Selling Cross-Border To Mexico: The Complete Guide

Mexico accounts for nearly 20% of the USA’s exports, meaning that there are plenty of opportunities for people who are interested in tapping into Mexico’s online market. With that being said, there are plenty of factors to consider before you can extend your e-commerce business to this country. 

For example, you need to consider the various demographics, the opportunities that are available to you, how you will go about shipping your products, how you will market your business, and the various carrier options. 

In this article, we will be discussing everything that you need to know about how you can extend your e-commerce business and sell to Mexico.

Demographics Of Mexico

 

Population

As of 2020, Mexico has a population of nearly 129 000 000 million people. This makes it the tenth most populated country in the world.

 

Yearly Population Change

The population of Mexico is increasing by just over 1% every year. This means that it also lies tenth on the list of countries with the highest yearly population change.

 

Median Age

The medium age of Mexican citizens is just under 28 years old, making it one of the youngest countries in the world.

 

Dependency Ratio

At the end of 2019, the age dependency ratio of Mexico was reported to be just over 50 percent - this is slightly less than the world’s average.

 

Life Expectancy

The life expectancy of Mexico lies at just under 75 years. To put this in perspective, the world’s average life expectancy at the start of 2020 was recorded to be 72 years.

 

What Are The Opportunities For Online Sellers Who Are Interested In Tapping Into The Mexican E-commerce Market?

As we have already mentioned, Mexico has a very promising e-commerce market that many Americans are taking advantage of. However, even though the country has one of the largest e-commerce markets in Latin America, it still has a long way to go until it reaches its full potential.

If you are an entrepreneur who is looking for good opportunities in the Mexican e-commerce market, you have come to the right place. Below, we have listed a few of the most popular products sold in Mexico. These products create the biggest opportunities in the e-commerce market.

 

Apparel And Accessories

Clothing and accessories are by far the most purchased goods on the Mexican e-commerce market. In fact, an overwhelming 53% of online shoppers purchase these products. If you want to tap into the Mexican e-commerce market, apparel and accessories just might be the way to go.

 

Video Games And Consoles

The second largest e-commerce market in Mexico is that of video games and consoles. Just over 23% of Mexicans use their online account to purchase these items.

 

Toys And Hobbies

Toys and hobbies make up the third-largest e-commerce market in Mexico. Over 20% of online sales in 2019 were made to purchase these goods.

 

Jewelry

The fourth-largest e-commerce market in Mexico is based on jewelry. This sector made up just over 18% of online sales in 2019.

 

Sport And Fitness Equipment

Lastly, the fifth largest e-commerce market in Mexico is made up of sport and fitness equipment. In 2019, roughly 18% of online sales were made to purchase these goods.

There are plenty of opportunities for entrepreneurs who are wanting to tap into the Mexican e-commerce business. If you want to achieve as much success as possible (and who wouldn’t), the best move would be to give the people what they want. In this case, as we have shown above, the people want apparel and accessories, video games and consoles, toys, jewelry and sports equipment.

 

The Mexican Culture

The culture in Mexico forms a huge part of the citizen’s lives. Mexico is known for its rich, vibrant and colorful clothing, influenced by ancient civilizations, such as the Aztec and Maya. The people of this Latin American country have various traditions and customs, such as siestas and bullfighting.

If you are going to be investing in the Mexican e-commerce market, it is important that you understand and adapt to their culture.

 

Mexican Payment Methods

The most preferred payment methods used in Mexico are with MasterCard, Visa credit, or debit card. However, there are also various online payment options, such as OXXO and Spei.

 

Read also: The benefits of providing OXXO when dropshipping

The Importance Of Having A Mobile Responsive Website

A mobile responsive website means that the layout of the website changes to suit the format of a mobile device. In other words, people will be able to read all the text on the page without having to zoom in or out. More so, there will be adequate space for tap targets.

