Amazon.com Inc. will start stocking, selling and delivering items directly in Brazil, nearly a year after the U.S. e-commerce giant was reported to be planning the move, Reuters reported Jan. 22, quoting Amazon's Brazil country manager, Alex Szapiro.
Amazon will directly sell 11 product categories from over 800 suppliers, including L'Oréal SA and household hardware products maker Stanley Black & Decker Inc. Its Fulfillment by Amazon platform will stock 320,000 different products, including 200,000 books, Szapiro reportedly told Reuters.
The company, which first entered Brazil in 2012, has gradually increased its marketplace offering to include electronic items sold by third-party vendors in October 2017 and fashion and sports products from August 2018.
However, efforts to set up its own fulfillment and delivery network have been delayed by tax and logistics issues, as well as difficult relations with some vendors, the news agency reported.
Amazon in April 2018 was said to be in talks with Brazilian airline Azul SA over shipping goods in the country as a way to overcome logistical challenges. Bloomberg News also reported Oct. 4, 2018, that Amazon was partnering with São Paulo-based startup CargoX Transportes to pilot the use of bulletproof trucks for delivering electronics and other high-value goods in the country.
"As in every negotiation, you take a seat at a table and you want to agree on the best possible terms," Szapiro told Reuters regarding Amazon's discussions with suppliers.
The company leased a 47,000-square-meter warehouse outside São Paulo to help with its fulfillment program, a move reported in February 2018.
Amazon reportedly employs, directly and indirectly, over 1,400 people in Brazil.
Following the news, shares of Brazilian online retailer B2W - Companhia Digital were down 3.26% at 44.50 reais.
As of Jan. 21, US$1 was equivalent to 3.77 Brazilian reais.