Amazon.com, Inc. (NASDAQ:AMZN) is tipping its sombrero as the online retail giant makes a major push into Latin America. Amazon officially announced Tuesday that it is opening a new online storefront in Mexico as part of efforts to increase sales outside the United States.
Amazon Says ‘Hola!’ to Mexico
On Tuesday, Amazon.com.mx will begin to sell millions of products on the Spanish-language web portal. Some of the goods to be sold include consumer electronics, software, movies, jewelry, tools and much more. Previously, Amazon only sold Kindle ebooks for Mexican customers as of 2013.
Amazon will offer free shipping on purchases of at least 599 pesos ($38). Or, they have can have their items delivered to any of the hundreds of pick-up locations across Mexico.
Moving forward, Mexican consumers will be permitted to shop online or on mobile devices using the Amazon app available for download via Google Play and iTunes.
Amazon was pleased to announce, too, that it’s unveiling three Kindle devices on its Mexican online retail outlet: the brand new Kindle Voyage, the new Kindle Paperwhite and the MXN 1,499 Kindle.
Furthermore, Amazon is establishing its online selling service and fulfillment for Mexican businesses and sellers.
Our mission at Amazon is to be Earth’s most customer centric company, and we strive to be the destination where people can find anything they want to buy online,” said Alexandre Gagnon, Director, International Expansion, Amazon, in a statement. “With Amazon.com.mx, customers in Mexico will find more of what they want – the largest selection in the country, low prices, fast and reliable delivery, all with a trusted and convenient experience.”
Amazon’s expansion plans were reported last week but Tuesday marks the formal announcement and opening of the new website.
This comes as Amazon debuted Amazon Prime in the United Kingdom.
Amazon’s Potential for Growth
Although Amazon will be competing with several other online retail outlets, including Inditex, MercadoLibre and Wal-mart, there is plenty of room for growth in Mexico’s booming e-commerce industry.
The country’s e-commerce sector is soaring at a rate of 34 percent per year. It was also reported that Mexico could experience an increase in sales of 150 percent over a five-year period from 2013 to 2018 ($2.2 billion to $5.5 billion).
With approximately 120 million citizens, the number of Mexican online shoppers is only projected to skyrocket by 114 percent from 8.4 million (2013) to 18 million (2018). The latest survey suggests that three-quarters of the Mexican population made at least one online purchase in the first quarter of 2015.
Financial analysts say Mexico has diversified its economy since the financial crisis and poised for considerable growth moving forward.
Mexico is rebounding from the global recession and is now the second biggest Latin American (LATAM) economy behind Brazil,” wrote Ekos Global in a report. “Despite a number of clear challenges, Mexico shows tremendous opportunity online: growth in 2014 will be in excess of 20% and mobile is taking off.”
As the Latin American population explodes and e-commerce grows, many believe Amazon’s entrance into Mexico was a gateway into the entire Latin American market.