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Amazon expanded in Brazil, fueling the e-commerce boom launched by COVID-19



SAO PAULO (Reuters) – Amazon AMZN.O said on Monday it opened three more logistics centers in Brazil to take advantage of the COVID-19 pandemic that has caused e-commerce in South America’s largest economy.

FILE PHOTO: The Amazon logo is drawn inside the company’s office in Bengaluru, India. Photo taken April 20, 2018. REUTERS / Abhishek N. Chinnappa

The new units were operating in the states of Minas Gerais and Rio Grande do Sul and the capital city of Brasilia. They increased the number of Amazon logistics centers in Brazil to eight, expanding its reach across the vast country.

The expansion, adding 75,000 square meters (807,000 square feet) of distribution space, is Amazon̵

7;s largest scale since it started operations in Brazil in 2012. It will create 1,500 direct, corporate jobs. said in a statement.

Alex Szapiro, Amazon’s chief executive in Brazil, said the new centers will allow the company to instantly increase the number of cities where Amazon Prime customers can pick up within two business days from 400 to more. 500.

“Brazil is the country with the fastest growing Amazon Prime subscribers,” Szapiro told Reuters, referring to the company’s loyalty program, launched in Brazil last September.

In recent months, thousands of Brazilian businesses have turned to e-commerce platforms due to social segregation and door lock measures.

Despite the gradual easing of measures, the move to digital sales continues.

Last week, MercadoLibre Inc MELI.OThe Latin American e-commerce leader, announced that their net sales in the region grew by almost 150% in the third quarter, measured in local currency.

MercadoLibre’s Brazilian operations, which account for more than half of its total business, more than doubled.

Other companies in Brazil, including Via Varejo VVAR3.SA, Medium score PCAR3.SA and The Luiza Magazine MGLU3.SA, is buying logistics startups to go with the e-commerce wave.

Reported by Aluisio Alves, Edited by Rosalba O’Brien


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