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Some Amazon deliveries can be picked up at Oxxo

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Some Oxxo branches are doubling as dropoff points for smaller Amazon packages. Photo: Courtesy

A new alliance between Amazon and the ubiquitous Oxxo is meant to help customers overcome any reluctance to shop online.

The option started Friday, but is limited to smaller packages and a relatively small selection of locations.

“Starting May 18, customers will be able to make use of this service on amazon.com.mx, Amazon’s branch in Mexico and Oxxo will continue to increase the number of branches authorized to provide this service during the next few months,” said a spokesman for the convenience store chain, which is owned by the FEMSA Coco-Cola distributor. Customers incur no extra charge to have their goods waiting for them at Oxxo.

So far, only selected Oxxos in Mérida, Progreso and Umán are accepting Amazon deliveries in Yucatán.

Several analysts have commented that this is a key partnership for both parties, since Amazon could break the slow growth of e-commerce in Mexico by providing security and confidence for those who are still hesitant to click and buy.

Packages eligible for delivery by “Puntos de entrega Amazon en Oxxo” (“Amazon at Oxxo delivery points”) may have a circumference of up to 1.54 meters (60.62 inches) and weigh no more than 10 kilograms (22 pounds). The product’s cost must be no more than 1,500 pesos.

“With this delivery alternative, we show that our investment in infrastructure and alliances allows us to continue offering diverse options to our clients,” said Fernando Ramírez, leader of Amazon’s branch in Mexico.

Internet sales still represent just over 3 percent of total retail sales in Mexico, where shoppers fear fraud and package theft.

When selecting the delivery address, the customer must click the option: “Look for a delivery point near you,” enter a ZIP code, address, or reference point and, with that information, nearby Oxxo stores should be displayed.

When the package arrives at the selected Oxxo delivery point, the customer will receive an e-mail with instructions for pickup. Upon arrival at the store, the customer must show an ID and provide the package’s tracking number.

Oxxo maintains 16,700 stores across the country.

Market research firm Euromonitor anticipated at the end of 2017 that Amazon would generate sales of US$505.2 million in Mexico, more than double than in 2016, to place it as the country’s leading online retailer. In second and third place was Argentina’s Mercado Libre and Walmart de México.

Source: Punto Medio, Bloomberg

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