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Amazon (AMZN) Expands in Brazil With New Logistics Centers
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Amazon (AMZN - Free Report) has opened new logistics centers in Brazil in a bid to ramp up initiatives to meet the rising e-commerce demand caused by the COVID-19 pandemic.
The new facilities — already operational in the states of Minas Gerais, Rio Grande do Sul and the capital city of Brasilia — will expand the company’s facilities to eight in the country.
The latest move bodes well for Amazon’s constant efforts to capitalize on the booming e-commerce market. The demand for online goods is much more now owing to COVID-19-led social distancing protocols and rising fears of contracting the virus.
Further, the company aims at strengthening logistics system in the country. This will enable it to accelerate deliveries. Amazon strives to reduce its minimum delivery time to two working days.
The latest initiative of Amazon is likely to benefit the company as Brazil is witnessing a rapid increase in Internet usage.
In recent months, many businesses in Brazil have migrated to e-commerce platforms due to social distancing measures for curbing the pandemic’s spread. This will further expand e-commerce operations in the country.
Further, according to a report from Statista, revenues in this particular market are expected to reach $21.2 billion in 2020. Further, revenues are expected to expand to $31.5 billion by 2025, witnessing a CAGR of 8.2% between 2020 and 2025.
Per Statista, the e-commerce market's largest segment is Electronics & Media, with a projected market volume of $5.76 billion in 2020.
This immense growth potential of the market can be attributed to rising demand for electronics due to COVID-19-led work-from-home and learn-from-home trends.
Focus on Brazil Continues
Amazon started operations in Brazil in 2012 with e-books. In 2014, the company expanded operations therein with Kindle devices, and gradually with other products as well as services.
Apart from the latest move, Amazon rolled out Prime Subscription services in the country last year. Notably, Prime members in Brazil now have access to unlimited nationwide free shipping and a maximum 48-hour delivery time. Products eligible for Prime delivery include all types of goods ranging from clothes to electronics.
The company initiated direct sales of merchandise by establishing its first in-house fulfilment and delivery network in Brazil in the beginning of 2019.
The company offers various products that include at least 200,000 books via the direct sales platform. Moreover, merchandise offerings under 11 categories from more than 800 sellers are in sync with its strategy of growth.
In addition to these benefits, Prime subscribers have access to movies, music, and digital books as well as magazines on the Prime platform.
We believe all the above-mentioned efforts of Amazon will provide it a competitive edge against the likes of MercadoLibre (MELI - Free Report) , Alibaba (BABA - Free Report) and Walmart (WMT - Free Report) , which are also putting their best foot forward to bolster presence in the e-commerce space of Brazil.
We believe Amazon is well poised to capitalize on the prospects in the e-commerce space of Brazil on the back of its endeavors.
Moreover, Amazon’s strengthening e-commerce capabilities are likely to pose a serious threat to the local retailers of Brazil.
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
Amazon (AMZN) Expands in Brazil With New Logistics Centers
Amazon (AMZN - Free Report) has opened new logistics centers in Brazil in a bid to ramp up initiatives to meet the rising e-commerce demand caused by the COVID-19 pandemic.
The new facilities — already operational in the states of Minas Gerais, Rio Grande do Sul and the capital city of Brasilia — will expand the company’s facilities to eight in the country.
The latest move bodes well for Amazon’s constant efforts to capitalize on the booming e-commerce market. The demand for online goods is much more now owing to COVID-19-led social distancing protocols and rising fears of contracting the virus.
Further, the company aims at strengthening logistics system in the country. This will enable it to accelerate deliveries. Amazon strives to reduce its minimum delivery time to two working days.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Strong E-commerce Growth in Brazil
The latest initiative of Amazon is likely to benefit the company as Brazil is witnessing a rapid increase in Internet usage.
In recent months, many businesses in Brazil have migrated to e-commerce platforms due to social distancing measures for curbing the pandemic’s spread. This will further expand e-commerce operations in the country.
Further, according to a report from Statista, revenues in this particular market are expected to reach $21.2 billion in 2020. Further, revenues are expected to expand to $31.5 billion by 2025, witnessing a CAGR of 8.2% between 2020 and 2025.
Per Statista, the e-commerce market's largest segment is Electronics & Media, with a projected market volume of $5.76 billion in 2020.
This immense growth potential of the market can be attributed to rising demand for electronics due to COVID-19-led work-from-home and learn-from-home trends.
Focus on Brazil Continues
Amazon started operations in Brazil in 2012 with e-books. In 2014, the company expanded operations therein with Kindle devices, and gradually with other products as well as services.
Apart from the latest move, Amazon rolled out Prime Subscription services in the country last year. Notably, Prime members in Brazil now have access to unlimited nationwide free shipping and a maximum 48-hour delivery time. Products eligible for Prime delivery include all types of goods ranging from clothes to electronics.
The company initiated direct sales of merchandise by establishing its first in-house fulfilment and delivery network in Brazil in the beginning of 2019.
The company offers various products that include at least 200,000 books via the direct sales platform. Moreover, merchandise offerings under 11 categories from more than 800 sellers are in sync with its strategy of growth.
In addition to these benefits, Prime subscribers have access to movies, music, and digital books as well as magazines on the Prime platform.
We believe all the above-mentioned efforts of Amazon will provide it a competitive edge against the likes of MercadoLibre (MELI - Free Report) , Alibaba (BABA - Free Report) and Walmart (WMT - Free Report) , which are also putting their best foot forward to bolster presence in the e-commerce space of Brazil.
We believe Amazon is well poised to capitalize on the prospects in the e-commerce space of Brazil on the back of its endeavors.
Moreover, Amazon’s strengthening e-commerce capabilities are likely to pose a serious threat to the local retailers of Brazil.
Zacks Rank
Amazon currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>