Amazon opens trial operation in Brazil!Unlock the global e-commerce “dark horse”!
July 7, 2023
Table of Contents
01/ E-commerce opportunities in Latin America
02/ Brazil Website and Checkout Tips
03/ Mexico's annual trends and billing tips
Latin America and China's
How “iron” are there in trade relationships?
Since 2012, China has maintained its position as Latin America's second-largest trading partner, and last year's total trade reached US$485.79 billion 1. As one of the fastest-growing e-commerce regions in the world2, Latin America, where “gold is everywhere,” is attracting more and more Chinese sellers to explore new volumes.
Recently, Amazon also brought major happy news to Chinese sellers who want to open Latin American sites:
🎉
Amazon's Brazil site has begun trial operation!
Next, let's take you to Latin America — unravel the “mystery” of Amazon's Brazil site, discover growth opportunities you didn't know, and learn about the multiple official supports for entering the two major Latin American sites in Brazil and Mexico!
01 Latin America
A “dark horse of growth” with large scale and good potential
E-commerce region with full potential
There was an “annual growth myth” of 61% in retail e-commerce sales in Latin America3. According to eMarketer's forecast, this figure will continue to grow 15.4% in 2024. As the leader of e-commerce in Latin America, Brazil's e-commerce revenue is expected to grow to US$86.53 billion in 2025, with a compound annual growth rate of 20.73% 5!
The online shopping population is large, and there is still room for growth
In 2022, the number of online shoppers in Latin America exceeded 300 million 6 million, and the e-commerce penetration rate reached 48.2% 7. Among them, in 2023, the penetration rate of e-commerce in Brazil was as high as 60.3%, and is expected to reach 66.7% by 2027.
The population is large and young
As one of the regions with the youngest population composition in the world, Latin America accounts for 91% of the population under 65, 9 with an average age of 31 years 10, giving strong e-commerce purchasing power sufficient “momentum”.
If you want to get a share of this 100 billion dollar blue ocean, joining Amazon is definitely a good choice. Compared to the Mexican station, which has been open for many years, seller friends may be a bit unfamiliar with the Brazilian station that is being tested.
Don't worry, we've prepared a copy of the Amazon Brazil site guide and annual trends to help you solve all your questions in one stop!
02 Brazil station
Easy way to place an order in 3 steps
Compared to mature sites, Brazil is still in a stage of rapid growth, and there is relatively little competition. Coupled with Amazon's official resource support, Brazil has become a popular site with unlimited “money”. In addition to this, anti-season hot product selection features and continuous promotions can help sellers get started faster and break through the game!
The first step in issuing an order: support from official resources
During the trial operation of the Brazilian site, Amazon provided sellers with a large amount of additional drainage resource support to help sell big sales in all aspects!
● Marketing resources: Currently, sellers in Brazil can use in-site promotions such as coupons, flash sales, and Zhendian Treasure, as well as various marketing resources such as holiday promotions and in-site product promotion
● Preferential benefits: Brazil can report flash sales, 7-day promotions, and town store treasures for free. You can also use coupons for free to improve marketing cost effectiveness
● Intimate guidance: For novice sellers, account managers can also help report promotions to help sellers unlock more exposure
Order Step 2: Logistics Solution
Currently, all logistics in Brazil uses the seller-self-delivery (MFN) model, which means that the seller ships the products from the seller to the buyer themselves after receiving the buyer's order. For Chinese sellers, this means shipping products from within China to Brazilian buyers themselves. Therefore, sellers can control everything from inventory management to returns and exchanges.
For sellers trying out the new site, Seller Self Delivery (MFN) is an ideal solution with five major advantages — flexible investment costs, free storage methods, easy testing of new products, a wide range of products, and freedom of delivery methods.
Tips:
Sellers are advised to use reliable logistics providers to ensure customer experience and help healthy logistics performance. If you join the group, you can get more information about carriers.
1. Sellers should fill in the correct tracking number to ensure a healthy Valid Tracking Rate (VTR).
2. Amazon account managers can provide a 1v1 service to guide self-delivery (MFN) shipments.
The third step in issuing an order
Every month is a holiday season, and anti-season selection ignites business opportunities throughout the year
Promotion calendar
Brazil has major promotions every month throughout the year, such as Carnival in February, Consumer Week in March, Mother's Day in April, Children's Day in October, Christmas in December, etc. Consumers will have strong demand for gifts and shopping to help sellers get started quickly.
HOT SELLING CATEGORIES
Currently, the four major categories that are growing rapidly in Brazil are consumer goods, consumer electronics, home lifestyle, and fashion categories. Furthermore, since Brazil is located in the southern hemisphere, the product selection can be counterseasonally complementary to sites such as Europe and the US, greatly reducing the pressure on seasonal products to be slow to sell, making it easy for sellers to sell well throughout the year.
