Amazon Prime Day Fuels Brazilian E-commerce Surge

Retailers Brace for New Promotional Peaks as July Becomes a Key Sales Month

Amazon’s Prime Day event is significantly reshaping Brazil’s retail landscape, driving a surge in online sales that now rivals half of Black Friday’s performance. This aggressive strategy is compelling competitors to strategically position their own promotions throughout July.

Prime Day’s Growing Impact

Data from NielsenIQ reveals a substantial 23% year-over-year growth in e-commerce sales during the 2024 Prime Day. Last year, the American retail giant’s promotional date generated $6 billion in digital sales, a figure that demonstrates its growing influence, especially when compared to Black Friday’s $12 billion. This trend signals a dynamic shift in consumer behavior and market strategy.

The increase in traffic to Amazon’s own website alone saw a remarkable 71% jump during Prime Day 2024 compared to the days preceding the event. This surge has prompted other retailers to adapt, integrating July into their crucial promotional calendars.

Andrea Stoll, NielsenIQ’s e-commerce leader, observed, Retail is generally responding to this. It’s not just Amazon who is making offers during this period. It’s almost as if these dates are already making the composition of an alternative calendar to traditional dates, such as Mother’s Day or Christmas. She further explained that events like Prime Day and Black Friday create an anticipation effect where consumers plan their purchases in advance, often targeting higher-value items like appliances and electronics, though everyday essentials are also gaining traction.

Macroeconomic Factors and Consumer Behavior

The current economic climate, characterized by high interest rates and taxes, makes consumers more receptive to promotional periods. Brazil has great consumption potential, the problem is that we are strangled by taxes, a interest rate of 15%, noted Maura Ferreira, a Marketing teacher and researcher at Insper. Then for the worker, it is often more difficult to buy when it is not on a date like this. So, even, consumers expect these dates.

This anticipation, however, does not preclude price sensitivity. Consumers readily shift their spending to competitors offering better deals, intensifying market competition. While Amazon holds significant sway in the US e-commerce market, its influence in Brazil is still developing. Retail consultant Alberto Serrentino highlighted that the company is bolstering its promotional tactics and advertising campaigns to maximize its impact during key sales events.

The E-commerce Arena: Prime Players Vie for Dominance

In Brazil’s digital retail space, Amazon faces strong competition, particularly from Mercado Livre, often referred to as the primary Latin American contender in this arena. While national players like Magalu and international platforms such as Shopee also compete for consumer spending, Mercado Livre is considered a direct rival within the “pure player” category.

Mercado Livre is currently running its “Desconto” campaign, featuring presenter Marcos Mion, and promising significant discounts, free shipping, and flexible payment options. Obviously when competitors know that companies will drop these campaigns, they also react, create promotional actions to hitchhike in the media effort, stated Serrentino, emphasizing the ripple effect of major promotional activities.

Mercado Livre is also leveraging its own “doubled dates,” such as July 7th and June 6th, to reinforce its market presence. We want to consolidate these dates as new retail promotional peaks, offering special conditions, attractive coupons and logistical benefits that generate real value to the consumer, a company representative shared with Infomoney. This strategic approach aims to further strengthen its value proposition.

NielsenIQ data indicates that consumer awareness of Prime Day has risen from 38% in 2023 to 49.5% in 2024, suggesting Amazon’s growing recognition for the event. This increased visibility was amplified by a notable advertising campaign featuring singer Sandy, highlighting Amazon’s commitment to the Brazilian market.

Juliana Sztrajtman, President of Amazon Brazil, confirmed the nation’s central role in the company’s global expansion strategy. I am assuming in the year when Amazon globally made the decision that Brazil would be the country in which it is most investing for expansion in the world, she stated. We believe it is the country that can most bring new customers to Amazon globally. Amazon has invested $8 billion in Brazil over the past two years, contributing a significant portion of its $33 billion investment over the last 14 years.

Looking ahead, experts anticipate the emergence of more proprietary promotional dates akin to Prime Day. Andrea Stoll predicts this trend will lead to a diffusion of sales previously concentrated in major events like Black Friday. Amazon itself has introduced a “Warm Prime Day” in the weeks leading up to the main event, recognizing the Brazilian consumer’s preference for extended shopping periods. Brazilian likes to have more time to buy, Sztrajtman noted. Advance offers are a very specific question in Brazil, because we know that the customer likes to come back, looking and understanding what is the best offer.