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Mexico is an attractive market for the ones who are trying to start a new business in latinoamerica. Especially in online commerce, as it is experiencing constant growth and more and more people are betting on the Mexican market.

According to Mexican Association of Online Sales (AMVO), Mexico has reached a market value of 658.3 billion pesos ($393.9 million) in 2023.

5 things you should know before starting doing business in Mexico

The official name of Mexico is the United Mexican States and it is the 13th largest country (by area). Mexican population ascends to almost 130 million people. It is conformed by 31 different states, being Mexico City the capital of the country.

1. Localization and trade agreements

Its proximity to the United States gives the country an advantage in logistics. It also shares borders with Guatemala and it is near to the rest of latinoamerican countries such as Argentina or Brazil, where online market is also taking off.

In recent years, Mexico has experienced a great growth in population as well as in economy, making it a developing country with a promising future. It is a member of the United Nations, the Organisation for Economic Cooperation and Development (OECD), the USMCA (formerly NAFTA) and many more global organisations.

According to the International Trade Administration, Mexico has 13 free trade agreements with 50 countries, which makes it a perfect option to start a business.

2. Overview of the online sector in Mexico

Retail sales triumph with a 24.6% increase compared to 2022. In fact, in general terms Latinoamerican is the market leader in retail sales according to AMVO.

The fastest growing categories in 2023 were fashion, small household appliances, non-alcoholic beverages and beauty and care. So if your business is focused in one of these sector, you could be the lucky one.

3. Mexican consumer profile

Most of them uses the internet to find information and being on social media, but there is great amount of people who uses to do online shopping.

Almost 66 million people acquired a product through a digital channel. As we told you in our article about the state of the internet in Mexico, the 83.7% of the total population are internet users and most of them are between 25 and 34 years old. We are talking about a young consumer profile.

4. Preferred payment methods

Acoording to We Are Social, the most used payment method in Mexico are debit and credit cardas (55%) followed by mobile wallets (22%).

Be aware that if your eCommerce provides one of these options to your clients when paying, you will improve their experience. Some examples of payments solutions you can include in your eCommerce are Amazon Pay, Paycomet or Worldline. 

5. Know your competitors

Depending on the sector of your business you will have differente competitor both national an international ones.

Mercado Libre is the top eCommerce leader in the country as it is the 14th most visited website according to the Similarweb ranking. Obviously, the eCommerce giant, Amazon is also among the most popular ones.

Pharmaceutical sector is leaded by Famacias del Ahorro and in retail, Liverpool is the one who owns the largest chain of departments stores in the country.

 

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