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Report: Amazon To Triple Its Warehouse Space In Mexico

Amazon reportedly plans to bolster its growing e-commerce operations in Mexico with a massive new warehouse near the nation's capital.

Amazon reportedly plans to bolster its growing e-commerce operations in Mexico with a massive new warehouse near the nation's capital.

Reuters, citing unnamed real estate professionals familiar with the effort, reported that the facility in Tepotzotlan — about 25 miles outside Mexico City — would, at about 1 million square feet, nearly triple the company's warehouse space in the country when it opens next year.

Amazon is a relative newcomer to the Mexican market, where consumer habits are less conducive to online shopping than other international markets. But the country's proximity to Amazon's U.S. base — and Mexico's population of more than 120 million — could offer a massive new market to the company.

Amazon began selling books on its Mexican website in 2013 and added more products in 2015. Earlier this year, the company added Mexico to the list of countries with its rapid-delivery Prime service.

Reuters noted that Amazon is already the nation's third-largest online retailer and that its sales in the country doubled between 2015 and 2016.

In addition, the report suggested that talks to revamp the North American Free Trade Agreement could prompt Mexico to raise the current $50 cap on online purchases that can be imported duty-free.

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