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Centro logístico de Amazon Jesús Elizondo

This is how Amazon seeks to avoid global supply chaos in the face of rising demand at the end of the year

Amazon has been one of the biggest beneficiaries of the Covid-19 pandemic E-commerce blew up 81% in Mexico; However, it is currently experiencing rising costs due to problems in the global freight and freight supply chain.

Jesús Elizondo, Regional Director of Amazon Mexico Operations explained in an interview with Forbes Mexico.

Read: Bottlenecks in supply chains: Quarantine in place companies in Mexico

During the first nine months of 2021, Amazon’s net profit grew 35%, although during the third quarter online sales slowed and advanced only 3% due to increased shipping costs.

Amazon Shipping Center. Photo: © Fernando Luna Arce.
amazon shipping center
Amazon Shipping Center. Photo: © Fernando Luna Arce.

However, the director confirmed that the Good End trade campaign, which runs from November 10-16, will allow them to offer 50 million products in Amazon’s catalog, of which 20 million are eligible for Amazon. Prime that guarantees next day delivery.

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Currently the e-commerce giant has Distribution centers in Mexico City, State of Mexico, Guadalajara, Monterrey, Merida, Hermosillo and Tijuana, which covers 55 locations that receive their packages the next day.

Amazon
Photo: © Fernando Luna Arce.
Amazon
Photo: © Fernando Luna Arce.

In order to meet the national demand for goodwill, the company employed 4,000 temporary employees to make deliveries across the country.

We have 6000 base employees and in this peak season we are hiring 4000 temporary employees, this confirms the latter part of the year. Roughly 40% of our sales occur in the last quarter of the yearElizondo added.

Also read: Traditional and burgundy clothing gaining strength, sale of handmade items grows 278%: Amazon

In 2021 alone, the company continued its expansion in the country by opening four shipping centers that created 2,500 job opportunities.

Amazon
Photo: © Fernando Luna Arce.
amazon shipping center
Amazon Shipping Center. Photo: © Fernando Luna Arce.

“We are a technology company and we put the resources, both people and technology, to know and predict the products our customers are looking to buy in the later part of the year and we achieved Sources To make these products available to customers in the various channels we have available.”

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Small and Medium Enterprises (SMEs) It accounts for 60% of all Amazon salesTherefore, the manager emphasized that in recent months they have focused on increasing container unloading products by 50%, in order to simplify the speed of this process and to save on products to be shipped.

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Among the favorite products of Mexican consumers during the Good End are electronics, clothing, accessories and home products, which will record discounts of 25-30%.

amazon shipping center
Amazon Shipping Center. Photo: © Fernando Luna Arce.
amazon shipping center
Amazon Shipping Center. Photo: © Fernando Luna Arce.

“If we want to be that company that is more focused and customer centric It is our responsibility to continue investing in our infrastructure so that we can make deliveries faster In addition to having a better range of products for them,” Elizondo added.

To date, Amazon has invested $100 million globally and in Mexico 19,000 million pesos in infrastructure, affecting 3,000 million pesos in GDP, with 10 shipping centers, which stand out in Yucatán, Sonora, Edomex, Nuevo León and Jalisco.

“Amazon is for everyone because we have different payment methods, credit cards, debit cards, we have Amazon cash, and in November we started payments with coupons, which puts us in a very good position to make sure that Amazon is for everyone,” the manager concluded.

amazon shipping center
Amazon Shipping Center. Photo: © Fernando Luna Arce.
amazon shipping center
Photo: © Fernando Luna Arce.

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