Ecommerce in Mexico represents both a key challenge and a great opportunity to quickly expand cross-border into Latin America (LATAM). During Q2-2018, 73% of the country´s population used ecommerce platforms at least once. This means that 57.7 million Mexicans have used internet to acquire goods and services online.
As shown in the graphs below, between 2016 and 2017, ecommerce revenue expanded by 19.2%, which resulted in total revenues of almost 12 billion USD. A growth rate that continues during 2018. In fact, Eshopword predicts a 2018 revenues of around 14 billion USD.
According to the last trade study in 2018 by Paypal and Ipsos, the ecommerce sector follows a clear upward trend line. As a result, México is the LATAM country with the highest online purchase percentage with 56% of the populace, followed by Brazil with 40% and Argentina with 35%. Additionally, ecommerce grew by around 48% between 2009 and 2017 in the region.
Source: The Competitive Intelligence Unit
Regarding categories, the electronics vertical is still the main generator of ecommerce income (17.1%), followed closely by fashion (11.4%) and travel (9.2%). Regarding payment methods: 55% of purchases were done by debit card and 45% by credit card. Further, like in the US, Mexican purchases peak on special days: Christmas, Hot Sale and El Buen Fin. For instance, in 2017 purchases during Hot Sale increased by 18% compared to the previous year. It has been observed that Mexico’s online consumers are becoming more demanding and that those sales campaigns are a great way to develop ecommerce awareness, as benefits are widely advertised.
Nowadays, competitive delivery options are available in Mexico, and the last mile delivery benefits largely for improved infrastructures. Apart from last mile logistics, four other aspects are seen as critical for ecommerce success: width and depth of catalogues, efficient payment methods, short delivery times, and customer care.
However, Mexican ecommerce still remains relatively immature due to financial exclusion and consumer distrust. Concretely, the government should develop a clear legal framework to prevent fraud, increase transport security and improve the availability of delivery options at competitive rates.
To conclude, without a doubt, further progress will be made regarding improving ecommerce infrastructures. Eshopword’s predictions is that by 2020 online revenue will reach almost 18 billion USD, positioning Mexico as one of the most entrenched ecommerce markets of Latin America.
“Los retos del comercio electrónico en México”, El Economista, July 5, 2018
“El e-commerce en México, una gran oportunidad” Forbes, February 12, 2018
“Fashion, Facebook & Mobile are the Future of the Mexican eCommerce Market”, Eshopword
“Aumentan el acceso a internet y el comercio electrónico en México”, Vanguardia, August 9, 2018
“Comercio Electrónico en México, 2018”, Addictware, October 8, 2018
Read further: In-depth, News, ecommerce, infrastructure, logistics, mexico, revenues, transport
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