Aaron Rodriguez offers insight into how COVID-19 changed eCommerce in Mexico

The growth of eCommerce in Mexico has been developing continuously in recent years. For example, as a result of the coronavirus pandemic, two out of ten eCommerce companies had an expansion of more than 300% last year, marking an extraordinary difference with respect to 2019, as indicated by the study COVID-19 Impact on Online Sales Mexico, on the growth of eCommerce in Mexico in 2020. Aaron Rodriguez, an expert in optimizing eCommerce operations, explains in more depth what impact COVID-19 has had on eCommerce throughout Mexico.

For this year, it has been projected that, for 19% of companies in Mexico, online sales will represent more than 30% of their total sales. In this context, knowing the evolution of eCommerce in the country is of utmost importance for Mexican companies, so they can take the necessary steps to implement the digital transformation as soon as possible, adopt the online commerce model, improve eLogistics processes, and reach a larger mass of consumers.

Although the growth of eCommerce in Mexico during 2020 and 2021 has been accelerating, it is important to clarify that this is a general trend and cannot be reduced only to the Latin American country. In fact, the volume of money moved through online sales has been increasing year after year in all regions of the planet. For example, a study conducted last year estimated that at least 10.8 million consumers will have made their first online purchase by 2020. However, the fact that e-commerce in Mexico is growing, despite the global boom in this type of transaction, is particularly striking considering the country’s economic growth.

Rodriguez explains, “During these times of pandemic, in which the State has had to implement measures of national confinement and social distancing, which, despite being necessary for public health, have had serious consequences for the national economy, but which conversely have had a positive impact on online sales.”

As an example of this, it is worth noting that eCommerce in Mexico facilitates social distancing. According to the study of eCommerce related to online sales in Mexico, 62% of people buy online because they receive the products at home. This is a reason that has always favored the eCommerce boom. However, beyond simple convenience, home deliveries have become a fundamental practice to respect containment and distancing measures during the COVID-19 pandemic. In this way, secure deliveries have allowed people to continue to make all their purchases from home and without the need to go in person to commercial establishments.

It is clear that COVID-19 has had a global impact, and therefore, the eCommerce trend has had a worldwide presence. This has meant that, regardless of the economic situation of each country, companies are being able to venture into eCommerce to sell products to consumers anywhere in the world, without the need to experience the relocation of the company. The same happens the other way around, as consumers in Mexico are able to buy from online businesses in other countries with great agility, which facilitates globalization in Mexico. All this is possible because transportation providers are usually the ones in charge of international logistics.

Rodriguez has also made it clear that eCommerce in Mexico is cheaper for businesses. “The fact that selling online is cheaper than selling physically cannot be overlooked,” he explains. “It is true that, in principle, shipping costs and the logistics service associated with shipping can make the purchase more expensive. However, eCommerce in Mexico is freeing many companies from the cost of maintaining physical stores, many of them in central urban centers where rents are high.”

As a result, retailers themselves are the first to focus on online sales, which further boosts the eCommerce boom and helps explain the growth of eCommerce in Mexico.