiz Guanais point out that Amazon’s decision means that the company is ready to strengthen its investments and eventually partner up with carriers and operators to adopt a “last mile” system, in which products are delivered within hours of online purchase.
The analysts advise that the company should consider the fierce competition it faces against well-established retailers in the Brazilian market, and adopt a more gradual approach.
However, news of Amazon’s retail platform launch has already negatively affected e-commerce companies’ stocks on Ibovespa, including B2W, Magazine Luiza, and Lojas Americanas.
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