A recent survey by Brazil's investment bank BTG Pactual revealed significant growth in the Brazilian e-commerce sector, with Amazon leading in traffic increase. Amazon Brazil's market share jumped from 17.6% to 23.2%, while Mercado Livre, a top e-commerce firm, saw an increase from 24.4% to 28.9%. Shopee's share also rose from 8.7% to 9.2%.
In December 2023, Amazon Brazil opened its doors to Chinese sellers, becoming the 18th Amazon international site available to them. Many Chinese sellers view Brazil as a key entry point into the Latin American market, given Brazil's status as the largest economy in the region. Successful penetration in Brazil could open doors to the wider Latin American market. Brazil's e-commerce continues to grow rapidly, with projections of exceeding $200 billion by 2026. This growth has led to increased investment in logistics infrastructure by major platforms.
Alex Szapiro, CEO of Amazon Brazil, noted the country's rapid growth in Amazon Prime subscriptions. Since Amazon's entry into Brazil in 2012, its logistics network has expanded significantly, positioning it as a leading player in Brazil's e-commerce market. The substantial growth in website traffic, nearly doubling over three years, reflects Brazil's increasing significance in Amazon's global market, partly attributed to the shift in consumer behavior due to the pandemic.
However, EqualOcean notes challenges for Chinese sellers in Brazil, including high taxes and lengthy inventory holding periods. Brazil's states and the National Committee of State Finance Secretaries (Comsefaz) have imposed a 17% ICMS tax on cross-border e-commerce consumption. The competitive Brazilian e-commerce landscape is evolving, with platforms like Shopee, Shein, and TikTok entering the market, reshaping the sector's dynamics.