Is MercadoLibre maintaining its leadership Vs. Amazon in the sector of E-Commerce?
The estimated spending power of Latin America is $3.24trillion by 600 million retail customers. While Amazon, Alibaba, and Walmart have taken notice of this estimation, the Latin Americans will still buy from their locals. Only Amazon is being used in Latin America.
The biggest E-Commerce market in Latin America:
A rapid increase in the number of buyers in E-commerce is expected. The increase will be by 151.1million people only from Latin America in 2019. Although a drastic increase is being expected in Latin America, according to regional buyers, Brazil is the market leader followed by Mexico, then Argentina.
Amazon in Brazil:
Amazon has slowly and steadily crept into the market of Brazil. While at the beginning they only sold the e-books, slowly they turned towards the selling of actual books. Then to expand they set up stalls. Later they started selling the books to other vendors as well as Amazon invited them to do so.
- Brazilians E-Commerce challenges:
Just because Amazon is expanding in Brazil, it doesn’t mean that they don’t have to think about it’s working. Amazon still has to make their decision very wisely.
Brazil has a very rigid landscape which makes the shipping of goods and services very difficult. To maintain their ground in Brazil Amazon have slowly but have tackled the situation. They are still working to make it even faster then it already is.
Brazilians prefer their locals more on this point as they don’t have to pay the tax of 6.83% on their purchases which they have to pay if they choose any other medium to buy for example Amazon or Alibaba.
- Return Policy:
This is a bounce point for Amazon as they are the only ones who have the return policy making the Brazilians buy more from Amazon than any other local website.