Amazon accelerates expansion in Brazil, introduces seller incentive policy

Recently, Amazon Brazil launched a new platform to help sellers purchase products. At the same time, Amazon is also making room for third-party sellers in its inventory to help them sell and expand the market. Amazon's policy can not only increase traffic to its own platform , but also help attract sellers to consider itself as an alternative to platforms such as Mercado Livre, Americanas and Magazine Luiza .

According to experts , in Brazil, the competition between e-commerce platforms has not yet determined the final winner. Although Mercado Livre is considered the leader in the Brazilian market, it still faces competition from local Latin American companies such as Magazine Luiza, Lojas Americanas and Via Varejo , in addition to the invasion of foreign players such as AliExpress , Shopee and Amazon .

According to disclosed market data, Magazine Luiza, Americanas and Via each have about 100,000 online stores , while Mercado Livre has more than 12 million sellers throughout Latin America . Ricardo Garrido , director of Amazon Brazil Partners , said that Amazon Brazil provided training to about 100,000 entrepreneurs between 2020 and 2021.

Although there is no official market ranking, consulting firm Varese said that Mercado Livre is undoubtedly the only leader in the Brazilian e-commerce market , followed by Magazine Luiza, Americanas and Via , with Amazon , AliExpress and Shopee catching up behind .

Amazon ’s new strategy in Brazil also includes a rewards program: if sellers use Amazon warehouses to store and pick up products, then sellers will receive a bonus of 300 reais . In addition, sellers will receive 6 reais for each high-demand product they add .

For Eduardo Terra, president of the Brazilian Association of Retail and Consumer Affairs , encouraging sellers to use Amazon 's delivery service is one of Amazon's strategies and has been repeatedly used in other countries .

However, in the United States, Amazon has been accused of forcing sellers to use its services and using sellers ' data to develop its own products, ultimately taking over their market share . However, Amazon said in a report released in June that it, like other retailers, collects user and seller data for analysis in order to provide customers with the best experience.

Amazon

Brazil

E-commerce