Amazon said it had opened three more logistics centers in Brazil on Monday to take advantage of the boost that the Covid-19 pandemic has provided to e-commerce in the largest economy in South America.
The expansion, which adds distribution space of 75,000 square meters (807,000 square feet), is Amazon’s biggest since it started operating in Brazil in 2012. 1,500 direct jobs will be generated, the company said in a statement.
Alex Szapiro, chief executive of Amazon in Brazil, said the new centers would allow the company to immediately increase the number of cities where Amazon Prime customers will receive deliveries from 400 to over 500 within two business days.
As a result of social distancing initiatives and lockout measures, thousands of Brazilian companies have moved to e-commerce platforms in recent months. The migration to digital sales has accelerated, despite the incremental easing of the measures. MercadoLibre Inc, Latin America’s e-commerce pioneer, reported last week that in the third quarter, its net sales in the region soared almost 150 percent, measured in local currencies.
MercadoLibre’s operation in Brazil, which accounts for more than half of its total business, more than doubled. Other companies in Brazil, including Via Varejo, GPA and Magazine Luiza , are buying up logistics startups to ride the same e-commerce wave.