??02/07/2014 With a growing middle class and an Internet penetration still low, the neighboring country has become a promising new frontier for Internet giants
market their electronic readers across this country of continental dimensions, Amazon will experience firsthand the logistical problems of Brazil, considered an obstacle to an extensive retail operation as it has in the United States.
largest online store on the planet launched an Internet bookstore in Brazil in December 2012, a risky form of land in the emerging e-commerce market of 11,000 million dollars annually.
So far, the Kindle is only sold in bookstores, appliance stores and kiosks in malls.
“From north to south, from east to west, now we will be delivering products in Brazil,” he told Reuters Alex Szapiro , a former Apple executive hired to direct the landing of Amazon in Brazil.
“We learn from everything we do,” he added.
“We learn about digital books, learn about Brazilian consumers and from tomorrow we will learn how to move products from point A to point B,” he said.
Asked if the sale of Kindle was a rehearsal for a larger retail operation, Szapiro said both decisions were not connected.
“do not talk about future plans,” he said repeatedly during the interview.
a thriving middle class and a still low Internet penetration, Brazil has become a promising new frontier for Internet giants like Facebook, Twitter and Amazon .
market research firm estimated EBIT Brazilians spent 28,000 million reais (8,600 million euros) online in 2013, or 25 percent more than the previous year.
But the largest economy in Latin America is also known for its high taxes, stifling their labor costs and logistical bottlenecks that become e-commerce a challenging scenario for newcomers.
Unlike in the U.S., where Amazon operates its own distribution network from giant warehouses, Szapiro Brazilian delegate said shipments of the Kindle to outside firms, who declined to identify.
“Logistics in Brazil on one side can be a challenge, but from the point of view of electronic commerce Brazil is a very advanced country,” said the executive. “Some companies really prepared for that.”
Kindle Paperwhite be sold through local Amazon site to 479 reais, or almost double the price in the United States.
Amazon has been under pressure to try to maintain its growth by investing heavily in its retail and distribution networks around the world, and expand into the world of technology with the Kindle, services and cloud computing online media products.
The company does not disclose figures on its operation in Brazil. But total international sales increased 14 percent to 29,900 million in 2013.
Szapiro said Amazon will initially offer free delivery of the Kindle and will allow consumers to pay in 12 installments without surcharge, a common practice in the Brazilian consumer market shows how far the company is willing to go.
“That’s new for Amazon,” he said, “but it is mandatory in Brazil.”
“How much of this will be able to use in the future I do not know?” he added, “because we’re launching a different operation is an operation of physical sales,” said
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