E-commerce giant Amazon.com Inc began offering free one-day messaging to its subscribers in Brazil on Wednesday in 50 cities across the country, amid growing competition in Latin America’s largest economy.
This initiative comes at a time when competitors such as Magazine and Luiza Magazine are investing large sums to speed up the delivery of packages and products in order to gain more customers.
The Amazon initiative, which already exists for Prime subscribers in the US, Canadian and UK markets, comes two years after it was first launched in Brazil.
Previously, Prime users in Brazil had access to free two-day shipping with the option to pay more for one-day delivery.
“In the past year, we have developed better infrastructure, especially in the capitals of the country with new distribution centers, and this has helped make one-day delivery possible,” Mariana Roth, director of Amazon Prime, told Reuters. interview.
Competition from e-commerce is strong in Brazil, home to about 105 million online product buyers.
Amazon ranked fourth in the country in terms of monthly website visits, after regional and national competitors MercadoLibre, Americanas and OLX, according to a ranking compiled by payments company Ebanx.
Logistics is a particularly complex part of Brazilian e-commerce, in a country the size of a continent and with an uneven infrastructure.
Earlier this year, MercadoLibre announced an investment of R$10 billion (US$1.910 million) in logistics in Brazil, where, as of June, it was testing same-day shipments in some cities.
Roth did not specify how many new Prime users the initiative was expected to attract, or how much revenue it was expected to generate for the company.