If your e-commerce website is difficult to use and navigate, it is likely that a good portion of your customers will not come back or buy from you. For this reason, it is vital that your e-commerce website is mobile responsive. Many people use their cellphones to do their online shopping, meaning that a user-friendly website is of utmost importance.

 

How Can I Ship To Mexico?

You need to think about how you will go about shipping to Mexico once you set up your e-commerce business. There are many ways in which you can export your goods, such as via air, water or road. There are also many companies that you can turn to in order to get this job done.

 

United States Postal Service

As we have already mentioned, there are various companies that you could use to ship your goods and products to Mexico. With that being said, the cheapest method would be through the United States Postal Service.

USPS will charge customers a very reasonable fee for shipping. More so, their delivery times are often better than UPS or FedEx. If you want to save even more money, try buying your postage online with shipping software - this will allow you to gain access to USPS discounts, such as Commercial Pricing.

It is important to note that you will have to sign a customs form when shipping to Mexico from the United States. With that being said, online shipping software will generate these forms for you, meaning that you will not have to worry about the paperwork.

 

UPS, DHL, FedEx, And NEX

If you would prefer not to use USPS for whatever reason, there are plenty of other shipping companies that you could turn to, including UPS, DHL, FedEx, and NEX. These are some of the most popular and widely-used postal services in the United States - however, they are also more expensive than USPS.

Extra Content: How does Shipping work to Latin America?

 

Shipping Time

The amount of time that it will take for your package to reach Mexico depends on a number of factors, including which shipping company you use and how far the package is being shipped.

There are also various shipping options that you can select when sending a package. For example, priority mail will take 1-3 days to reach its destination, while media mail can take up to 8 days to arrive.

 

How To Market To Mexican Consumers

It is very important that you correctly market your e-commerce company to Mexican consumers. In fact, how you market your business can determine the level of success that reaches. Below, we will be discussing a few factors, such as regional differences, Mexican holidays, and local payment methods, that can affect the marketing process.

 

Regional Differences

If you are to run a successful e-commerce business that sells to Mexico, it is very important that you know about the regional differences of the country, as they can affect deliveries and marketing. As we will discuss below, the different regions of Mexico each have their preferred local payment methods. This means that the regional differences will also affect the payments to your e-commerce business.

Mexico can be divided up into 9 different geographical regions: Baja California, the Sierra Madre Occidental, the Mexican Plateau, the Pacific Coastal Lowlands, the Sierra Madre Oriental, the Cordillera Neo-Volcánica, the Southern Highlands, the Gulf Coastal Plain, and the Yucatán Peninsula.

More so, the country can be divided into 4 different cultural regions. As we have already discussed, Mexico's culture forms a considerable part of the citizen’s lives, and you should consider it when spreading your e-commerce business to the area.

The 4 cultural regions include Greater Mexico City, Central Mexico, Northern Mexico, and Southern Mexico.

 

Mexican Holidays

Mexico is known for its many festivals and cultural events. As an e-commerce business owner, you need to take these various holidays into account.

 

Dia De Reyes

Dia De Reyes is a Mexican holiday that takes place on the 5th of January. On this Catholic holiday, families celebrate the three kings who brought Jesus gifts on his birthday.

Candelaria

Candelaria is another Mexican holiday that takes place on the 2nd of February. This day celebrates the presentation of Jesus to the temple in Jerusalem.

Dia De La Constitución

Dia De La Constitución is a holiday to celebrate the signing of the constitution. This event takes place on the 5th of February.

Dia De Muertos

Dia De Muertos, or the Day of the Dead, is arguably the biggest holiday in Mexico. This event takes place on the 1st and 2nd of November and honors any relatives or ancestors that have passed away.

Dia De La Bandera

Dia De La Bandera is a very old Mexican holiday that takes place on the 24th of February. This celebration was created to honor the flag of the country. However, it is not seen as a statutory holiday, meaning that work continues as normal.

