#170 – Making Millions in Latin America, Without Amazon – Aleksejs Leal
In 2023 Latin America e‑commerce turnover topped US$100 billion, with over 60 % of shoppers favoring regional platforms like MercadoLibre and Amazon holding under 15 % share. Aleksejs Leal’s D2C approach generated roughly US$5 million in two years, cut shipping costs by 30 % and delivered a 3.5× ROAS on Spanish/Portuguese ads.
Overview
Aleksejs Leal constructed a multi‑million‑dollar e‑commerce business across Latin America without depending on Amazon’s marketplace. By leveraging regional marketplaces, direct‑to‑consumer (D2C) sites, and localized logistics, he captured higher margins and faster deliveries. Sellers eyeing the continent’s rapid online growth should study his playbook to avoid Amazon’s fees and to build a locally resonant brand.
Key Points
- Regional market size — E‑commerce turnover in Latin America topped US $100 billion in 2023, driven by expanding internet access and mobile shopping.
- Marketplace preference — More than 60 % of online shoppers favor home‑grown platforms such as MercadoLibre, B2W and Linio, leaving Amazon with under 15 % market share.
- Revenue from D2C — Leal’s own‑website and social‑media stores generated roughly US $5 million in two years, proving the profitability of brand‑first sales.
- Logistics cost reduction — Partnering with local fulfillment firms cut average shipping expenses by about 30 % and trimmed delivery windows to 48 hours.
- Advertising efficiency — Spanish‑ and Portuguese‑language campaigns on Facebook and TikTok delivered a 3.5 × return on ad spend compared with generic English ads.
- Tax compliance — Working with a regional tax advisory prevented double‑taxation issues and kept operations compliant in Brazil, Mexico and Colombia.
How Leal’s Latin‑American D2C System Works
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Market research & platform selection — Leal starts by mapping country‑level search volumes, average disposable income and the dominant marketplace. Example: In Brazil he discovered that 70 % of fashion buyers shop on MercadoLibre, so he launched his first product line there while simultaneously building a Shopify store for brand control.
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Localized product positioning — He rewrites titles, descriptions and images in Spanish or Portuguese, inserting culturally relevant keywords. Example: A “water‑resistant backpack” became “Mochila impermeable para aventuras,” a phrasing that lifted organic traffic by roughly 45 % in the first month.
Analysis & Recommendations
Why This Matters
Sellers can capture higher margins by shifting from Amazon to localized D2C channels, as Leal’s case shows a 30 % reduction in logistics costs, 48‑hour delivery windows, and a 3.5× return on ad spend, all while operating in a $100 B market.
Key Takeaways
- Latin America e‑commerce turnover reached US$100 billion in 2023.
- More than 60 % of online shoppers prefer local marketplaces; Amazon’s market share is under 15 %.
- Leal’s D2C sales produced about US$5 million in two years and reduced shipping expenses by roughly 30 %.
- Spanish‑ and Portuguese‑language ads on Facebook/TikTok delivered a 3.5× ROAS versus generic English ads.
Recommended Actions
- →Use Helium 10 Xray and Google Trends to identify high‑value markets (e.g., Brazil for apparel, Mexico for electronics) and log the data in a spread...
- →Set up a country‑specific Shopify store, translate product titles/descriptions, price in local currency, and enable local payment methods via Shopi...
- →Contract with 3PL providers in São Paulo, Mexico City, and Bogotá; then configure shipping rates in Seller Central > Settings > Shipping Settings t...
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