Amazon launches fulfillment service in Brazil for sellers in its marketplace

The announcement comes weeks after Amazon opens three new distribution centers in Brazil: Betim, Distrito Federal, and Nova Santa Rita

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  • The e-commerce giant wants to expand its catalog of products that receive the Prime seal, its premium subscription service;
  • At the moment, sellers are being admitted to the service at the invitation of Amazon itself.

Amazon on Wednesday announced the debut in Brazil of the FBA (Fulfillment By Amazon) service in which it offers sellers in its marketplace all the logistics of storage, product delivery, and customer service.

With it, the e-commerce giant wants to expand its catalog of products that receive the Prime seal, its premium subscription service, which includes express deliveries and promotional content.

 Brazil’s head of FBA, Rafael Ferreira. Photo: Julio Vilela

The announcement comes weeks after Amazon opens three new distribution centers in Brazil – Betim (MG), Distrito Federal, and Nova Santa Rita (RS). Large companies in the sector, such as Mercado Libre and Magazine Luiza, also made major movements of logistical expansion this year in the face of the boom in e-commerce in Brazil due to the COVID-19 pandemic.

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According to the model announced, sellers who advertise on the Amazon marketplace in Brazil will be able to choose which products will be sold by the FBA, which must be stocked in advance at Amazon centers, which takes care of transporting the goods to warehouses, storing and later delivery to the end user.

Upon receiving the Prime seal, these products go into the category of free delivery and within 48 hours of delivery times. Also, the return period, which under normal conditions is around one week, rises to up to 30 days.

In return, Amazon charges a slightly higher commission than those normally charged on sales, which today range from 11% to 15%, depending on the category and weight. In the first year of the FBA, Amazon will not charge for warehousing or shipping costs for products.

READ ALSO: Amazon says sellers racked up $4.8 billion in global sales over holiday weekend

At the moment, sellers are being admitted to the service at the invitation of Amazon itself. The regions served by the system include Bahia, Pernambuco, Federal District, São Paulo, South and Southeast of the country.

The move represents an opportunity for Amazon to better profit from sales of its marketplace made by third parties, who today represent about half of the total.

But according to the head of sales in the Amazon marketplace in Brazil, Rafael Ferreira, the main objective of the company is not to expand control over the logistics chain of its sales.

“The goal is to further expand the positive experience of our customers,” he told reporters.

READ ALSO: Amazon expands in Brazil, riding e-commerce boom set off by COVID-19 distancing

The service was launched after the São Paulo government approved a law that simplified the operations of companies in the sector in the tax sphere, classifying them as logistics operators.

(Translated by LABS)

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