Amazon Inc. has begun expanding from Ebooks to E-retail in Brazil, by offering the Kindle Ebook reader as its first physical product.
Amazon’s Brazilian subsidiary Amazon.com.br launched in Brazil in 2012, offering an Ebook only platform. Due to logistical issues regarding shipping in Brazil, offering digital goods created a soft landing for the Ecommerce giant. Until now the Kindle Ebook reader was available in physical points-of-sale throughout Brazil and this will be the first time it is offered online.
By offering the Kindle as its first physical product, Amazon will be testing the waters on the problematic shipping currently plaguing the Brazilian E-retail market. Amazon has hired former Apple executive Alex Szapiro to command Amazon’s deployment in Brazil.
“From north to south, from east to west, we are going to be delivering products across Brazil. Logistics can be a challenge in Brazil but we also have to see the other side — Brazil is very advanced in terms of e-commerce,” Szapiro added.
Unlike in other part of the world, Amazon will not be relying on internal logistics and gargantuan fulfillment centers to complete purchase made from its platform, but will rather rely on partnerships with external companies, according to Szapiro. No firms have been confirmed for shipping fulfillment as of yet.
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Brazil is one of the fastest growing Ecommerce markets in Latin America and in 2013 showed an impressive 29% growth, resulting in a BRL 31.11 billion ($13.06 billion) market worth. Looking at Amazon’s track record in shipping innovation and advances, with the ability to partner with strong external entities proves it can overcome shipping obstacles successfully.
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