American marketplace giant Amazon says it will open a new distribution centre in Brazil. It will be located in the northeastern state of Pernambuco. The new warehouse is the second Amazon warehouse in Brazil. The marketplace hops to strengthen its logistical infrastructure to speed up deliveries and expand its footprint.
The move comes almost a year after the e-commerce giant from the United States launched its first in-house fulfilment and delivery network in Brazil. This, initially, posed a challenge to local retailers and other international players like Mercado Libre. It is yet unclear what influence the new logistics warehouse will have. The release of this news shortly follows on the introduction of Amazon’s Prime subscription service offering unlimited nationwide free shipping to Brazilian consumers.
The marketplace has yet to disclose how much it is investing in the new facility. It will be located in Cabo de Santo Agostinho, a municipality not far from Recife. Amazon said it expects to kick off operations in the first half of 2020, reducing minimum delivery timing to two working days.