DLocal and Amazon reach cooperation, Brazilian market connects global sellers

Uruguayan payments startup DLocal said on June 15 it had struck a partnership with Amazon.com Inc, clearing the way for international vendors to sell products on Amazon’s Brazilian online marketplace for the first time.

The deal, announced in a joint statement by the two companies, will expand the selection on the site, which has traditionally been limited to local suppliers.

Michel Golffed, senior vice president of DLocal, said some international sellers have already joined the Amazon marketplace and others will join the program which will be gradually rolled out in the coming days.

“Latin America is one of the fastest growing regions for retail e-commerce, and if we look at it from a consumer perspective, they can shop in Brazil using local payment methods … and these goods are coming from sellers all over the world,” Golffed said .

Founded in 2016 , DLocal is dedicated to integrating local and global payment systems, focusing on emerging markets. On June 3, the company, whose clients include Tripadvisor and Dropbox, went public on the Nasdaq, raising more than $600 million and reaching a market value of $9 billion.

Golffed said that of its current 29 markets, 13 are in Latin America, including Amazon’s existing partner in Chile. “ Allowing dollar payments to foreign suppliers in Brazil is particularly complex given the local regulatory and legal framework, ” he said.

Brazil is the largest e-commerce market in Latin America by number of users. The U.S. International Trade Administration reports that nearly 30% of the country ’s population conducted at least one virtual transaction in 2019. According to the Mastercard SpendingPulse report, Brazil’s e-commerce sales continued to accelerate in April, up 69% compared to the same period in 2020 , and 65% of Brazilians will purchase goods on foreign websites and apps .

Golffed did not say whether DLocal was also seeking to work with Amazon’s main competitors in Brazil, including top e-commerce sites Mercadolibre, nova and B2W.

Latin American e-commerce has great potential for development. With the cooperation between DLocal and Amazon, it is believed that it will further promote the development of e-commerce in Latin America.

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Latin America