Amazon extends its own operation and flies in the face of retail giants in the country

Diapers, tools, cleaning supplies, beauty and home appliances spread by 40000 m ² of the first Amazon distribution center in Brazil. The space, equivalent to six football fields, is the symbol of an anticipated movement of global e-commerce giant in the country. More than six years of your arrival in Brazil, Amazon finally starts this Tuesday, 22, working with own stock of 120,000 products and sell directly to the final consumer. From 2017, the American giant just sold these items for market place, that is, so outsourced. The only operation was itself. In an interview with associated press/Broadcast, the President of the retailer in the country, Alex Szapiro, says the distribution centre itself is an "evolution" of the company's brazilian operation. News about Amazon's movement towards an own operation affected the roles of the major online retailers in the country. B2W (owner of Americanas.com and Submarino) was 3.26% drop, to R $44.40, while Magazine Luiza retreated 4.13%, to R $167. "A platform like this is a direct competition. Is an alert, light a red light, "says Louise Barsi Elite Brokerage analyst. BTG Pactual, in a report, the question: "relativized despite Amazon's success in markets such as Germany, United Kingdom and United States and the strong position of the company in India and in Japan, we hope that in Brazil the company keep facing competition from well-established companies. " According to Pedro Guasti, Chairman of the Board of Commerce Fecomercio-SP, the movement of the Amazon the brazilian operation of international standard in quantity of items offered and delivery times. For him, it's an evolution "shy but still conscious. Amazon does not reveal values invested in the distribution center of Cajamar, the metropolitan region of São Paulo. The space rented is owned by Prologis warehouse operator. The packaging process is mostly manual, with the aid of machines. According to Amazon, there are process steps that are most effective when made by humans. Although, for the time being, don't work with food, Amazon will go into products sold in supermarkets, such as cleaning items. This strategy is adopted also at Magazine Luiza from 2017. According to experts, these products ensure fidelity and high frequency of purchase. In the U.S., the advancement of Amazon in this area led to the acquisition of supermarkets Whole Foods. Here, Amazon maintains confidentiality of the plans. "More than compete with A or B, we want to make sure that, from the moment the client wakes up until the time he goes to sleep, we have available the products of your consumption," says Szapiro. Freight. The proposal from Amazon is offering free shipping for purchases over R $149, in the case of standard delivery, up to a week. For South and South-East capital, there is fast delivery within one day, which is charged. Simulation made by reporting for the São Paulo showed a rate of R $10.90. The Amazon distribution center will serve only the company's products. For now, the giant will not provide storage services and delivery to their market place vendors, called Fulfillment by Amazon. According to Guasti, this would be a natural step for the company in Brazil. Questioned, Szapiro wouldn't comment. Three questions for Alex Szapiro, President of the Amazon in Brazil 1. Why, after all these years, the company decided to operate in a more traditional form of retailing, buying and stocking goods? There's been an evolution. It is a path, let's not stop there. There's a lot we're going to look in the coming years. 2. There's a chance the company offer deliveries in 2 hours in the country, as it does in New York and London? Our dream is to close your eyes and have absolutely everything you're looking for on Amazon. Here, we're talking about a different time. Six years in Brazil is a short story. When you think long term, we have a lot to bring. The Prime Now, this service enables deliveries in one or 2 hours, doesn't exist here. But I say: stay tuned. I'm sure that, not only in 2019 as over the next few years, a lot of things will happen. 3. How will the price for stock items? We are always anxious to bring a good supply to the consumer. But there's no point in price if the product ended up in inventory and it takes to come back. Or if you buy and, instead of receiving within, it takes longer. To surprise positively, price is important, but it's just one of the components.