Amazon continues to establish comprehensive logistics systems in various markets.
No matter in which e-commerce market, Amazon regards logistics as its trump card.
Since 2015, Amazon has invested over 52 billion pesos (equivalent to 3 billion US dollars) in its logistics business in Mexico, aiming to attract shoppers from the second largest economy in Latin America and gain more market share through high-quality logistics.
Specifically, since its launch in Mexico, Amazon has continuously strengthened its construction of logistics infrastructure. As of now, Amazon has 11 order fulfillment centers in Mexico, including 5 located in the state of Mexico, as well as approximately 40 warehouses and 28 distribution centers.
Supported by a strong logistics network, Amazon has been able to provide daily delivery services to 10 different cities, and the next day delivery service has also spread to 80 Mexican cities.
It is worth mentioning that in September of this year, Amazon opened the largest last mile delivery center in Latin America, the Amazon DXX1, in Mexico. The center covers an area of approximately 30000 square meters and can enhance end-to-end delivery services for approximately 22 million residents of Mexico City. In addition, Amazon’s MEX3 operations center in Mexico has also shown outstanding performance. The center covers an area of 100000 square meters and can store 2 million large-sized products at the same time.
The Mexican market attracts major e-commerce giants to enter
It is not surprising that Amazon values the Mexican e-commerce market so much.
In recent years, due to various factors such as the pandemic, the e-commerce market in Latin America has experienced unprecedented development. According to data from Payment and Business Intelligence (PCMI), the transaction volume of e-commerce in Latin America is expected to exceed $509 billion in 2023. From 2023 to 2026, the growth rate of e-commerce in this market is expected to remain above 21%, ranking first in the world in terms of expansion speed.
As the hottest e-commerce market in Latin America, Mexico’s development potential should not be underestimated. According to Statista’s data, the total revenue of the Mexican e-commerce market is expected to reach $37.81 billion in 2023, and it is expected to exceed the $60 billion mark by 2027.
Supported by favorable market conditions and the support of its own efforts, Amazon has also successfully won a place in the Mexican market. According to data, in November 2023, Amazon ranked second in monthly traffic in Mexico, second only to the leading player Mercado.
Where there is a market, there is competition. Mexico’s e-commerce has unlimited potential, which naturally attracts other platforms to enter and dig gold. Not to mention Meikeduo, which slightly surpasses Amazon in platform traffic data, there are powerful opponents in the Mexican e-commerce track.
For example, WalMart, which has made remarkable achievements in deeply plowing the Mexican market and achieved growth in both revenue and profit. It is reported that in the third quarter of this year, Wal Mart’s net profit in Mexico reached 13.632 billion pesos (about $782 million), up 12.2% year on year, and its total revenue in the quarter also reached 213 billion pesos (about $11.58 billion), up 7.7% year on year.
From this, it can be seen that although Amazon has achieved impressive results in the Mexican market, there are still many challenges left for it. We believe that in the future, Amazon will continue to sprint and submit a more impressive report card in the Mexican market.
If you are considering expanding into new markets, XCJD Logistics can assist you. As an experienced logistics supplier, we will provide assistance to you at every step through professional logistics knowledge, visibility, and communication skills. Sea freight, air freight, express delivery, procurement in China, product testing, warehousing, supplier selection, one-stop service, contact us immediately for consultation
Choosing the Best Massage Table for Your Practice
How to choose cheap tattoo equipment
