Can Amazon Break Into Latin America’s eCommerce Market Soon?

Latin America’s bricks-and-mortar retailers are generating more sales not only from their physical stores but also from their online stores as industry giants experience a slowdown in penetrating the region’s eCommerce market.

Internet Retailer’s data of Latin America’s top 500 eCommerce players in 2018 shows that omni-channel retailers accounted for 49% of the region’s total online retail sales, compared with 38.7% for companies that only sell online.

These retailers do not include online marketplaces that serve as an avenue through which other sellers can sell, such as MercadoLibre, the region’s leading eCommerce platform with a gross merchandise volume of $11.75 billion, according to Internet Retailer.

Amazon poses a big challenge to local sellers

amazon logoDespite its strong sales momentum, Latin America’s gated eCommerce wouldn’t hold up much longer as Amazon’s big plans are underway.

The company has started selling its own products, aside from e-books and Kindle devices, on its Brazilian website, Amazon.com.br, which also offers fashion wear from third-party sellers. Also, it has launched its first fulfillment center in Brazil, which had been previously put on hold because of the country’s complicated tax system and issue on logistics.

Amazon has always been open about its expansion plans in Latin America, using Brazil as its springboard since the country has the biggest market in the region. The eCommerce giant’s entry will surely give Brazilian consumers a fresh perspective on online shopping, and retailers a reason to reassess their selling and marketing strategies.

How long until Amazon disrupts Latin America’s eCommerce market? Share your thoughts with us in the comments below or over in our Facebook Group.