Home to 122.3 million people, with a strong middle class emerging with more disposable income than previous generations, Mexico is a great market to consider selling in.
What’s more, with 59.4 million internet users, there is room for substantial growth in Mexican eCommerce – the country has a promising future for online commerce.
In fact, Mexican eCommerce is projected to be worth 17.6 billion US dollars by 2020.
With that in mind, what exactly do you need to know when it comes to selling in Mexico? And which Mexican eCommerce marketplaces should you be listing your products on?
In this article, we outline some of the top Mexican online marketplaces to consider selling on, along with a few key Mexican eCommerce trends so that you can start thinking about expanding your retail business overseas.
Below, you’ll find a brief discussion of three Mexican marketplaces that you can consider for international expansion in Latin America.
Commission: Dependent on product category
Active users: 300 million
Monthly fee: None
As one of the biggest online marketplaces in Latin America, Linio has a presence in eight countries with more than three hundred million registered users.
These countries include:
Despite being in operation for just four years, Linio receives an average of fifty million website visits per month, hosts more than ten thousand marketplace stores and has over three million products available for purchase in the platform’s catalog.
Linio’s primary product categories include electronics, home goods, fashion, health and beauty and kids and babies and the marketplace has thousands of subcategories.
What’s more, no knowledge of Spanish is needed to sell on the Linio marketplace – the eCommerce platform is run in English. Product descriptions can be in either English or Spanish.
There are no monthly account fees, but the platform does charge commission rates on every purchase made. These vary dependent on product category.
Active users: 600 million
Monthly fee: None
With its headquarters based in Argentina, Mercado Libre has a strong online presence in Mexico. The marketplace earns over ten percent of its annual revenue from the country.
Selling on Mercado Libre gives you access to more than six hundred million potential customers and the platform operates in eighteen countries, including:
There are more than one million products sold each day and over six thousand searches per second, making Mercado Libre a lucrative marketplace to consider selling in.
A single account enables you to sell in Mexico, Brazil, Chile and Argentina and you can manage everything from one main platform.
How does it work?
The online seller lists the product in US dollars and all customers pay in their local currency.
It is then Mercado Libre’s responsibility to keep the product price updated in local currencies on its marketplace.
After an item sells, the online seller receives the same amount as listed in US dollars or GB pounds, minus the sales fee that the platform charges all businesses.
When shipping products to customers, online sellers have three options:
What’s more, you don’t need to worry about any language barriers – you can provide your product information in English and the marketplace will automatically translate your product titles and descriptions into Spanish and Portuguese.
Mercado Libre also has a reputation system to help online buyers make safe and secure transactions on the shopping platform.
Similar to eBay, buyers can give positive, neutral or negative feedback on purchases, just as sellers can also leave feedback to their customers. Feedback is hidden until both parties have given their views.
The number of claims against an online seller also influences his or her reputation. Your reputation on Mercado Libre will have a significant impact on the search rankings of your items.
In terms of fees, the Mexican marketplace only charges a fee for the product when it is sold (i.e. commission rates). In Mexico, this fee is 17.5%.
Active users: Unknown
Monthly fee: 600 MXN (£24.42)
Launched in Mexico in 2015, Amazon Mexico stocks all the typical products you expect to find on the marketplace. From cameras to clothes, kindles to consoles and books to basketballs.
However, Amazon Mexico doesn’t sell MP3s through Amazon Music. Instead, the site has a fully stocked CD and vinyl section.
In essence, you can sell a wide variety of products or services that you would sell on any other typical Amazon site. It is interesting to note that one of Amazon’s biggest rivals, eBay, has chosen not to open a marketplace in the same territory.
Already the norm in many other markets, mobile use is on the rise in Mexico.
In fact, in 2018 smartphone devices were the most used devices for online shopping in Mexico for nearly all age groups (except for consumers aged between 46-55).
By 2020, it is expected that the number of smartphone users in Mexico will be close to 68 million and eCommerce revenue generated from mobile devices is expected to reach 16 billion dollars by 2022 (with desktop devices projected to reach 12 billion dollars).
If you’re expanding into Mexico, it’s important to take this rising trend into consideration and ensure that mobile optimization is always taken into account to boost the likelihood of interaction with your website and drive conversions.
Much like the rest of the world, Mexican consumers enjoy free shipping and are swayed by generous returns policies.
In fact, new research has found that 46% of Mexican online shoppers expect free shipping.
What’s more, online consumers are starting to become more demanding and are expecting between 24 and 48-hour delivery timeframes, which is largely due to the influence from big brands, such as Amazon, operating in Mexico.
In a recent study by UPS, it was found that consumers in Mexico expect to be able to place online orders later in the day and still be eligible for next day delivery (86%).
When it comes to international expansion in Mexico, completing your research is key to enjoy success in this market. A good understanding of your target demographic will help you tenfold when it comes to taking your business overseas.
For instance, in Mexico, younger shoppers are the most likely to use eCommerce – those aged between 22-34 make up approximately 39% of all online shoppers. It may also come as a surprise to learn that men aged 25-44 are more likely to shop online than women.
With just under half of the population currently being online, the country has a promising future ahead of itself for growth in the Mexican eCommerce market, making it a great country to consider selling in.
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