Natalicio De Benito Juarez

Natalicio De Benito Juarez is a day dedicated to one of Mexico's most beloved presidents. This celebration takes place on the 21st of March.

Semana Santa

Semana Santa is a holy week that takes place during a different time every year. This celebration commemorates the days leading up to Easter.

Dia Del Trabajo

Dia Del Trabajo is a Mexican holiday that takes place on the 1st of May. All Mexican citizens are given this day off work, as it stands to celebrate the labor movement's historical struggles.

Cinco De Mayo

As the name suggests, Cinco De Mayo is a Mexican holiday that takes place on the 5th of May. This event stands to commemorate a military victory that occurred in the mid-1800s.

Dia De La Independencia

Dia De La Independencia, or Independence Day, takes place from the 15th to the 16th of September. This celebration stands to commemorate the Shout of Dolores, which initiated the War of Independence.

 

Offering Local Payment Methods

It is very important that you offer Mexican consumers various local payment methods. If they visit your e-commerce website and select a product to purchase, only to find that you do not offer them any convenient payment methods, they are less likely to buy your goods.

As we have already mentioned, there are multiple payment methods that the Mexican citizens prefer using. These include MasterCard, Visa Credit, and debit cards. There are also a few online payment methods, such as Spei and OXXO.

The different regions of Mexico (which we have already discussed) each have their own preferred local payment methods. There is a noticeable trend in the use of e-wallets - this is a type of card that can be used to make transactions online through a mobile device or computer.

E-wallets are linked to the owner's bank account, making payment quick, easy, and simple. This system is becoming increasingly popular in Mexico, making it a good idea for e-commerce business owners to incorporate it into their payment options.

 

Carrier Options To Ship From The US To Mexico

There are various carrier options that you can choose from when shipping to Mexico from the United States. These companies will ensure that your goods reach their destination via air, water, or road.

We have already discussed how the United States Postal Service offers customers very reasonable prices and fast shipping. More so, you can choose from a variety of shipping companies, such as FedEx, UPS, DHL, and NEX.

 

Conclusion

Mexico accounts for nearly 20% of the USA’s e-commerce exports. With that being said, the Latin American country offers e-commerce business owners plenty of opportunities when it comes to extending and improving their sales. However, there are many factors to consider before you can do this, such as the various demographics of the country, the opportunities that are available to you, how you will go about shipping to Mexico, how you will market your business and the various carrier options.

The population of Mexico lies at 129 000 000 million people, and this value changes by just over 1% every year. The average person in the country lives to be about 75 years old, and the median age is roughly 28 years old.

There are plenty of opportunities for American citizens when it comes to extending their e-commerce business to Mexico. The most popular products bought online by Mexican consumers are apparel and accessories, video games and consoles, toys, jewelry, and sport and fitness equipment. It would be best if you also considered the culture as it is a significant part of the Mexican people's lives.

The most preferred payment methods include MasterCard, Visa credit, or debit card. However, there are also various online payment options, such as OXXO. It is vital that you make your e-commerce website mobile responsive - this will ensure that customers find it easy and simple to navigate through your site.

There are various ways in which you can ship your e-commerce products from the United States to Mexico. Your cheapest option would be to use the United States Postal Service - they are also likely to deliver your goods in very little time. You could also use various shipping companies, such as UPS, DHL, FedEx, and NEX. The amount of time that it will take to ship your products depends on the company that you use and its destination, but, on average, it will take between 2 and 8 days.

Once your e-commerce business is up and running, it is imperative that you focus on marketing your company. However, there are plenty of things to consider when doing this, such as regional differences, holidays, and the payment methods used in Mexico. There are 9 geographical regional areas, and 4 cultural regional areas in Mexico - these differences will impact your shipping and marketing.

If you are to build and grow a successful e-commerce business that ships to Mexico, it is very important that you take all of the factors listed above into consideration. With that being said, the Latin American country is one of the best to invest in as they are very active in the e-commerce market, and there are plenty of good opportunities.