1. consumer goods
Brazilian online shopping consumers are younger, and there is a large demand and variety of everyday consumer goods, making it suitable for sellers to choose the best of the best. Popular items include humidifiers, hair dryers, shavers, body fat scales, etc.
2. consumer electronics
Consumer electronics has performed well on all Amazon sites. In the Brazilian Consumer Day promotion that just ended in March, sales of consumer electronics products continued to rise. Brazilian consumers are keen to try out 3C electronic products. Popular items include smart wearables, gaming accessories, headsets, speakers, etc.
3. Home life
As Brazilian consumers spend more time at home, products in subcategories such as household kitchen tools have high potential. Mops, cutlery, showers, etc. are all popular items.
4. Fashion category
Brazil is located in the southern hemisphere and has a warm climate all year round. Therefore, sellers on mature sites such as North America can sell apparel products in the anti-season manner. Popular items include outdoor sneakers, backpacks, and flip flops.
Tip Underwear socks and basic T-shirts can be sold together for better results
In addition to New Blue Ocean Brazil, another major Amazon site in Latin America — Mexico — also has unlimited business opportunities. Local Hot Sale (Hot Sale), the logistics artifact Amazon Logistics Remote Delivery Program (NARF), three major entry benefits... Please check out our Mexico Station Year-Round Ordering Guide we have prepared for you. So many surprises, waiting for you!
MX
Annual trends and billing tips
Promotion and product selection strategy
Promotion calendar
Online shopping consumers in Mexico are generally young and pursue cost performance. Every time the promotion season arrives, sellers' sales performance will also be better than during the flat sales period. Therefore, making all kinds of preparations in advance according to the local promotion rhythm is a “compulsory course” for Mexican sellers.
HOT SELLING CATEGORIES
Mexican consumers prefer cost-effective products, and consumer electronics and daily necessities are very popular. Moreover, when shopping online, they pay more attention to information such as product safety, flexible payment methods, detailed graphic descriptions, and efficient and fast logistics.
Therefore, on the basis of doing a good job in product selection, sellers are advised to make targeted localized adjustments to product detail pages, payment methods, etc.
1. Furniture household category
With the development of e-commerce, furniture shopping in Mexico has moved from offline to online. Therefore, products that account for a relatively high proportion of offline products will have a growing trend online.
Hot products: desk lamps, tower fans, ceiling chandeliers, freestanding shoe racks & hangers, etc.
2. Electronic office category
Mexican consumers spent a long time working and playing from home in the previous two years, spawned a boom in electronic product consumption. These products are rapidly updated and iterated. They need to match popular trends according to their own advantages, and grasp promotion points and peak sales seasons.
Hot products: headphones/in-ear contours, smartwatches, record players, webcams, 3D printers, etc.
3. Kitchen category
With the development of e-commerce, more segmented needs can be met online. Mexican consumers have gradually developed a demand for cooking and eating out with meals.
Hot products: electric countertop mixers, electric egg beaters, reusable lunch bags and lunch boxes, kitchen storage and storage accessories
4. Furniture category
Phenomena such as working from home make people spend more time at home, driving up demand for peripheral products.
Hot products: home office tables and chairs, bar stools, floating shelves, coffee tables
Promotion tools are free for a limited time
During the Hot Sale (Hot Sale), which is the most important promotion in the first half of the year in Mexico, the three major promotion tools (Town Store Treasure, 7-Day Sale, and Lightning Deal) can all be reported free of charge. For eligible deals, account managers can also manually request additional reporting.
Hot selling categories: electronic products, fashion products, household goods, pet products
Logistics solutions
In addition to using local Amazon Logistics (FBA) in Mexico, sellers can also use Amazon Logistics Remote Delivery Program (NARF), a logistics solution exclusive to North American sellers launched by Amazon, to deliver FBA inventory stored in Amazon fulfillment centers in the US to Mexico with one click if they want to test at a low cost.
Enrollment benefits
If you join Amazon Mexico now, you can also enjoy entry benefits
No additional monthly rent: Sellers only need to pay a monthly service fee of $39.99/month for the US site, and no additional monthly rent is required to enter Mexico.
Amazon Logistics New Product Delivery Promotion Program: Helping you with ultra-low cost FBA testing. Eligible new FBA ASINs will also receive benefits such as exemption from storage fees and inventory removal fees.
RFC tax benefits: For sellers using Mexican FBA inventory, there is no need to withhold up to 36% of taxes after registering an RFC tax ID, and sellers can have a better cash flow reserve.