Uruguayan payments startup DLocal said on June 15 that it has struck a partnership with Amazon.com Inc, clearing the way for the first time for international vendors to sell products on Amazon's Brazilian online marketplace, Reuters reported.
The agreement, announced in a joint statement by the two companies, will expand the selection of the site, which has traditionally been limited to local suppliers.
Michel Golffed, senior vice president of DLocal, said that some international sellers have already joined Amazon's Marketplace, and that others will join the plan for a gradual rollout in the coming days.
Golffed says, "Latin America is one of the fastest growing areas of retail e-commerce, and if we look at it from a consumer's point of view, they can shop in Brazil with a local payment method... They come from sellers all over the world."
Founded in 2016, DLocal is dedicated to integrating local and global payment systems, with a focus on emerging markets. On June 3, the company, whose clients include TripAdvisor and Dropbox, went public on Nasdaq, raising more than $600 million and valuing it at $9 billion.
Golffed says that of its current 29 markets, 13 are in Latin America, including Amazon's existing partner in Chile. "Allowing Brazil to make payments in dollars to foreign suppliers is particularly complicated 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 reported that nearly 30 percent of the country's population made at least one virtual transaction in 2019. According to MasterCard's SpendingPulse report, e-commerce sales in Brazil continued to accelerate in April, growing 69% compared to the same month in 2020, with 65% of Brazilians buying goods on foreign websites and apps.
Golffed didn't say whether DLocal is also looking to tie up with Amazon's main competitors in Brazil, including top e-commerce sites Mercadolibre, Nova and B2W.
Latin America has great potential for e-commerce development. With the cooperation between DLocal and Amazon, it is believed that it will further promote the development of e-commerce in Latin America.