Amazon (AMZN - Free Report) plans establish a new distribution center in Brazil in a bid to ramp up initiatives to strengthen e-commerce presence in the country.
The new facility, which will be located in Cabo de Santo Agostinho municipality, will mark the company’s second such facility in the country.
The company aims at strengthening logistics system in the country. This will enable the company to accelerate deliveries. Amazon strives to reduce its minimum delivery time to two working days.
The latest move bodes well for its constant efforts toward bolstering delivery infrastructure. The new distribution center is expected to start operating from first-half 2020.
Further, rapid deliveries will help Amazon enhance shopping experience, which in turn will strengthen customer base in the country.
Brazil Holds Promise
The latest initiative of Amazon is likely to benefit the company as Brazil is witnessing rapid increase in Internet usage.
Per a report from eEbit Webshoppers, revenues in the e-commerce space of Brazil exhibited double-digit growth of 12% in 2018 for the first time since 2015.
Further, according to a report from Statista, revenues in this particular market are expected to reach $15.3 billion in 2019. Further, revenues are expected to achieve $16.9 billion by 2023, witnessing a CAGR of 2.5% between 2019 and 2023.
User penetration in 2019 and 2023 is projected at 60.5% and 66.5%, respectively.
This immense growth potential of the market can be attributed to rising demand for apparel in the fashion world.
Amazon’s Growing Initiatives
We believe Amazon is well-poised to capitalize on the prospects present in the e-commerce space of Brazil on the back of its endeavors.
Apart from the latest move, the company initiated direct sales of merchandise by establishing its first in-house fulfilment and delivery network in Brazil in the beginning of the year.
The company offers various products that include at least 200,000 books, via its direct sales platform. Moreover, merchandise offerings under 11 categories from more than 800 sellers are in sync with the company’s strategy of growth.
Further, Amazon has recently rolled out Prime Subscription services in the country. Notably, Prime members in Brazil have now access to unlimited nationwide free shipping and a maximum 48-hour delivery time in more than 90 municipalities. Products eligible for Prime delivery include all types of goods ranging from clothes to electronics.
In addition to these benefits, the Prime subscribers have access to movies, music, and digital books and 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.
Moreover, Amazon’s strengthening e-commerce capabilities are likely to pose a serious threat to the local retailers of Brazil.
Currently, Amazon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Amazon (AMZN - Free Report) plans establish a new distribution center in Brazil in a bid to ramp up initiatives to strengthen e-commerce presence in the country.
The new facility, which will be located in Cabo de Santo Agostinho municipality, will mark the company’s second such facility in the country.
The company aims at strengthening logistics system in the country. This will enable the company to accelerate deliveries. Amazon strives to reduce its minimum delivery time to two working days.
The latest move bodes well for its constant efforts toward bolstering delivery infrastructure. The new distribution center is expected to start operating from first-half 2020.
Further, rapid deliveries will help Amazon enhance shopping experience, which in turn will strengthen customer base in the country.
Brazil Holds Promise
The latest initiative of Amazon is likely to benefit the company as Brazil is witnessing rapid increase in Internet usage.
Per a report from eEbit Webshoppers, revenues in the e-commerce space of Brazil exhibited double-digit growth of 12% in 2018 for the first time since 2015.
Further, according to a report from Statista, revenues in this particular market are expected to reach $15.3 billion in 2019. Further, revenues are expected to achieve $16.9 billion by 2023, witnessing a CAGR of 2.5% between 2019 and 2023.
User penetration in 2019 and 2023 is projected at 60.5% and 66.5%, respectively.
This immense growth potential of the market can be attributed to rising demand for apparel in the fashion world.
Amazon’s Growing Initiatives
We believe Amazon is well-poised to capitalize on the prospects present in the e-commerce space of Brazil on the back of its endeavors.
Apart from the latest move, the company initiated direct sales of merchandise by establishing its first in-house fulfilment and delivery network in Brazil in the beginning of the year.
The company offers various products that include at least 200,000 books, via its direct sales platform. Moreover, merchandise offerings under 11 categories from more than 800 sellers are in sync with the company’s strategy of growth.
Further, Amazon has recently rolled out Prime Subscription services in the country. Notably, Prime members in Brazil have now access to unlimited nationwide free shipping and a maximum 48-hour delivery time in more than 90 municipalities. Products eligible for Prime delivery include all types of goods ranging from clothes to electronics.
In addition to these benefits, the Prime subscribers have access to movies, music, and digital books and 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.
Moreover, Amazon’s strengthening e-commerce capabilities are likely to pose a serious threat to the local retailers of Brazil.
Currently, Amazon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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