Ecommerce market in Mexico indicates recovery after pandemic, EBANX study shows
June 8, 2020
Fintech company conducted a survey with more than 1,600 consumers of international websites in Mexico. Results show that Mexicans will maintain or increase the average ticket and purchase frequency during the pandemic and after the COVID-19, especially the ones with lower average tickets
CURITIBA, BRAZIL, June 8, 2020 – A great share of Mexican online consumers intend to increase or maintain their spendings on international websites during and after the COVID-19 pandemic period is over, as shown by the most recent research conducted by EBANX. The fintech company launched The Influence of COVID-19 on International Online Shopping in Mexico: Purchase Intent and Payment Preferences study, with information on the impacts of the new coronavirus pandemic on the international ecommerce market in Mexico and on post-pandemic perspectives for this market.
Almost 80% of Mexicans who are spending an average ticket of up to MXN 100 per month during the COVID-19 outbreak said they will maintain or increase their spendings once the pandemic is over. Among those with a higher average ticket now, of MXN 200, MXN 300, and MXN 400, the percentages are 44%, 42.8%, and 37.5%, respectively, according to the study that can be downloaded here.
"The intention of recovery shows up massively among the ones that are currently spending less. And even among higher average tickets, it is also really strong. Data like these point out that Mexican consumers are open and tending to restore their consumption habits moving forward," analyzed André Boaventura, partner and CMO of EBANX. "The pandemic is having a major impact in global trade and in the economy of all countries, so an intention of recovery like this one is very significant," he added.
The survey for The Influence of COVID-19 on International Online Shopping in Mexico: Purchase Intent and Payment Preferences study was conducted from May 5 to May 18, 2020, among Mexicans who buy from international online retailers that are EBANX merchants. The goal was to understand the current behavior of these consumers, considering social distancing measures and other impacts of the COVID-19 pandemic in Mexico, in addition to having a perspective on how they expect to consume on international websites in the post-pandemic days. 1,660 people from across the country responded to the survey.
Signs of recovery even during the pandemic
The appetite of Mexican consumers might be giving signs of recovery just now, during the pandemic. Frequency data of the research show that more than half (53%) of the ones who used to buy frequently from international ecommerce platforms – at least once every three months – said they will keep or even increase their shopping frequency during the COVID-19 pandemic. This is even more significant if you think that consumers with this shopping frequency represent almost 60% of all the survey's respondents.
A possible decrease in shopping frequency during COVID-19 is closely linked to household income. 39.6% of the ones with high income said their shopping frequency will decrease during the pandemic, just like 35.5% of upper-middle-class Mexicans. The percentages for lower-middle-class and people with low income are higher: 48.2%, and 47.6%, respectively.
"Although the percentages of decreased intention are high, they are no higher than 50%, which is very significant considering the economic impacts of COVID-19," pointed out Boaventura. "International ecommerce websites offer a great variety of quality products, from state-of-the-art smartphones to bed sheets. Even in challenging times, and with high exchange rates, they still offer competitive prices, being a good option for Mexican and other Latin American consumers, regardless of their family income. This is reinforced by the data collected in our research," he completed.
Local payment methods are essential in Mexico's ecommerce market
Among the 53% frequent shoppers that will maintain or increase their shopping during the pandemic, 8 out of 10 prefer to pay for it with a debit card or OXXO – a voucher that allows offline payment, with cash, at convenience stores.
Almost all respondents of the survey (98.3%) said they will not change their usual payment method for online purchases on international websites during the COVID-19 pandemic. The majority (almost 82%) of all OXXO users declared they would still use it for international purchases even in a scenario of compromised working hours of OXXO convenience stores. And among the ones that would not continue to use it, the alternative was to give up the purchase for 42.4%.
"Local payment methods like debit cards and OXXO play an important role in online purchasing in Mexico, regardless of the family income range. It was like this before the COVID-19 pandemic and it continues to be like this now. Making international shopping easier for Mexican consumers means offering these options," Boaventura evaluated.
Similarities between Mexico's and Brazil's markets' recovery
At the end of May 2020, EBANX launched the Brazil edition of the study. And the findings show similar results between these two Latin American powerhouses. Like with Mexican online consumers, there is an intention of gradual recovery of Brazilian consumers' appetite.
During the pandemic, more than half (52.3%) of Brazilians who spent up to BRL 60 on international ecommerce before the COVID-19 foresee that they will maintain or increase spendings while the COVID-19 lasts. This is also true in terms of frequency: 53% of who shopped frequently on international websites before the pandemic (at least once every three months) declared they will maintain or increase it during the pandemic.
"The intention of consumer appetite recovery shows in both markets. This is very significant in terms of recovery of the Latin American region itself, and is also important for global trade, considering that Latin America is the targeted market for international expansion of many global digital commerce companies," stated Boaventura.
Link to download the complete report:
EBANX is a leading global fintech company with Latin American DNA which has recently reached the unicorn status. It has operations in Brazil, Mexico, Argentina, Colombia, Chile, Peru, Ecuador, and Bolivia. The company was founded in 2012 to bridge the access gap between Latin Americans and international websites. Currently, EBANX offers over 100 Latin American local payment options to global merchants and has already helped 55 million people to access global services and products, with over 1,000 merchants expanding to Latin America. AliExpress, Wish, Pipedrive, Airbnb, and Spotify (these two in a partnership with Worldline) are some of the companies that use EBANX solutions. In 2019, EBANX started to offer local payment processing solutions in Brazil through a new company, EBANX Pagamentos Ltda. In early 2020, the company entered the B2C world, with the launch of EBANX GO, a digital payments account with virtual and physical cards for Brazilian consumers. For more information, please visit https://business.ebanx.com/.
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