Mexico, The Fastest Growing Ecommerce Market in Latin America
Mexico is the second largest e-commerce market in Latin America, following Brazil.
In fact, Research study shows that the Mexican e-commerce market is expected to grow at a compound annual rate of 6.5 percent over the next four years, resulting in a market volume of US$21.8 billion by 2024. The average annual revenue per user currently amounts to US$334.
This immense growth is largely a result of the increased rate of internet use and penetration in Mexico.
According to AMIPCI e IAB Mexico, on average, Mexicans spend 7 hours and 14 minutes a day using the internet–that’s 1 hour and 3 minutes longer than last year. Not only are Mexican internet users increasingly exposed to international goods but ownership of multiple internet accessible devices such as laptops, tablets and smartphones is becoming the norm. This rate of exposure and usage will continue to support the growth of e-commerce throughout Mexico.
In other words, the near future of the Mexican e-market is prosperous. But undoubtedly the current Mexican e-commerce market is thriving and worth expanding toward. Early investment will assure a more dominant place in the market and create a seasoned experience in dealing with the payment systems existing in the country. In 2020, just over two-thirds of Mexico’s online consumers have shopped at an international site, according to Statista. Also, accepting cash (like OXXO payment method) is necessary to achieve e-commerce success in the region.
Walmart and Amazon arrive in Mexico
International forerunners, like Walmart and Amazon, have already targeted the market south of the border and successfully opened their doors online. Amazon now offers Kindle devices, ebooks, and a variety of other physical goods to Mexican buyers. Walmart is a dominant player in international online sales in Mexico. Unlike in the US,
Walmart appeals to a wealthier clientele in Mexico than the working class due to services like same day delivery. However, if online shoppers in Mexico follow the shopping trends of the millions of online buyers in Brazil, Mexicans of varying socioeconomic status will grow eager to find the best online deals for the products that fit their needs–from anywhere in the world.
To learn about how to successfully sell online to the Mexican e-market, please download our white paper: Doing Business in Mexico.