Amazon.com Inc (AMZN.O) is in talks with Brazilian airline Azul SA (AZUL.N) on shipping goods in the country, two sources with knowledge of the matter told Reuters, in the latest sign of the retailer"™s big plans in Latin America"™s largest economy.
The talks with Azul, which serves over 50 percent more Brazilian airports than its nearest rival, are the strongest signal yet that Amazon is lining up distribution to sell products directly to consumers throughout the country.
It also shows that the U.S. e-commerce company is serious about overcoming the nation"™s notorious logistical challenges, including shoddy roads, security problems and a national territory greater than the continental United States.
Representatives for Azul declined to comment on the talks.
Amazon said it did not comment on "rumors or speculation."
The Seattle-based online retailer has so far waded slowly into Brazil"™s highly competitive e-commerce market, starting with e-book sales in 2012, adding physical books two years later and offering third-party sales of electronics in October.
E-commerce accounts for around 5 percent of Brazil"™s roughly $300 billion retail market, about half its share in the United States. Yet Brazil"™s online sales have doubled in four years and are expected to grow at a double-digit pace in coming years.
Currently, Amazon relies on third-party vendors to ship their own goods sold on its Brazilian website, but that appears to be changing.
In February, Reuters reported that Amazon was looking to lease a 50,000-square-meter warehouse just outside Sao Paulo, in a sign the retailer may bring storage and distribution in-house.
In March, Reuters reported that the company met with an array of manufacturers in Sao Paulo to discuss plans to stock and sell products directly…
