Exchange Rate Pass-Through to Brazilian E-Commerce Prices

E-commerce has experienced significant growth and is becoming more relevant to economies. The exchange rate can have notable implications on e-commerce prices, and this relationship is of great interest to consumers and retailers transacting online. Brazil is prominent among other emerging countries in issues relating to e-commerce. This article analyzes the relationships between the exchange rate and e-commerce prices in Brazil. The results reveal that: (a) there is an incomplete exchange rate pass-through to Brazilian e-commerce prices; (b) there is temporal precedence of the exchange rate in relation to these prices; (c) there is the possibility of arbitraging online purchases based on exchange rate variations. This article contributes to understanding the e-commerce price behavior in an emerging country. The evidence can support buyers interested in arbitrage. JEL Classification F31, F41, L81