eCommerce growth in Mexico has been developing non-stop in recent years. As a direct result of the COVID-19 pandemic, one out of every five eCommerce companies had an expansion of more than 300% in 2020. This is a substantial difference with respect to the growth from 2018 to 2019. When it comes to 2021, it is projected that, for 19% of eCommerce companies in Mexico, online sales will represent over 30% of their cumulative sales for the year. Aaron Rodriguez, an eCommerce analyst and expert, explains the behavior that has led to higher growth during 2021.
Although the growth of eCommerce in Mexico in 2020 and 2021 has been accelerating, it should be pointed out that this is a general trend that doesn’t focus only on the Central American country. In fact, the amount of capital transferred through online commerce has been rising year after year across the globe.
“During the pandemic, countries have had to implement measures of control and social distancing, which, although a requirement for the protection of public health, have had serious consequences on economies. However, in a contrary way, they have had a positive impact on online sales,” says Rodriguez.
There are several main reasons why electronic growth in Mexico has lied and will continue to lie during recent and future years. For starters, it is clear that this type of commerce facilitates social distancing. According to several studies, 62% of people buy online because they receive products at home. Rodriguez explains, “This is a cause that has always promoted the increase of eCommerce. However, more than just convenience, home deliveries have become a fundamental practice to respect confinement and distancing measures during the pandemic by COVID-19.”
In this way, secure deliveries have enabled consumers to continue to make their purchases from home, without having to visit a commercial establishment in person. On the other hand, eCommerce fosters internationalization from Mexico. eCommerce trends are present all over the world. This has meant that, independent of the economic situation of an individual country, businesses are venturing into eCommerce to sell goods to consumers wherever they are in the world. The converse is true, as well, as Mexican consumers are now able to make purchases from eCommerce retailers from other countries with great agility, which facilitates globalization in Mexico.
eCommerce is an opportunity for all Mexican businesses. Whether new or traditional, eCommerce in Mexico has been an opportunity for businesses of all kinds, which have seen the Internet as the perfect showcase to reach more customers.
It cannot be overlooked that making sales over the Internet is cheaper than doing it physically. In principle, shipping costs and the logistics can make the purchase more expensive. However, Mexican eCommerce is giving many companies more freedom, eliminating the cost of maintaining physical stores. Many of these are located in central urban centers, which are often more expensive for businesses, and the shift to online operations is giving them a greater margin of income. As a result, retailers are the first to focus on online sales, boosting the eCommerce boom even more and helping to explain the growth of eCommerce in Mexico.
“The advantages of eCommerce have driven this business model to be implemented in multiple ways,” Rodriguez asserts. “For example, there are companies that prefer to sell online through marketplaces such as Linio, MercadoLibre and Amazon. Others, on the other hand, are making inroads with the social commerce modality, which consists of selling products through social networks such as Facebook and Instagram.”
Rodriguez is clear that COVID-19, like many other events that have had an impact on the history of mankind, has taught us that human beings have a great capacity for adaptation and resilience and that it is precisely this characteristic that allows us to adopt new customs, and eCommerce has been one of them.