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Amazon will invest to cut delivery times in Mexico- Grupo Milenio

A decade ago the outline of what would be the operations of Amazon in Mexico; Today the e-commerce giant has accumulated an investment for 110 billion pesos and aims to continue injecting capital into the market, he assured Pedro Huerta, country manager of the company.

The most prominent player in the sector in the country participated in the CEO Dialoguea meeting between 240 company executives from Mexico and the United States; According to Marcelo Ebrard, Secretary of Economy, the company shared its intentions to continue making investments.

Huerta pointed to MILLENNIUM that the figure they gave to the Mexican authorities includes the capital accumulated in its nine years of operations and the 85 billion pesos which the Amazon Web Services (AWS) division announced at the beginning of February.

“What we did reconfirm to the secretary in different meetings is the reinforced commitment we have for Mexico.”

Only during 2023, the firm invested 28 billion pesos in the national market; Its infrastructure currently involves 13 shipping centers, 24 delivery stations, two offices for AWSamong others.

Throughout all these years, the American company has generated 10 thousand direct jobs and around 40 thousand indirect and although its commitment to the country continues, the competition for the final route of the parcel (last mile) continues to be its focus to maintain its leadership.

Last year, Mexico led the growth of the e-commerce; The value of its sales totaled 629,300 million pesos and in a context in which the number of players continues to increase, the largest competitor in the sector plans to bet on cut delivery time to your clients.

“We constantly evaluate our investments in Mexico both for the growth we are seeing but also a little for the challenges such as a logistics network or security issues. It is important for us to create solutions for consumers on how to overcome these challenges. In the logistics part, we have strategic alliances with regional companies that are experts in delivering in those regions that know those paths very well.
The speed of delivery to the final consumer is going to be a fundamental factor for Amazon to be a purchasing option for all Mexicans. Not only in big events.”

To achieve this goal, Huerta assured that they have focused their capital on having more shipping centers and more local distribution locations (Amazon Hub Delivery) or with deliveries with third parties (AmazonFlex).

Delivery time is one of the factors of greatest competition in the channel/Archive
Delivery time is one of the factors of greatest competition in the channel/Archive

“We think long term and big. There are topics such as the continuous improvement of delivery speed or the selection of items because we need more products at the best prices. We are always alert to developments and the fact that there is very dynamic competition in the ecommerce sector is a great sign.

It motivates us and tells us that we are in the right market.
“We are confident that the value proposition is resonating with the consumer and the speed of delivery we hope will be better.”

The business has also come with Prime Videoyour service streaming which since April incorporated the part of advertising in the Mexican market.

In the second quarter of the year, the Advertising Services division gave the company income of 12 thousand 771 million dollarsan increase of 20 percent compared to the same period last year, the company reported. This performance has also meant an opportunity

“We are happy with the development of the advertising business that we have developed two years ago worldwide. We are happy with the decision of companies to see us as a possibility to promote themselves. It is a good opportunity to continue investing in it.”

Last year, Amazon invested 28 billion pesos in Mexico/ Pixabay
Last year, Amazon invested 28 billion pesos in Mexico/ Pixabay

What are the states in which Amazon has invested the most in Mexico?

Three entities concentrate the company’s most important investments in the country: Mexico CityState of Mexico and Querétaro.

The capital adds 50 billion pesos since Amazon operations started in the area; The figure includes what is allocated to infrastructure and compensation for our employees. According to its report, 3 thousand direct jobs and 18 thousand indirect jobs have been generated in the state.

In it State of Mexico Their investments total 27,500 million pesos and they have 3,150 direct collaborators; Meanwhile, they have generated close to 10 thousand jobs indirectly.

Queretaro It amounts to an investment of 7,500 million pesos and has more than 300 direct jobs and 4,000 indirect jobs.

In addition, they have allocated capital in Nuevo León (4 billion pesos), Guanajuato (3,500 million pesos), Jalisco (2,500 million pesos), Yucatán (1,500 million pesos), Sonora (1 billion pesos), Baja California (one billion pesos) and Puebla (250 million pesos).

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