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E-commerce: The Impact of Deliveries in Less than 24 Hours on Logistics Chains and the Real Estate Market

  • Same-day delivery, a burgeoning e-commerce service, has sparked an unprecedented surge in Brazilian real estate and logistics sectors. Yet, this business strategy grapples with significant challenges in operational efficiency, environmental sustainability, proper infrastructure, and strategic property location
Amazon has a fast-shipping service called “Prime”
Amazon has a fast-shipping service called “Prime”
By: SiiLA News
11/09/2023

In the digital age, where immediacy has emerged as an aggregate value to entice consumers, e-commerce businesses in Brazil have embraced a strategy that, albeit ambitious, is reshaping our shopping habits: same-day delivery. But what does this strategy mean for supply chains, the commercial real estate market, and logistics in the country?

The principle of same-day delivery pertains to an e-commerce company's ability to process, prepare, and deliver an order to the customer within a 24-hour window from the time of purchase. This efficiency caters to the customer's immediate demands and stands as a differentiator in a fiercely competitive sector. Its ramifications for logistics and supply chains are significant.

To ensure swift or ultra-fast deliveries, these companies lean on strategically located distribution centers, efficient transportation fleets, and advanced management systems. This has spurred industrial spaces and warehouse demand in key locations, particularly near densely populated urban areas, aiming to minimize transit times.

Since 2020, the e-commerce surge has been accentuated due to mobility restrictions from the COVID-19 pandemic. Data from SiiLA reveals that, between Q3 2020 and Q3 2023, the Gross Leasable Area (GLA) occupied by e-commerce companies, including giants like Amazon, and Mercado Livre, rose by 84%. Additionally, the industrial space in the transport & logistics sector grew by 46%.

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Brazil
National
Industrial
Market Analytics
Retail And E-Commerce

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