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In Mexico, online eCommerce is constantly growing all the time, every day. If you are thinking of becoming an entrepreneur of an online business or if you already have one, you need to keep updating yourself on what you can do to continue growing and be part of beneficial seasons in electronic commerce.

For this reason, we can support you and let you know about discount seasons such as the Hot Sale in Mexico, market volume, changes in recent years, types of consumers, most sought-after products, most used products and preferred means of payment, as well as which platforms are the most popular used by users in Mexico.

Index

Size of the Mexican online market

According to the Mexican Association of Online Sales (AMVO), Mexico exceeds the world average for online sales and places itself at the same level of countries such as India, Brazil, and Argentina. Of total retail sales, Mexico is one of the countries with the most weight in retail eCommerce with 11.3%, which makes the Asian market its main competitor with China representing 43.9%, South Korea 28.9% and Indonesia 20.2%

In 2020, eCommerce generated a total of approximately $16 billion dollars and represented a growth of 81% compared to 2019.

Growth in recent years 

As for eCommerce in general, the pandemic prompted changes in consumption habits and forms of payment for purchases as the world forcibly emigrated to the digital world. According to the Mexican Association of Online Sales (AMVO), eCommerce in Mexico has grown considerably, thus reaching the top 5 of the markets which grow faster: by 2021 the online commerce grew by 27% compared to 2020.

In a study by We Are Social and Hootsuite, 64.5% of Mexicans between the ages of 16 and 64 make a purchase or request a service online weekly. Of that previous percentage, 39.4% allocate their purchases to groceries and 17.1% to buy second-hand items. In addition, it was found through the study that 17.7% of Internet users consult an online service to compare prices.

Until 2022, purchases of consumer goods through the Internet represent 57.51 million Mexicans who exceed $39.10 billion dollars in the purchase of items, and 37% of those purchases are made through mobile phones.

Regarding the favorite categories, Food delivery (72%), Fashion (64%), Electronics (55%), Culture (52%) and Toys (51%) stood out. For consumers, it was necessary to mention the fundamental reasons why they manage these acquisitions via the Internet:

  • 55% like to receive their purchases at home.
  • At 46%, it allows them to save time and travel to physical stores.
  • For 43% it gives them the opportunity to find products not available in physical stores (whether due to the global supply chain crisis or not).
  • 40% defend that they can carry out their transactions from wherever they are: home, hotel, work.
  • 39% say they find more discounts and rebates through this channel.

Preferred payment methods

The credit and debit card continue to gain ground as a method of online payment.  According to the consumer, the credit and debit card are still the most used payment methods when buying online in all measured categories. Highlight debit card to pay products such as food delivery, culture, children, pets, drinks and automotive. The credit card is used more for products with higher purchase receipts such as Electronics, Appliances, Furniture & Home decor, Consoles and Video Games.

In addition to debit and credit cards, digital consumers also use a wide range of other payment methods, which stand out depending on the type of products they buy. highlight the use departmental card for categories such as Home Appliances, Furniture & Home Decor, Sports, Fashion, Toys and Children. The use of cash on delivery is relevant for food delivery, pharmacy, pantry, pets and drinks. Other methods includes:

  • departmental card
  • Prepaid/gift card
  • Cash payment
  • Deposit/Check/Payment by bank transfer
  • Cash payment on delivery
  • Card payment on delivery
  • e-wallet

Home delivery continues to be the preferred delivery method for digital consumers. However, a trend is detected positive of other delivery methods that were reactivated this year, such as sending to other people’s homes or sending to the office/work. I know observes a drop in the preference for withdrawal points.

Special campaigns: Hot Sale

Hot Sale is a season of online discounts in Mexico and it is organized by the Mexican Association of Online Sales (AMVO) in May of each year. Hot Sale season, in May, was created with the aim of promoting electronic commerce and since it began in 2014, around 1,600 companies have registered, adding nearly 18 million digital users. Thus promoting online purchases, payments by digital means and benefits such as avoiding crowds at physical points of sale. In 2022, the Hot Sale lasted nine days of offers, discounts and promotions from various stores for all types of users.

According to the Mexican Association of Online Sales (AMVO) for the Hot Sale in 2021, 567 million online users, 600 participating stores and 11.6 million online purchases were registered. The AMVO also points out that by 2022 the online buyer is made up mostly of men between the ages of 25 and 44 from Mexico City. In categories, the purchases with the greatest interest were electronics, followed by fashion, household appliances, toys, video games and mobile phones.

Ipsos (Global Market Research and Public Opinion Specialist) and Google Mexico, indicate that in Mexico this sales campaign is known by 79% of consumers and that figure is expected to continue growing, since knowledge of the Hot Sale campaign has also increased fivefold from 2017 to 2022. In addition, it is estimated that it will have a growth of 13.5% in billing by 2022 since the participation of companies also increased by 41%.

The season of Hot Sale promotions is also carried out in other Latin American countries such as Argentina, Colombia and has the support of sponsors and online payment services such as Citibanamex, BBVA, PayPal, MercadoPago, Mercado Shops, FEDEX and Conekta.

The most used payment methods are credit cards with 70%, debit cards with 47%, and e-wallets with 31% (Mercado Pago, Paypal, Openpay, WeChat, etc).

According to the Mexican Association of Online Sales (AMVO), online consumers declared that they find better payment facilities during the Hot Sale, such as monthly payments with no interest or deferred payments. Those consumers represent 49%, while 43% mention that they find more benefits such as coupons, discounts on future purchases, free delivery.

During the promotional season, users can benefit from free or low-cost shipping, and in addition to avoiding crowds, depending on the businesses, they can receive their orders with express delivery or in a few business days. The reasons why eCommerce has grown in terms of shipments is because users save time, transfers and can make transactions and purchases from wherever they are.

Top 5 eCommerce sites in Mexico

 Regardless of the occasion, online shopping should always be done on secure sites for users safety. Some platforms tend to be more popular not only for prices, promotions and products, but also for user experience. That is why the most popular eCommerce platforms in Mexico according to eCommerceDB and its total revenue are:

  1. Amazon. It arrived in Mexico in 2016 from the USA, it has physical stores in Mexico and offers a wide range of products, and many sellers use its marketplace, amazon.com.mx.
  2. Shein. Low-cost fashion from China that is sold on the internet through its app for mobile phones or throughout its website.
  3. Walmart. Retail giant from the USA that arrived in Mexico in 1991 along with Sam’s Club. It includes groceries, clothing and a wide variety of merchandise because more than a supermarket, it is a supercenter.
  4. Coppel. Mexican company from Culiacán, Sinaloa. It was founded in 1941 with merchandise like clothing, toys, appliances and others with a sales model under the granting of credits with few requirements and a rewards program.
  5. Liverpool. Department store in Mexico that arrived in the country in 1847 and continues to position itself as one of the leaders in the country.

Imagen: Depositphotos

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