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Only applies to Mexico.

Challenges and opportunities of E-commerce in Mexico

Administrator - MSP abril 21, 2022 DAT# 2.456

Electronic commerce in Mexico has grown by more than 81%. This represents 9% of the nation’s total retail sales.

Changes in electronic commerce

One of the important changes for Mexican ecommerce is the radical reduction of multi-channel sales. This as a consequence of the pandemic, with physical stores closed, most sales were made online.

This change at a temporary level, 2020 and so far in 2021, years where it is advisable to invest your marketing budget in making ecommerce your main business. Do not waste time in the physical store, until the pandemic is completely resolved. At this time, ecommerce is the only safe way for your business.

Shipping logistic network

Structural change occurs based on orders, parcel logistics networks and last-mile services.

Before 2019, Mexico did not have parcel networks and functional last-mile services in most of its territory. Shipping logistics were limited to the main cities: Mexico City, Monterrey, Guadalajara, Tijuana, etc. It currently has logistics companies that cover the entire

national territory and this continues to increase. Mexico City continues to accumulate more than 30% of total sales.

Legal aspects of electronic commerce

The introduction of the Mexican Electronic Commerce Standard and the Digital Tax. The two legislations arose as a result of the rise of ecommerce to formalize and give a necessary legal framework to an increasingly important sector.

First time shopping online

An important aspect of 2020 was the high number of Mexicans who made online purchases for the first time, approximately 20% of total purchases were first purchases.

Such a high rate of first purchases causes the online market to take care of the buyer’s experience, since the first impression makes the difference between a recurring buyer or one who will no longer trust the brand.

This paradigm shift predicts an excellent future for ecommerce in Mexico. Mexicans were not used to buying online, but the Covid-19 pandemic caused the incursion of ecommerce, mainly in the food, technology and food delivery sectors.

First time shopping online

An important aspect of 2020 was the high number of Mexicans who made online purchases for the first time, approximately 20% of total purchases were first purchases.

Another challenge is the issue of online offers and promotions. The Hot Sale and El Buen Fin have increased the number of days they have promotions. This is the result of the growth that Mexican ecommerce has had.

An ecommerce cannot constantly offer discounts on its products, and it is not beneficial for the buyer to see a long time of discount bombardment, flash promotions and product bundles. Discounts must have proportion and measure.

What really increases the sales of an ecommerce in a sustainable way is offering added value to the product or service.

Opportunities for ecommerce

Most buyers are encouraged to buy online if the ecommerce offers them anti-fraud protection or guarantees. Some consider it decisive to buy or not to buy, that the ecommerce ensures the return of the product or service if it does not meet the conditions expected.

The return policy for dissatisfaction is a global ecommerce standard, in Mexico it is not very clear, in the United States and Europe they have been applying it for years and it is one of the reasons why people buy online.

Fraud

80% indicate that they withdraw from a purchase if the request form for their bank details seems suspicious to them.

Who buys online?

The Mexican online buyer: 53% are women, 21% are young people between 18 and 24 years of age, 18% of buyers are between 45 and 65 years of age.

These figures show us that Mexico is a growing market for electronic commerce.

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