The Growing Mexican E-Commerce Market
It seems like all eyes are on the Latin American market right now and one country starting to get some attention as an e-commerce destination is Mexico. E-commerce sales in Mexico are growing at a rapid rate and will continue to climb.
The thriving middle class and rapid growth of internet connectivity make the Mexican e-commerce market attractive. More internet users means more opportunities for e-commerce. The number of digital buyers in Mexico is expected to grow by 114% by 2018, a much higher growth rate than Brazil or Argentina. Smartphone adoption is also encouraging online spending. 57% of Mexican consumers own a smartphone and 20% have already made a purchase with their mobile device.
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While e-commerce is thriving in Mexico, there are definitely some challenges that come with doing business in the region. For starters, Mexico is still largely a cash economy with only 13% of adults holding a credit or debit card. Even those with cards don’t feel comfortable giving out their information online and want to pay cash on delivery. This leads to restricted payment options for merchants.
Logistical challenges present a problem as well. Complicated tariff and tax structures, and expensive and unreliable shipping methods are just a few of the challenges merchants need to be aware of. Mexican consumers will abandon their shopping carts if the extra fees and shipping costs are unclear. Merchants need to be aware of this worry and make their policies as clear as possible on the website.
The Mexican e-commerce market is definitely one to watch with its growing affluent population and heavy online spenders. To be successful in the region merchants need to concentrate on providing reassurance to consumers as well as fast, reliable, and cost effective delivery methods. As we’ve seen, mobile purchase intent is high so a mobile friendly site should also be a high priority. By understanding that shopping behaviors of consumers will differ from region to region, and even within the region, merchants will have the best chance to take advantage of e-commerce growth in Latin America.