SEATTLE/MEXICO CITY: Amazon began operations in Mexico two years ago, but now online consumers in parts of the country can access free shipping as well as streamed video after the e-commerce giant announced the launch of Amazon Prime.
It is the first time that Amazon has launched both Prime shipping and Prime Video from day one and the Prime launch in Mexico is also Amazon’s first debut in Latin America, TechCrunch reported.
The service, which comes with unlimited free shipping covering 20m items, will cost 449 pesos ($23) for the first year, rising to 899 pesos ($46) after that.
It means that, for the first time, shoppers in Mexico City, Guadalajara, Puebla and Querétaro can expect one-day delivery on a select range of products.
In addition, same-day delivery covering thousands of items will be available to consumers in the Mexico City metro area.
And with the launch of Prime Video, Amazon is also ramping up its challenge to Netflix, its video streaming rival, which has an estimated 1.2m subscribers in Mexico.
According to Amazon, its video service will offer hundreds of popular movies and TV shows, including its original series "Mozart in the Jungle", the comedy drama that features Mexican actor Gael Garcia Bernal.
Other shows will follow later in the year, including "Goliath", "The Man in the High Castle" and "The Grand Tour", among others.
Mexican consumer confidence has taken bit of a hit in recent months, as has the peso, amid uncertainty following the election of Donald Trump as US President.
Yet, despite this, the country’s e-commerce potential continues to attract some major players. For example, besides Amazon, Walmart announced at the end of last year that it would invest $1.3bn to improve its logistics and distribution centres.
Furthermore, Mexico is the second largest economy in Latin America and, according to Forrester Research cited by TechCrunch, is expected to see its e-commerce sector grow to $6bn by 2018, up from $2.9bn in 2015.
Data sourced from TechCrunch; additional content by Warc staff