From Shelf Awareness:

Amazon plans to create a digital bookstore in Brazilsometime between October and November of this year, Reuters reported, citing Brazilian publishers and an industry source. Because of logistical problems and complex taxes, it will be the first Amazon bookstore that sells only e-books, not printed books.

Pedro Guasti, director of research firm eBit in Sao Paulo, said that in 2012, Brazil “should reach $12 billion in sales online, a level that justifies their entry. If they wait much longer it would become very expensive.”

Amazon has signed contracts with approximately 30 Brazilian publishers “and is rushing to build a portfolio of some 10,000 electronic books,” Reuters noted, adding that the company projects acquiring 90% of Brazil’s e-book market, “in part because many Brazilians already download content from its site using readers they bought abroad.” Brazil currently accounts for 1% of global traffic to Amazon’s websites. 

Brazil is a country “where labor costs are high, taxes complex and less than 20% of roads are paved…. local competitors say Amazon would first have to prove it can compete in the challenging environment,” Reuters wrote.  

“They are going to face the same kind of problems we always had,” said Sergio Herz, director of Livraria Cultura, which has bookstores in a dozen locations. “Until now they were in heaven and we were in hell. Come to hell with us, Amazon.”


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