Amazon (NASDAQ:AMZN) has dedicated websites all around the world, but the Seattle-based company did not have an operation in Mexico until now.
What: The online retailer has launched Amazon.com.mx, a Spanish-language website with millions of items available for customers in Mexico. The site has launched with with more categories than any other international Amazon website has featured at launch, according to a press release today, and more are being added each day.
"Our mission at Amazon is to be Earth's most customer centric company, and we strive to be the destination where people can find anything they want to buy online," said Alexandre Gagnon, director of international expansion for Amazon. "With Amazon.com.mx, customers in Mexico will find more of what they want -- the largest selection in the country, low prices, fast and reliable delivery, all with a trusted and convenient experience."
So what: Amazon has avoided the country in the past because online shopping faced an uphill battle there thanks to unreliable postal service and a lack of credit, GeekWire reported. But the base of digital shoppers there has steadily grown, rising from 12.6 million in 2013 to a projected 23.2 million in 2018, according to Statista.
That's still a drop in the bucket compared to some of the company's more-established territories, but it's a huge opportunity in a country which is not yet congested with competition.
Now what: Amazon has its work cut out for it. The company not only has to launch a website in a country which has not fully embraced online shopping, it also needs to build out a local group of third-party marketplace sellers and work around some of the problems unique to the country.
One issue, the lack of mail delivery at some addresses, is being addressed by Amazon's offering the ability to pick up packages at partner locations. The company will also offer what it calls "monthly payment options" and it promised other payment choices, but offered no details in the launch release.
The online retailer also has to build up a customer base, but it has a bit of a head start on that because it has been operating a Kindle bookstore in the country since 2013.
Daniel Kline has no position in any stocks mentioned. Hablo un poco de Espanol. The Motley Fool recommends Amazon.com. The Motley Fool owns shares of Amazon.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.