Amazon figures and its commitment to investment in Mexico

02/01/2020

Amazon lockers have been an option for the retail giant's deliveries in the United States and other countries like Spain for some time now, and will now be available to consumers in Mexico.

Amazon lockers have been an option for the retail giant's deliveries in the United States and other countries like Spain for some time now, and will now be available to consumers in Mexico. Image: Pixabay
Amazon lockers have been an option for the retail giant's deliveries in the United States and other countries like Spain for some time now, and will now be available to consumers in Mexico. Image: Pixabay

One of the great challenges that eCommerce has is logistics, mainly because we have to wait for the courier at home, without going out, without an exact delivery time and without the possibility of choosing the day or time when we can be at home, simply waiting.

Amazon's lockers began operating this month of December, with the installation of 32 Hub Lockers, that is, containers like the ones that can be found at Correos de Mexico where the order will be deposited and secured with a unique code with which the product can be picked up.

This code is sent by the Amazon system, and includes the address and time of the location of the locker selected when the order is completed.

The first lockers of Amazon are installed in the colonies Roma, Cuauhtémoc, Del Valle, Hipódromo Condesa, Narvarte Poniente, Alamos, and Naples.

Likewise, during 2020 the retail giant promises to install around 400 more Hub Lockers in the country, and not only in Mexico City, since it is expected that Guadalajara and Monterrey will also have some of them.

This is an effective way to order online at the large marketplace, since it will be possible to pick up the order without having to wait for the courier service at home, at a time that is convenient for the buyer.

It is worth noting that the maximum time to pick up any package at the Hub Locker will be 3 days, because if it is not done within this time, the package will be returned and a refund will be given.

Amazon invests in Mexico

The e-commerce giant Amazon opens the doors of its third distribution center in Mexico, the largest in Latin America. With more than 100 thousand square meters, the new center located in Tepotzotlán, the State of Mexico, named Cedis, is Amazon's third investment in the State of Mexico.

Mexico has become in recent years a potential e-commerce market with the promise of a broad growth rate, online sales platforms have increased their numbers in sales due to the confidence, security and online convenience that the Mexican market is discovering.

International companies like Amazon, Mercado Libre, and Walmart are some of the fastest-growing in the country, but what about the smaller e-commerce platforms. How does Amazon's growth in Mexico benefit or affect? Alejandro Colin, vice president of Sales Enablement at Vtex, told NotiPress exclusively:

"We think that more than competing is to add efforts to increase the participation of online commerce in the country. Other countries smaller than Mexico have had a more accelerated development in this sector. Amazon's impulse in its investments encourages the rest of its competitors to redouble their efforts in basic systems such as SEO, quality content, aggregated services, faster deliveries, etc. and not just competitive prices."

According to Worldpay in its 2018 report on e-commerce in Mexico, this sector recorded profits of $18 billion dollars with a projection of $28 billion dollars by 2022. With these figures, in 2019 Mexico is positioned as one of the regions with the highest record of online shopping activity. Currently ranks third after Brazil and Argentina.

What does this mean for Amazon

Recently, Amazon celebrated Prime Day 2019 worldwide, however, the case of Mexico was special because during the sale, the region broke the record of sales in the two days of the event (July 15 and 16) with the purchase of 175 million products among which stood out electronic items such as the Nintendo Switch, the monitor HP 22w Borderless, Echo Dot, Echo Show 5, Fire TV Stick Basic Edition. Some of the categories most consumed by prime users during the sale were books, beauty, clothing, footwear, and accessories.

Now, the company opens its third center in Mexico with the size of 18 soccer fields and total investment in the State of Mexico of $125 million dollars in conjunction with the two centers in Cuautitlán Izacalli and the new one in Tepotzotlán. Regarding Amazon's investment, Colin said: "the investment denotes the potential that has the Mexican market and is willing to continue investing and make great differentials in its service because it has not yet reached the maturity of the market and because there are some steps to reach to be in the same position as in other markets.

The center will generate at least 1,500 jobs and its construction took a total of nine months. Despite rumors of yet another center in Queretaro, no Amazon Mexico executive said it is true. At the moment, there is no more speculation of another Cedis in national territory, but it is not a discarded idea, but a decision to be taken by continuing the growth of this platform in Mexico that to date has reported revenues in international trade for more than 233 billion dollars.

For now, Amazon will continue to prioritize customer service and Mexico will make its way as one of the main consumers in e-commerce platforms to encourage investment in these new business models. As explained by Alejandro Colin, an expert in the subject:

"Generally markets mature because the customer matures and demands other services or because the competition improves and you can not be left behind. We believe that in Mexico the two points converge. Amazon's actions push large and small competitors to join the digital era and improve all services, in addition to opening more possibilities for different brands to reach the consumer more assertively through the digital channel, in general, is a virtuous circle where the winner should be the end consumer."

By Mexicanist