Mercado Libre, Latin America’s home-grown e-commerce firm, said on Thursday that it would open two large distribution centers in Mexico as part of an effort to improve its logistics in the country.
Buenos Aires-based Mercado Libre said it would invest $100 million to open the distribution centers, the company’s first, which would yield 3,000 jobs in Mexico.
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The facilities will help the company speed up deliveries, which is essential to the appeal of e-commerce, Chief Executive Ignacio Caride said in an interview earlier this month with Reuters.
“As fast as possible - that is going to be the experience of e-commerce,” he said. “That is the big difference between people who go to retail stores with packages in their arms, and people who shop online - how long it takes.”
The distribution centers, which total 1.4 million square feet (130,000 square meters), are located in the state of Mexico, which surrounds Mexico City.
Mexico’s nascent e-commerce market is heating up, with Amazon also investing heavily.
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Logistics is the most vexing challenge facing e-commerce companies, Caride said.
“That is the most difficult part to solve, because it’s very expensive, and it requires lots of people, and it requires a very big investment,” he said.