Amazon plans mega-warehouse for Mexico

Amazon is preparing to open a 1 million square-foot warehouse near Mexico City to boost its presence in the Mexico's e-commerce industry.VIDEO: REUTERS

MEXICO (REUTERS) - Amazon is preparing for a much deeper push into Mexico.

Reuters learn exclusively of Amazon's plans to build a 92,903 sqm (one million square foot) warehouse near Mexico City, which would triple its distribution space south of the border.

With that amount of square footage - Amazon could add larger, more expensive items to the products available to Mexican shoppers.

And that could help win over more of the 120 million available customers there.

So far, Amazon has seen some success, but Mexico is still a cash-and-carry economy, says Reuters Mexico Correspondent Daina Beth Solomon: "Amazon has now risen to third place for e-commerce in Mexico, and it seems to be winning over millennials in Mexico City, who say that they can find items like books, electronics, and clothing more easily on Amazon than in stores. However, other Mexican shoppers say they don't always trust websites with their bank information and they are worried about credit card fraud."

Experts say if Amazon follows its typical set-up, the new facility could house 15 million products, make up to a million deliveries a day, and put up to 3,000 people to work.

Those jobs, however, would be Mexican jobs - a point likely to further strain relations between Amazon chief executive officer Jeff Bezos, who also owns The Washington Post, and the White House. The Washington Post is often a target of the president's criticism.