Amazon expands in Brazil, riding e-commerce boom set off by COVID-19 distancing

By: |
November 09, 2020 3:31 PM

Amazon said on Monday it had opened three more logistics centers in Brazil to take advantage of the boost the COVID-19 pandemic has given to e-commerce in South America's largest economy.

CAIT Accused Amazon for indulging into various serious contraventions of FDI Policy of the Government and Foreign Exchange Management Act FEMA, confederation of all india traders"We are also delighted that customers from over 19,000 pin codes shopped for products that they need from their SMBs on," Pranav Bhasin, Director, MSME and Selling Partner Experience at Amazon India, said. (Photo source: Reuters)

Amazon said on Monday it had opened three more logistics centers in Brazil to take advantage of the boost the COVID-19 pandemic has given to e-commerce in South America’s largest economy. The new units are already operating in the states of Minas Gerais and Rio Grande do Sul and the capital city of Brasilia. They increase the number of Amazon logistics centers in Brazil to eight, expanding its reach to all corners of the vast country.

The expansion, which adds 75,000 square meters (807,000 square feet) of distribution space, is Amazon’s biggest since it began operating in Brazil in 2012. It will create 1,500 direct jobs, the company said in a statement. Alex Szapiro, Amazon’s chief executive in Brazil, said the new centers will allow the company to immediately raise the number of cities where Amazon Prime customers can receive deliveries within two business days to over 500 from 400.

“Brazil is the country with the fastest growth in Amazon Prime subscriptions,” Szapiro told Reuters, referring to the company’s loyalty program, which was launched in Brazil in September last year. In recent months, thousands of Brazilian businesses have migrated to e-commerce platforms as a result of social distancing measures and lockdown measures. Despite the gradual easing of the measures, the migration to digital sales has continued.

Last week, MercadoLibre Inc, Latin America’s e-commerce leader, announced that its net revenue in the region soared nearly 150% in the third quarter, measured in local currencies. MercadoLibre’s operation in Brazil, which accounts for more than half of its total business, more than doubled. Other companies in Brazil, including Via Varejo, GPA and Magazine Luiza, are buying up logistics startups to ride the same e-commerce wave.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Pre-packaged insolvency resolution under IBC for MSMEs: Challenges that may arise in implementation
2M&A is part of how we will seek growth in this ecosystem: Mayank Kumar, co-founder, upGrad
3Jewellery traders see big setback on Akshaya Tritiya, Eid due to lockdown impact on festive sales