It is no secret to anyone that one of the battles that must be fought in the world of e-commerce is to streamline processes in everything that involves delivery. Amazon has shown how consumers can be loyal through a service without obstacles in this regard, and now Mercado Libre puts on the table an issue that could give a unique boost to its service in the country.
And with the intention of facilitating and speeding up the delivery of its products to customers, the Latin American e-commerce platform has just announced that it seeks to create what it calls “package agencies”, a scheme in which “small stores of the corner ”and small shops they could become product delivery points.
In addition to this intention of capitalizing on the location of local businesses, Mercado Libre will seek to incorporate self-employed distributors, who will be able to make deliveries independently.
In principle, the now called Free Market Package Agencies network now integrates more than a thousand small businesses nationwide (such as corner stores, stationery stores, dry cleaners, among others), where buyers and sellers of the platform they will be able to send, receive or return their packages.
As indicated by the platform “if the buyer user is not at home, just ask to send the package to the trusted store, which is Mercado Libre Package Agency, to pick it up when possible, and if it is a seller user, it will be able to deliver its orders in more points located in its periphery, without any additional cost ”.
For now, this program of “package agencies” operates in 13 states of the country (Mexico City, State of Mexico, Puebla, Querétaro, Jalisco, Nuevo León, Yucatán, Quintana Roo, Chihuahua, Sonora, Sinaloa, Baja California and Baja California Sur), although the goal is for the service to reach the entire country by the end of the year.
With regard to Mercado Envíos Extra, it is “a technological solution that integrates independent distributors to Mercado Libre’s logistics, so that they can generate additional income for delivering packages with their own vehicle and with the flexibility to do so on a daily basis. that they prefer, taking into account the delivery area and preferred routes ”, they indicate from the company.
So far, this service is available in six entities of the country with more than 1,200 distributors in office under this scheme. By the end of 2020, the network is expected to reach 30 cities in Mexico.
This move could give Mercado Libre an especially important advantage over Amazon, at a time when e-commerce is growing exponentially in Mexico.
Just remember the data from a recent survey by the consultancy FRAME, which points out that a 60 percent of people buy more online.
Specifically, in the case of the mediated market, and to say of the Mexican Association of Online Sales (AMVO) 55 percent of people buy products and services online to avoid leaving home. The main reason with 48 percent of mentions is to avoid crowds in physical stores.
This has led to an exponentially higher demand for courier services firms such as Fedex and DHL, which does not promise to decrease, at least, in the medium term if we consider that only the 36 percent are willing to return to their normal activities, according to Kantar’s COVID-19 Barometer.
The truth is that this market, although not limited to these two brands, is a business with few players who need to be seen.
According to data provided by Mail Boxes Etc, until last year, it was barely counted 377 companies offering services of courier and parcel delivery in the country, which right now is insufficient.
In this game, the own network created by Amazon has given a break to this maca, which has allowed it to maintain rising figures due to the perception of fast, efficient and safe service that from its delivery process delivers.
The truth is that Mercado Libre is now betting on winning all these qualifiers with an additional bonus. Closeness, and support to the localities, which could give a plus in the eyes of the consumer.