Amazon always comes up with something new to attract its customers. In such a situation, this time also the company is expected to benefit from one-day delivery. This can increase the sales of the company.
Amazon will benefit from one-day delivery
Amid fierce market competition in Latin America’s largest economy, e-commerce giant Amazon.com Inc (AMZN.O) on Wednesday began offering free one-day delivery in 50 cities to its Brazilian Prime customers. The move comes at a time when rivals such as MercadoLibre (MELI.O) and Magazine Luiza (MGLU3.SA) are investing heavily to speed up delivery and acquire customers.
Amazon’s initiative is already available for Prime customers in the US, Canada and United Kingdom markets, but in Brazil, the service has been launched two years after the launch of Prime. Previously, Prime users in Brazil had free two-day shipping with the option to pay extra for one-day delivery.
Mariana Roth, head of Amazon Prime in Brazil, told Reuters in an interview, “Last year we have developed better infrastructure with new distribution centers, especially in the country’s capital cities, and this is what makes one-day delivery possible. helps to create.” E-commerce competition is fierce in Brazil, home to an estimated 105 million e-commerce buyers. Amazon ranks fourth in the country in terms of monthly website visits, behind regional and domestic competitors MercadoLibre, Americanas (AMER3.SA) and SoftBank-backed OLX. This has been disclosed by payments company Ebanx.
Logistics is a particularly difficult part of Brazil’s e-commerce, a continental-sized country with weak infrastructure. Earlier this year, MercadoLibre announced an investment of 10 billion reais ($1.91 billion) in logistics in Brazil, where, as of June, it is experimenting with same-day shipping in some cities.
Roth did not say here how many new Prime users the company will be able to attract with this initiative. Apart from this, he also did not say how much revenue the company is predicted to attract.
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