Exclusive: Amazon plans mega-warehouse for Mexico growth spurt

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Expected to be completed next year, the facility would triple Amazon’s distribution space in Mexico, home to around 120 million potential customers.
Amazon is a relative newcomer to Mexico; it opened its Kindle e-books site to Mexican customers in 2013 and expanded into sales of physical goods just two years ago.
Sharing a nearly 2,000-mile long border with the United States, Mexico would seem a logical place for Amazon to expand.
Amazon currently operates two distribution centers in Mexico totaling more than 500,000 square feet (46,452 sq m), Gil said.
Amazon’s global operations stretch across 14 countries including Latin America’s most populous nations, Brazil and Mexico.
Mexico City-based college student Daniel Arturo Munoz Castro, 20, said he has purchased board games, smartphone accessories and t-shirts on Amazon’s app.
“It’s not like other web pages when you order things, and perhaps they don’t arrive.
Still, Mexico’s vast wealth disparity and cultural differences lead some analysts to doubt whether Amazon can replicate a U.S. shopping concept.
Amazon backed off from its investments in China, for example, after struggling to understand the local markets, said Gene Munster, managing partner at Loup Ventures.
International trade analyst Claude Barfield of the American Enterprise Institute anticipates that even a compromise is unlikely to dash Amazon’s plans for Mexico.
To read the full article click on the link below:
http://feeds.reuters.com/~r/reuters/topNews/~3/ho_OoAkrEu8/exclusive-amazon-plans-mega-warehouse-for-mexico-growth-spurt-idUSKCN1BO1RD

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Exclusive: Amazon plans mega-warehouse for Mexico growth spurt

E

Expected to be completed next year, the facility would triple Amazon’s distribution space in Mexico, home to around 120 million potential customers.
Amazon is a relative newcomer to Mexico; it opened its Kindle e-books site to Mexican customers in 2013 and expanded into sales of physical goods just two years ago.
Sharing a nearly 2,000-mile long border with the United States, Mexico would seem a logical place for Amazon to expand.
Amazon currently operates two distribution centers in Mexico totaling more than 500,000 square feet (46,452 sq m), Gil said.
Amazon’s global operations stretch across 14 countries including Latin America’s most populous nations, Brazil and Mexico.
Mexico City-based college student Daniel Arturo Munoz Castro, 20, said he has purchased board games, smartphone accessories and t-shirts on Amazon’s app.
Still, Mexico’s vast wealth disparity and cultural differences lead some analysts to doubt whether Amazon can replicate a U.S. shopping concept.
Amazon backed off from its investments in China, for example, after struggling to understand the local markets, said Gene Munster, managing partner at Loup Ventures.
If the United States, Mexico and Canada raise the value of online purchases that can be imported duty-free as part of a modernized North American Free Trade Agreement, Amazon may be poised to reap rewards in Mexico.
International trade analyst Claude Barfield of the American Enterprise Institute anticipates that even a compromise is unlikely to dash Amazon’s plans for Mexico.
To read the full article click on the link below:
https://finance.yahoo.com/news/exclusive-amazon-plans-mega-warehouse-140306934.html

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