Amazon has launched an in-house fulfilment and delivery network in Brazil. Till now Amazon in Brazil has predominantly sold only books and acted as a marketplace for third parties selling electronic and household items.
Fulfilling products across 11 categories
From Tuesday 22 January 2019, the business has stocked and fulfilled products itself. Amazon is offering products across 11 categories, from over 800 suppliers. Its online sales platform now stocks over 320,000 products, of which 200,000 are books. Amazon plans to expand this offering.
Online channel becoming increasingly competitive in Brazil
Amazon expanding its ecommerce offering will be a cause of concern for Brazil’s current ecommerce market leader MercadoLibre, as well as Carrefour and Casino. Our recent research piece on online in Latin America highlights the rising demand for ecommerce in the region, as internet penetration and smartphone adoption rates are both rapidly growing.
Although these are early stages for Amazon developing its ecommerce offer in Brazil, the business could apply learnings from its operations in Mexico, where the channel has been a big success. In January 2019 Amazon Mexico extended its online offer to include grocery. If this proves a success, Amazon could replicate this in Brazil in the future.
Carrefour’s latest results demonstrate increased consumer interest in the online channel
Carrefour Brazil announced a very strong ecommerce performance in its preliminary Q4 results. It said its gross merchandise volume (GMV) heavily outperformed the industry in Q4, with total sales up by 110%.
Carrefour’s own sales for Q4 were up 83% year-on-year (YoY). This was attributed to a strong Black Friday event and very strong sales in December. Marketplace sales for Q4 represented just 19% of this, which illustrates how Amazon could continue to expand on fulfilling products itself.
We have published a new piece of research which explores the five key trends set to shape the Latin American grocery market in 2019 and beyond. One of these trends centres on growth in the online channel. Subscribers can find the research here.