Amazon Brazil Guide: Understanding the Marketplace

What’s better than getting start on the biggest eCommerce market in South America? Breaking in at a time when it’s growing by leaps and bounds!

As South America’s richest, largest, and most populous country, the Brazilian market is a lucrative opportunity for online retailers looking to expand — especially on Amazon Brazil.

If you’re hoping to get started on the Amazon Brazil marketplace, this is the guide for you. We’ll cover the state of eCommerce in Brazil, what Brazilians are shopping for, and what the competition looks like. Like its Brazilian namesake, Amazon can be a real jungle.

eCommerce in Brazil: A Lucrative Opportunity

At the beginning of the year, Brazilian eCommerce revenue was expected to reach $21 billion by the end of 2020. While optimistic for the time, by now we know this was an underestimate. As of this writing, Brazilian eCommerce revenue has already reached over $20 billion, with four months left to go.

There’s no doubt about it — right now is a turning point for Brazilian eCommerce. On a sobering note, experts cite the COVID pandemic as the cause for the sharp and sudden interest in online shopping, with a 65.7% growth in online orders. However, the upturn has caused thousands of small- and mid-sized Brazilian businesses to move online, fortifying the future of Brazil’s eCommerce market.

Considering the 49.4% user penetration of the world’s 6th most populous country, there’s still more potential for growth in Brazilian eCommerce, especially considering the popularity of online shopping among younger customers. Add to that an Average Revenue Per User (ARPU) of $201.75, and you can see expanding to Amazon Brazil is an enticing idea.

However, there are some drawbacks to the Brazilian eCommerce market, namely import taxes. In an effort to encourage domestic sales, taxes on imported goods can reach as high as 60%, not including customs fees. For that reason alone, it’s recommended to take advantage of Amazon Brazil’s FBA fulfillment centers, or another third-party fulfillment agency that operates within Brazilian borders.

Online Shopping Behavior in Brazil

As with all cultures, Brazilian online shopping behaviors are unique and follow their own trends. Breaking into an international market requires understanding these differences so you can plan for them and incorporate them into your sales strategy.

When it comes to eCommerce, Brazilians actually prefer using smartphones to complete purchases, with mobile eCommerce accounting for over a third of transactions. However, 48% of those surveyed stated that the most important feature for mobile eCommerce is the option to buy online and pick up in-store. Although you won’t have that opportunity as an Amazon Brazil seller, you’ll have to find a way to stay competitive with online retailers who do.

In terms of payment, credit cards are the most popular method, although some Brazilians prefer Boleto Bancário, a specialized form of bank payments native to Brazil.

The popular product categories are fairly congruent with other markets, according to Statista’s 2019 assessment. By sales volume share percentage, the top three categories are:

Fashion & accessories (21%)
Entertainment (14.9%)
Beauty, perfume & health (12.5%)

All in all, Brazilian online shopping behavior is very encouraging to new sellers, especially considering Amazon’s support of credit card transactions and local fulfillment centers.

Top Brazilian eCommerce Sites: Your Competition

Of course, foreign merchants will be competing against local eCommerce companies, and Amazon doesn’t even breach the top three. Take a look at the biggest Brazilian eCommerce platforms (based on the findings of Ecommerce Guide)to see both what marketing trends are effective and where there’s room for improvement.

Mercado Livre — An Argentinian online market that has been selling in Brazil since 1999. It's popular all over South American and sells in all categories, making it the continent’s own version of Amazon.
Americanas — The eCommerce branch of the brick-and-mortar chain Lojas Americanas, this is the biggest eCommerce site launched from Brazil, selling in all categories.
OLX — A Dutch market with an international expansion similar to Amazon; although it offers goods in all categories, in Brazil it's most popular for computers, tech, and electronics.
Amazon Brazil — This is where you’ll be selling from; it’s worth checking out to see what other sellers are doing, in particular regarding pricing and how they address customers.
Magazine Luiza — One of Brazil’s most loved retail brands, although its eCommerce capabilities come second to their brick-and-mortar stores.
Casas Bahia — Known particularly for its home goods and furniture, this is another brick-and-mortar giant who’s merely complementing sales through eCommerce.
Netshoes — Brazil’s leading name for sports retail, not just sneakers but sports apparel, equipment, and supplements as well.
Submarino — One of Brazil’s older eCommerce stores, offering a wide selection of products across categories.
Shoptime — A sister store to Submarino, and owned by the same group, it sells domestic and international brands across a multitude of categories.
Dafiti — One of the newer Brazilian eCommerce brands, it originated as an online fashion store for men, women, and children, but has since expanded to offer accessories, home goods, and beauty products.

No one knows Brazilian shoppers better than the leading retailers, so look to these sites for insight and trends.

Getting Started on Amazon Brazil

Now that you have a general understanding of the Brazilian eCommerce market, you can use this knowledge to help you decide whether it makes sense to list your products in Brazil. As with any international marketplace, it's very important to have your listings translated and localized by a native speaker. Make sure that your product images are clear and provide details for shoppers.

Getting reviews in a new marketplace can be a challenge for many Amazon sellers. Fortunately, FeedbackFive supports the Amazon Brazil marketplace (along with 16 others!) and includes professional email templates that are translated into Portuguese to help you get started. You can also use the Request a Review functionality to schedule a request that is automatically translated into the recipient's language of choice.