Amazon accelerates expansion in Mexico with 19 billion pesos investment

The epidemic prompted Mexico's e-commerce market to grow by 81% in 2020, with Amazon becoming one of the biggest beneficiaries.

Data shows that Amazon's net profit in Mexico increased by 35% in the first nine months of 2021. However, due to slowing online sales and increased shipping costs , Amazon's profit only increased by 3% in the third quarter .

It is understood that sales of small and medium-sized enterprises ( SMEs) account for 60% of Amazon's total sales in Mexico. Amazon currently offers 50 million items in Mexico , of which 20 million are Prime items that support next-day delivery.

Currently, Amazon has distribution centers in Mexico City, Mexico State, Guadalajara, Monterrey, Merida, Hermosillo and Tijuana, and covers 55 next-day delivery pickup points. In 2021 alone , Amazon opened four freight centers in the country, creating 2,500 jobs.

" About 40% of our sales will be generated in the last quarter of the year," said Jesus Elizondo, Amazon's director of operations in Mexico . To meet demand during the peak season , Amazon hired 4,000 temporary workers to deliver goods across the country.

During the peak season, the top products for Mexican consumers are electronics, clothing, accessories and home products , which receive discounts of 25% to 30%.

To date, Amazon has invested 19 billion pesos (over $900 million) in Mexico , with a 3 billion pesos impact on Mexico ’s GDP, and operates 10 fulfillment hubs in Yucatán, Sonora, Ecuador, Nuevo León, and Jalisco.

" Amazon is for everyone because we have a variety of payment methods, including credit cards, debit cards, Amazon Cash, and starting in November we can pay with vouchers , " said Jesus Elizondo.

“It is our responsibility to continue to invest in our infrastructure so that we can deliver products faster while providing them with a better selection of products,” added Jesus Elizondo.

Amazon

Mexico

Peak Season