The COVID-19 pandemic has dramatically accelerated eCommerce adoption in Mexico. According to the Mexican Online Sales Association, the domestic eCommerce market was valued at USD 19.7 billion in 2021, representing a 27percent increase over 2020. There were 57.5 million Mexican eCommerce users in 2021, an 11 percent increase over 2020. Women represented the 51percent of Mexican eCommerce users in 2020. Experts predict that Mexico will have over 77.9 million eCommerce users by 2025 due to improvements in connectivity, enhanced financial inclusion, streamlined logistics, and increased digital literacy. Still some challenges remain, particularly labor informality rates, low financial inclusion and lack of connectivity.

Current eCommerce Market Trends

In 2021, food delivery led online purchases, followed by fashion and electronics. Appliances and furniture purchases increased by 47 and 42 percent, respectively. 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. The use of cryptocurrency for payments grew from 1 percent to 8 percent during 2021. An estimated 98 percent of online purchases are conducted through Smartphones. 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 Coppel are also ranked top five in the country. Cross-Border eCommerce

The Mexican Internet Association estimates that 50 percent of Mexican online shoppers purchase from international retailers, with 64 percent coming from U.S. sites. Purchases made on Latin American sites have increased in the past two years. 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. WhatsApp is the most-used social network, followed by Facebook and Instagram. The Chinese Tik-Tok has grown significantly and ranked in fourth place in 2021. Mexican buyers are highly influenced by social networks when making purchases. Conversational Commerce or C-commerce (selling via Facebook or WhatsApp) is expected to represent 40 percent of the total eCommerce sales in Mexico by 2025.

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 weekend promotion adopted by most Mexican retailers in mid-November. 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