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Amazon Mega-Warehouse in Mexico!

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Amazon in Mexico

Amazon in Mexico

Forget that Amazon wants a new mega-warehouse in America. Now, Amazon is planning to open a mega-warehouse near Mexico City.

A giant 1-million-square-foot warehouse — 93,000 square meters — will be built in Tepotzotlán, about 35 miles north of the Mexico City.

This will triple the size of the Amazon’s current distribution space in Cuatitlán Izcalli, where the company has two dispatch centers.

The giant mega-warehouse is expected to be completed sometime next year. Its location will enable easy access to Mexico’s biggest consumer market but it could also be used to ship products to the United States.

This mega-site will be able to store about 15 million products including bulky items such as furniture. One million deliveries a day can be made and it will give jobs to 2,000 to 3,000 people in Mexico.

Now, American expats living in or visiting Mexico will have full access to Amazon products in Mexico.

Despite being relatively new in Mexico, Amazon has grown rapidly and is now the third largest online retailer in the country, with sales $253 million last year. Before the launch of its website in 2015 its presence in Mexico was limited to the sale of Kindle e-readers and e-books—items that could be easily downloaded online.

E-commerce has grown steadily over recent years in Mexico but matching the kind of success Amazon has had in the U.S. may be more difficult than in America.

Some consumers are skeptical about the safety and certainty of buying online while many others in Mexico don’t have credit cards, except for American expats. Currently, online shopping in Mexico accounts for just under 3% of total retail sales compared with more than 10% in the U.S.

However, those figures along with a population in excess of 120 million gives ample room for growth and some analysts say that Amazon is prepared to take a risk in order to compete with other online retailers such as Chinese-owned Alibaba, with whom the Mexican government just signed an agreement. Which is more good news for American expats.

Amazon, in Mexico, is expanding its product lines, offering faster delivery times and making purchasing as secure as possible in Mexico. Again, good news for American expats in Mexico!

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