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Why is Mexico a Top Destination for E-commerce Expansion?

por | Sep 8, 2024 | Artículo

With a population exceeding 132 million and an e-commerce market expected to reach $59 billion by 2028, Mexico is a prime destination for e-commerce businesses aiming for international growth. Driven by a large and tech-savvy population, favorable operational conditions, and strategic geographic positioning, Mexico has become an e-commerce hub in Latin America. Here’s why Mexico should be on your radar.

Here’s why Mexico should be on your radar.Key Drivers of E-commerce Growth in Mexico

  1. High Internet Penetration and Rapid Market Expansion
    Nearly 80% of Mexicans use the internet, fueling a booming e-commerce market. In 2023, the market size reached an impressive $74 billion, making Mexico the second-largest e-commerce market in Latin America after Brazil. Projections indicate this figure will grow to $176.8 billion by 2026, representing a compound annual growth rate (CAGR) of 33%.
  2. Low VAT and Favorable Government Initiatives
    Mexico’s VAT stands at just 16%, one of the lowest in Latin America, making it more attractive for both domestic and international sellers. Government initiatives aimed at bolstering economic growth further enhance the business landscape, creating opportunities for companies to enter the market seamlessly.
  3. Strategic Location and Logistics Advantages
    Mexico’s proximity to both North and South America provides easy access to key markets, while its 32 ports facilitate international shipping. This geographical advantage makes Mexico a gateway for e-commerce expansion across two continents.

E-commerce Spending and Consumer Behavior

The Mexican e-commerce consumer is active and ready to spend. On average, a Mexican e-commerce buyer spends around $580 per year, with the average ticket size for online purchases being approximately $89. The typical online buyer in Mexico falls within the 25 to 44 age range, representing 57% of the country’s e-shoppers.

In terms of purchasing habits, 25% of Mexican consumers shop online at least once per month. This reflects the growing trust and reliance on e-commerce platforms in the country.

Payment Methods and Devices

E-commerce in Mexico is predominantly mobile-driven, with 79% of transactions occurring through mobile devices. The leading payment methods include internationally-enabled credit cards (38%), debit cards (25%), and cash vouchers (10%). Digital wallets account for 8% of transactions, highlighting the growing preference for modern payment solutions.

Beauty and healthTop-Selling Categories and Marketplaces

Mexican consumers tend to favor the following product categories:

  • Clothing and footwear
  • Electronics
  • Computers and technology
  • Beauty and health
  • Home and furniture

Leading marketplaces such as Mercado Libre and Amazon Mexico dominate the landscape. Mercado Libre attracted 111.3 million visitors in January 2024 alone, while Amazon Mexico, with an investment of USD $100 million in logistics, continues to expand its operations across key cities in the country.

The Role of Small and Medium-Sized Businesses (SMBs)

If you’re not convinced yet, here’s why Mexico should be on your radar: SMBs are a driving force behind Mexico’s e-commerce boom, with 52% of micro, small, and medium-sized businesses (MSMBs) using e-commerce channels to grow. Many MSMBs rely on social networks (78%) and marketplaces (76%) to expand nationally and explore international markets. Interestingly, 33% of SMBs reported that over 25% of their export revenue comes from sales to North America, showcasing Mexico’s strong trade ties to the region.

Future Opportunities and Challenges

As Mexico’s e-commerce market continues to grow, businesses must be prepared to address logistical challenges, including evolving packaging regulations and long wait times at customs. Despite these obstacles, 21% of SMBs plan to begin exporting within the next 12 months, further strengthening Mexico’s e-commerce ecosystem.

Additionally, cross-border e-commerce presents a massive opportunity, with experts projecting a 45% growth in cross-border sales by 2024. Companies entering this space must focus on building efficient supply chains to maintain competitiveness and deliver the fast, reliable service that consumers increasingly demand.

With its rapidly expanding market, favorable VAT rates, and strategic location, Mexico is a powerhouse for e-commerce growth. Whether through established marketplaces like Mercado Libre and Amazon or via SMB-driven cross-border trade, businesses have vast opportunities to thrive in this dynamic environment. By addressing logistical challenges and tapping into evolving consumer behaviors, companies can establish a strong foothold in one of Latin America’s most promising markets. 

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