Is E-Commerce in Mexico Worth It?

For example, statistics show that the number of people who rely on e-commerce websites for their purchases is increasing steadily. In 2018, a whopping 1.8 billion people bought goods online. The generated sales in the same year totaled about $2.8 trillion. Furthermore, projections suggest that the number will grow to $4.8 trillion by 2021.

Seeing how well the global e-commerce climate is doing, the question of having it in Mexico might seem unnecessary. But then, you have to understand that these purchases are largely made up by the U.S.A. In fact, in 2018, U.S shoppers spent a total of $126 billion in the holidays alone. Clearly, there seems to be a biased distribution in the usage of e-commerce.

E-commerce usage in Mexico so far

Articles like Comercio electronico outline the basics of running an e-commerce business in Mexico. It stands to reason that this, and other related posts, have contributed to the current climate of e-commerce in the country.

In 2016, Forbes estimated that the e-commerce market in Mexico was worth about $12 billion. By 2017, that figure had grown to about $21 billion. It’s obvious that there’s a growth in the industry. However, the growth is still minuscule, compared to the total advancement of e-commerce all over the world.

Is the e-commerce space in Mexico already oversaturated?

Some of the most popular eCommerce websites in Mexico include Mercadolibre, Linio, and Amazon. Even though these websites offer various products, they all center on the same niche.

Since the adoption in the e-commerce climate in the country is comparatively low, it’s easy to think that setting up another e-commerce website isn’t a worthy venture. Traditional wisdom suggests that you occupy a small niche with lots of room for improvement. Considering the fact that large brands like Amazon and Linio are already occupying the space, is it still worth it?

Surprisingly, the truth is actually the opposite of the above assumption. The very fact that there are established brands in the space is a good reason to get into it. For one thing, the e-commerce space is only going to keep growing. It’s fueled by the Internet and people’s search for lower prices and convenient shopping experience. As long as e-commerce continues to meet these needs, it can only grow.

Additionally, you can expect the presence of these brands to pull public interest and increase overall patronage. If the Internet’s adoption has shown anything, it’s this: As long as there’s a convenient way to do things, people are going to adopt it. With this logic, as long as there’s an option for an easier shopping experience, you can expect Mexicans to take it.

The bottom line

All facts indicate that the e-commerce space in Mexico is ripe for exploration. The presence of large brands only means there’s a great opportunity there. It’s only a matter of time before things take off.