Amazon figures and its commitment to investment 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.

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. Image: Pixabay
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. Image: Pixabay

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 Agencies

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