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Mexican eCommerce is taking over retail

Mexico is the most populous Spanish-speaking country in the world, while being the second most populous country in Latin America after Brazil. And, it is a very interesting country to look at in detail from an eCommerce perspective: The potential is immense and getting bigger and bigger. In fact, the whole digitization of Latin American economies strongly accelerated during the pandemic with retail eCommerce sales in Latin America growing by 37% in 2020, making it the fastest-growing region in the world. And Mexico is no exception.

With the digitization of the Mexican economy, the pandemic triggered Mexicans' online purchases in 2020, while this trend also continued into 2021. According to the “Venta Online 2021” report from AMVO, the eCommerce industry in Mexico reached 316 billon pesos in 2020, reaching a growth rate of 81% compared to the year prior, and representing 9% of total retail sales. Furthermore, eCommerce in Mexico is expected to accelerate and boom in the following years by an astonishing 226% by 2025. Yes, you read that correctly. It is even expected that the eCommerce sector in the country will represent around 24% of total retail sales.

However, and despite being one of the largest eCommerce markets in Latin America, Mexico still has a long way to grow. Internet penetration is booming in the whole Latin American region. Even if Mexico is following that trend too, the internet penetration rate still remains below the 71% mark, while reaching 82% in Chile as a comparison. This should be seen as an opportunity rather than a weakness, as it gives us a hint of the region’s business potential in the future, with millions of Mexicans expected to get access to the internet in the years to come. Moreover, most residents sit at a medium-income level at the moment, which means there is a lot of potential for growth as the wealth of the country increases, and more of its population comes online.

The trend in Mexico shows that more and more people have access to the internet, more and more people buy online, and those online buyers purchase more and more often.This can also be seen in the ever-growing number of participants of commercial campaigns like Hot Sale and Buen Fin, very popular in the country. According to Pulsoline, the Mexican yearly average transaction value in 2021 is already one of the highest in Latin America, standing at $722 per internet user. If you combine this digital literacy with improvements in internet accessibility and a decreasing unbanked population, Mexico makes for a market full of eCommerce potential. Businesses that are selling digital products and that want to expand into emerging markets are well positioned to compete on a global scale using Softline Ecommerce. Our Global Hub for Digital Sales makes cross-border digital sales easy and safe, so that online merchants can reach new customers and grow their business in Europe, Asia and Latin America. We will take care of everything: payment processing in local currencies, invoicing, tax management, compliance with regulations, securing transactions and AI-based fraud minimization. So, if you want to see what we can do together, don’t hesitate to contact us on our website, via Linkedin or email (ecommerce@softline.com).

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