Mexico is one of the top two countries with emerging markets in all of Latin America. Within this market, there are 82.5 million internet users, a number that continues to grow rapidly. This internet boom is making e-commerce in Mexico a favorite place for online brands.
Of course, you’ll want to be apart of the action. In this overview, we’ll be going over:
- The Mexican Consumer Online
- E-Commerce Trends in Mexico
- Forms of Payment in Mexico
- Challenges of E-Commerce in Mexico
- Can My Business Succeed In Mexico’s E-Commerce Market?
So, let’s get into it!
The Mexican Consumer Online
Mexico has a population of 129.2 million people, of which, about 60% has access to the internet. As these countries get more digitized, the more online consumers enter the market.
Part of the magic of this growth is due to the populations within Mexican society that have access to the internet.
Consumers by Demographics
26% of children ages 6-18 have access to social media. This means that there is a new generation of the population that will and have grown up with access to social media. E-commerce marketers absolutely have an adolescent population to market towards.
40% of Mexicans ages of 18 and 34 have access to the internet as well. As this is a demographic that is most likely to be looking for opportunities to buy products or services online, it would be wise for marketers to consider this age group.
Upwards of age 45, internet usage begins to dwindle from 12% to 8%. This is expected to grow as older Mexicans get more familiar with new technology.
Check out some more facts about Mexico’s e-commerce market in this cheat sheet below!
E-Commerce Trends in Mexico
What are the hottest industries and attractions of Mexico’s e-commerce market? We go over what you should be paying attention to if you are interested in doing online business in Mexico.
Here are the latest E-commerce trends in Mexico!
Mexico boasts Latin America’s fastest-growing retail market with its growth contributing to 35.9% of the region’s retail sales. Industries like fashion and shoemaking are on the rise and are expected to see some more competition this year.
Soriana’s is a rising supermarket that is gaining more and more ground in the Mexican Market. U.S. brands like Home Depot and Walmart are trying to get a piece of the pie and beginning to ex[and into the country.
However, think of all of the supermarkets that exist in the U.S.
Walmart, Safeway, Alberton’s, Publix.
There is room for more giants to be created and/or enter the Mexican market to help nourish the economy it serves.
Mexico has a booming tourist market. Companies such as Despegar have noticed that people want to visit Mexico. They want to see it through the eyes of locals and learn about Mexican culture.
Tourism has many branches as to how it helps the local economy bolster more jobs while allowing for fruit international collaborations.
We also cannot forget the journey to Mexico. Aeromexico and Interjet are airlines that are seeing an increase in in-flight sales. Air travel offers great opportunities for business such as what kind of chairs and blankets the plane will have.
You may be looking to Mexico for e-commerce opportunities, but many people are just looking to Mexico to experience what the country has to offer! I encourage you to visit to get to know the local culture and better serve your potential customer base.
Favorable Business Climate
Mexico’s government has been working to make foreign investment in Mexico as easy as possible.
This goal has led to 32 Reciprocal Promotion and Protection of Investments Agreements with:
- 33 countries
- 10 free trade agreements spanning 45 countries
- 9 partial scope and economic complementation agreements within the framework of the Latin-American Integration Association (ALADI)
Mexico is also a member of the Trans-Pacific Partnership Agreement (TPP)!
Long story short. Mexico has a potential market of over a billion consumers due to its partnerships.
No Established Loyalty!
Due to the country’s new, yet emerging internet access, there is the opportunity for companies to establish themselves as giants here.
Forms of Payment in Mexico
Now, how is all this money being moved? Below are the most popular forms of payment in Mexico today:
Local bank cards
Through the use of local banks in Mexico, online financial scammers have less access to account information. Instead of websites and free giveaways having all of your personal and financial information, local banks in Mexico are close to the customer base.
It also gives Mexican citizens quick access to their cash without fear of fraud. There are more people using their bank account to withdraw money from the ATM then as a payment source for online purchases.
Disclaimer: Many retailers do not even offer a debit card payment option.
Look into making local Mexican bank partnerships if you are an e-commerce retailer.
In that, there can be a limited amount of networks that release people’s personal information online. Also, brainstorm more ideas on how to get the money from the customer to your business without the customer feeling unsafe.
OXXO is an offline payment method that enables customers to pay for products and services in installments without interest. OXXO invoice is a document with a bar code issued by the seller that can be paid by the buyer at one of the 13k convenience stores in the country.
SPEI stands for Interbanking Electronic Payment System and was developed by Banco de Mexico to offer a secure online payment method by facilitating electronic money transfers and payments through online banking nearly instantaneously.
Do not hesitate to create systems and technology that includes the use of the foreign currency in some way, shape, or form. Since online payments can be met with fear, it may be wise to ease customers into trusting the internet more and more by providing flexible payment options.
This will depend on your service or product of course!
Can My Business Succeed In Mexico’s E-Commerce Market?
The short answer? Yes.
The longer answer? Although the Mexican e-commerce market is teeming with opportunity, you will face challenges if you do not prepare with experienced digital marketers in Mexico.
Learn the nuances to Mexico’s financial culture and pay attention to the trending market right here at Colibri.
Interested in other e-commerce markets and opportunities in Latin America? Check out this article on the emerging e-commerce market in Brazil.