The online marketplace Mercado Libre stated that it will invest 175 million dollars in logistics, shipping and marketing in Mexico, adding a total of 275 million if previous investments are considered. With this they seek greater weight in the second economy in Latin America , where their great rivalry with Amazon has been intensifying. Mercado Libre promises to invest 175 million more dollars in the country Mercado Libre , a firm that began its operations in Argentina, reported that this investment will be added to the opening in February of two distribution centers in Mexico , which employ 3 thousand people, which had a value of 100 million. [Tweet “. MercadoLibre announced an investment of 175 million dollars in Mexico; We will tell you the details”] Online and brick-and-mortar businesses have been accelerating their investment in eCommerce in Mexico , putting pressure on retailers to keep up with efficient logistics, stocked inventories, and fast, hassle-free shipping.
Marcos Galperin, founder and chief executive of Mercado Libre, stated that Mexico is one of the countries with one of the greatest growth in the eCommerce industry . The intention is to accelerate the pace of this progress. Strong competition in eCommerce Mercado Libre is in direct and very close competition with Amazon , as both companies seek to win in the area of eCommerce in Mexico. The Argentine Email Marketing List firm obtained twice as much traffic in Mexico as Amazon last year , according to the digital measurement company comScore. But market research firm Euromonitor found that Amazon surpassed Mexico in business-to-consumer (B2C) sales by $13 million last year . Mercado Libre reported revenues of $437 million in February , 70% more compared to the same period last year. Amazon has made significant investments in Mexico since its official entry into the country in 2015.
It has also been making more aggressive moves in other areas of Latin America, expanding its operations in Brazil, for example, where it plans to stock and sell a wide variety of products. Some investors believe that Amazon is not yet a threat to Mercado Libre , considering the traffic data already mentioned, since 47% of people in Latin America who bought online did so on Mercado Libre, compared to only 17% on Amazon. according to comScore data. The race to attract consumers continues , with other players looking to remain relevant in this competition. For example, retailer Fomento Economico Mexicano (FEMSA) said it will expand a pilot program that uses Oxxo convenience stores as package delivery locations. This expands an alliance between the American eCommerce company and the network of more than 16,700 stores. It also points to greater investment by physical businesses in eCommerce , which is a fraction of retail sales in Mexico, but is thought to have great growth potential.