During the COVID-19 pandemic, Mexican eCommerce saw a dramatic acceleration. Although the market continues to grow, it is showing slightly lower growth rates. According to the Mexican Online Sales Association, the domestic eCommerce market was valued at USD 26.2 billion in 2022, representing a 23 percent increase over 2021. Mexico is positioned among the top five countries in the world in terms of eCommerce retail growth rate. There were 63 million Mexican eCommerce users in 2022, an increase of 5.5 million over 2021. Women represented 51 percent of Mexican eCommerce users in 2021. Experts predict that Mexico’s eCommerce market value will reach USD 70.4 billion by 2027 due to improvements in connectivity, enhanced financial inclusion, streamlined logistics, and increased digital literacy. Some challenges remain, particularly low financial inclusion, lack of connectivity, and labor informality rates, which represented almost 24 percent of the Mexican economy during 2022.
Current eCommerce Market Trends
In 2022, food and grocery delivery led online purchases, followed by fashion, medicines, and beauty and personal items. It is important to highlight the growth in first time buyers of auto parts and electronics, which grew by 51 and 45 percent, respectively, compared to 2021. Debit cards and personal credit cards continue to be the preferred methods of payment. However, many online retailers offer payment alternatives. Cash is an important method for verticals such as convenience stores, restaurants, and pharmacies. Installment purchases without a card gained relevance among buyers. An estimated 98 percent of online purchases are conducted through Smartphones. There is great interest in purchasing from business models that are linked to environmental issues and fair trade. According to the Mexican Association of Online Sales (AMVO), 60 percent of online buyers are interested in buying from places that offer ecological packaging and 35 percent have expressed interest in buying from agricultural and indigenous cooperatives. Products sold online are covered by Mexico’s Federal Copyright and Industrial Property Law.
Domestic eCommerce (B2C)
Mercado Libre is the preferred marketplace, followed by Amazon, Walmart, Liverpool and Chinese Shein.
Cross-Border eCommerce
The Mexican Internet Association estimates that 80 percent of Mexican online shoppers purchased from international retailers during 2022, versus 50 percent in 2021, with 49 percent of those purchases coming from U.S. sites, versus 64 percent in 2021. China follows with 34 percent. Mexico’s current de minimis level is USD 50, much lower than the de minimis of USD 800 in the United States. Goods valued from USD 50 to USD 117 are charged a 17 percent tasa global (overall rate) upon importation. Goods valued from USD 117 to USD 1,000 are charged 19 percent, and goods above USD 1,000 are charged 20 percent.
Social Media and Digital Marketing
The use of social media is widespread in Mexico. Facebook and WhatsApp are the most-used social networks, reaching 93 percent of the Mexican audience, followed by Facebook Messenger and Instagram. The Chinese social media company Tik-Tok has grown significantly and reached 73.6 percent of the audience in 2022. Mexican buyers are highly influenced by social networks when making purchases. Forty-three percent of eCommerce buyers have bought via Conversational Commerce or C-commerce (selling via Facebook or WhatsApp), and 29 percent through “lives” or livestreams.
Major Online Buying Holidays
Retailers report the highest number of eCommerce sales during the December holiday season. The second-largest online shopping event is ‘El Buen Fin,’ a promotion adopted by most Mexican retailers in mid-November that started as a weekend event and has transformed into a week-long promotion. The next largest events are Black Friday and ‘Hot Sale,’ a Mexican Association of Online Retailers initiative where eCommerce vendors offer significant discounts in late May/early June. Other major buying holidays are Cyber Monday and Mother’s Day.
Resources
The U.S. Department of Commerce has developed an eCommerce portal offering resources to support U.S. exporters in improving their online business presence, including a free consultation, website review, and list of eCommerce service providers. For more information, please contact your local International Trade Specialists.
- Mexican Internet Association
- Mexican Online Sales Association