Amazon on Thursday announced it will open a new distribution centre in northern Brazil, as it looks to step up its delivery time and logistics infrastructure in Latin America’s largest economy.
Although it’s not yet known how much Amazon is investing in the facility, the centre will be located in Cabo de Santo Agostinho, an area not far from Recife.
The US ecommerce giant said it expects to begin operations in the first half of 2020, aiming to reduce minimum delivery timing to two working days.
“Today’s announcement marks our long-term commitment with Brazil and, mostly, with our customers all over the country,” said Amazon’s Brazilian country manager Alex Szapiro in a statement.
The announcement comes almost a year after Amazon launched its first fulfilment and delivery network in Brazil, competing with the likes of Mercado Libre and Magazine Luiza SA.
While Brazil spans an area larger than the continental US, it has a high level of urbanisation with 87.8 per cent of the population residing in urban and metropolitan areas.
It also has one of the fastest growing ecommerce markets in the world. However, local competitors are already well established.
Mercado Libre will be the player for Amazon to beat: founded 20 years ago in Buenos Aires, the company has a large logistics operation, online payment services and 12 million-plus vendors selling more than 260 million items.
The Argentinian retailer plans to spend more than BRL 3 billion (£0.55 billion) next year on financial services and opening more distribution centres that will allow it expand next-day delivery to at least 16 cities.