Amazon’s Strategy to Dominate Latin America

Amazon’s Strategy to Dominate Latin America


Howdy!

Persistence is key to achieving one’s goals, even for giant corporations like Amazon that finally launched their long overdue fulfillment network in Brazil in addition to selling their own products on their Brazilian marketplace.

It’s no secret that Amazon had a hard time setting up their fulfilment and delivery network in Brazil because of the country’s complex tax system and logistics issues.

Now, the eCommerce company are delivering their own private-label brands, and those of third-party sellers on Amazon.com.br, to Brazilian customers at a rapid pace.

If that persists, it won’t be any surprise to see them taking over Latin America’s eCommerce market soon, which has been on the giant’s radar for the longest time. In the meantime, the region’s retail chains that run physical and online stores are relishing the fact that they’re still ahead in the race.

Omnichannel retailers take the top spots

According to Internet Retailer’s 2018 Latin America 500, omnichannel companies make up 49% of the total online sales by the 500 leading online retailers in Latin America; meanwhile, brands that only sell online account for 38.7% of the figure.

Walmart is the only retail chain outside the region that made it to the Top 10 Latin American eCommerce companies. The online magazine’s list doesn’t include online marketplaces, saying these only serve as a platform for the goods of other sellers.

Amazon’s successful entry into Brazil’s market, though, where it operates not just as a marketplace but as an eCommerce company supplying and delivering goods, has tightened the competition. It’s only a matter of time before it outshines local sellers in the country if not the entire Latin America.  

What do you think of Amazon’s diversification strategy? Share your thoughts with us in the comments below.

As always, to your continued success,

Dave & Matt   

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