Supply chain solutions vendor Ingram Micro has expanded its operations in Mexico City and Guadalajara in an apparent bid to capitalize on the growing demand for e-commerce services.
With the COVID-19 pandemic restricting movement in the name of social distancing, more and more Latin Americans have turned to online shopping. As many as 13 million people in the region made their first eCommerce purchase in the first quarter of 2020, according to a study by Visa, an American payment services giant.
A similar survey from Statista indicated that 26% of online shoppers required a return within a year of purchase. It is this ‘reverse logistics’ service that Ingram is trying to capitalize on in the region.
“In addition to providing fast e-commerce order fulfillment and forward logistics services, we are proud to offer comprehensive reverse logistics and returns solutions to meet the growing needs of online brands and retailers….,” says Martin Garcia-Brosa, Ingram’s executive managing director in Latin America.
The Irvine, Calif-based firm has 17 facilities in Latin America, from Peru to Costa Rica, and Argentina to Colombia. It has recently unveiled a foreign trade zone (FTZ) in Miami, saying the facility will serve as a gateway to Latin America enabling cross-border shipping.
The IT distributor has been present in Latin America for more than a decade. Its operation grew significantly in 2015 when it purchased Tech Data’s operations in Chile and Peru.
A few months later, it purchased Sao Paulo, Brazil-based IT solution vendor Grupo ACAO, with operations in more than six Latin American countries, including Uruguay, Ecuador, and Argentina.
Ingram’s expansion in Latin America accelerated soon after 2017 when it was acquired by Chinese investment firm Tianjin Tianhai.