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Assistant General Manager, Merchandising - 69th st - Upper Darby
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By
Reuters API
Published
Sep 11, 2019
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Amazon launches Prime service in challenging Brazil market

By
Reuters API
Published
Sep 11, 2019

Amazon.com Inc said on Tuesday it will launch its Prime subscription service in Brazil, where it has struggled against tough local competition in Latin America’s largest economy.


Reuters


Shares in Brazilian retailers tumbled after Amazon announced it is offering Prime subscribers unlimited nationwide free shipping and a maximum 48-hour delivery time in over 90 municipalities for goods ranging from clothes to electronics.

The leading e-commerce company is trying to dislodge established local e-commerce rivals including Magazine Luiza and Mercado Libre.

Shares in Magazine Luiza fell over 4.5%, while shares in Via Varejo fell 4.8% and shares in B2W fell 5.6%.

Amazon Prime subscribers will also have access to movies, music, and digital books and magazines on the platform, as Amazon looks to compete with online streaming services like Netflix.

The Prime launch represents Amazon’s boldest move in Brazil, where it launched in 2012 as a bookseller before adding other products to the platform.

It has struggled to make inroads against the incumbents, with analysts flagging logistical and tax issues among the challenges the U.S. giant has faced before launching more products and services.

“We went as fast as possible and as slowly as necessary,” Jamil Ghani, Amazon Prime international vice president, told Reuters.

The Brazilian Prime package will cost 9.90 reais (1.96 pounds) a month, or 89.00 reais a year.
 

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