Have you thought of starting you own eCommerce business in Mexico? We can help you find out everything you need to know, like the scope of sales, the type of products or services that the Mexican population favors, and guide you on how marketplaces work and the regulations or legal procedures. The opportunities to grow an online business have multiplied, the scope has expanded and the scenario is quite optimistic due to the migration from regular commerce to electronic commerce.
It is important to know the financial market of the country in which you are thinking of launching your business, in this case, we will talk about Mexico. On the website of the Mexican Stock Exchange, you will be able to know the financial situation and on the website of the Bank of Mexico updated indicators by type of industry.
Operations of the organized securities market in Mexico are carried out in the Mexican Stock Exchange, its objective being to facilitate transactions with securities and seek the development of the market, promoting its expansion and competitiveness.
The Mexican Stock Exchange (BMV) registered a decline of 0.62% in its main indicator in January 2022, due to low trading volume. The Price and Quotation Index (IPC), the main indicator of the Mexican Stock Exchange, closed the first session of the year in negative numbers and showing low liquidity, with the volume of operations being 64% below that observed in the last 100 days. There was also a decline in the real estate sector (-4.1%) and basic consumption (-1.21%).
The volume traded in the market reached 93.3 million titles for an amount of 386.5 million USD.
Mexico is one of the main e-commerce markets in Latin America, along with Brazil, Argentina and Colombia. In 2020, it was estimated that more than 39% of the Mexican population purchased products or services online. Three years earlier, in 2017, the percentage of digital buyers in the North American country did not exceed 30%. It is estimated that this growth will continue in the coming years, approaching 58% penetration in 2025.
Mexican e-commerce was already growing more than other sectors before the COVID-19 pandemic, this trend intensified with the outbreak. According to data published in June 2020 by Statista, e-commerce sales revenue between March and April of that same year showed a growth rate of 500%.
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 growth of online commerce grew by 27% compared to 2020.
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 in Mexico generated a total of approximately $16 billion dollars and represented a growth of 81% compared to 2019.
We Are Social and Hootsuite indicate that 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. According to data published in June 2020 by Statista, e-commerce sales revenue between March and April of that same year showed a growth rate of 500%
The change in the market was also seen in the purchase categories preferred by consumers, with food delivery (72%) being the segment with the highest percentage of buyers, followed by fashion (64%), electronics (55%) , culture (52%) and toys (51%) according to the study of the website El Empresario in conjunction with AMVO.
We all have heard the terms Marketplace and eCommerce, but what does each one stands for?
It is a website that sells products from multiple sellers, so there is a wide variety of products that attract different types of consumers. It consists of a marketplace administrator (owner of the website), vendors (Amazon, Mercado Libre, etc.) and customers. The way marketplaces earn money is by charging a commission from sellers and customers.
There are many benefits involved in it, like vendors do not have to worry about website maintenance nor performance, and they can even linked their products to their social media accounts.
It is a website that sells products of only one vendor to a wide variety of customers, so the website belongs to the vendor and two unique parties are involved, the seller and the buyer. The owner has to make sure the website is always running and has to offer a secure shopping place. Nowadays, anyone can start an eCommerce business through multiple eCommerce platforms such as Shopify, Magento, Woocommerce, Prestashop…
Both types of online businesses have pros and cons, so it’s up to each person to decide which one works best for their type of business and go for it.
So, to establish your eCommerce business successfully:
1.Choosing a marketplace, such as Amazon or Mercado Libre, or creating your own online store.
You must enter into a contract with the provider where issues such as platform control, domain use, passwords, industrial property, etc. are established and clarified. confidentiality clauses, treatment of codes and other applicable ones.
2. Constitutive Act – essential legal instrument to form a company or organization. You will have two possible scenarios:
3. Register your brand in the This registration process can be done through the IMPI website. Its cost varies between USD $150-$180 and the duration of the procedure can be 6 months.Mexican Institute of Industrial Property.
4. Register your domain. In Mexico, you should go through NIC Mexico (Network Information Center Mexico) or NIC.MX, the organization responsible for managing the territorial code (.mx). The value of this procedure ranges from USD$11 to USD$40 depending on the extension requested and you can do it through the NIC Mexico page. Once the payment is made, in a maximum of 48 hours you can have the domain of your E-commerce company.
5. Use of Personal Data. Electronic commerce is closely linked to the collection and use of personal data to fulfill its objective, therefore, it is important that as the owner of an E-commerce in Mexico you know the Federal Law on Protection of Personal Data Held by Private Parties.
Following said law, you must create a privacy notice in which the user is notified of the personal information that will be collected, the purposes of its treatment and the means through which they can oppose or exercise their right of Access, Rectification, Cancellation and Opposition..
On April 30, 2019, the Dirección General de Normas of the Ministry of Economy published in the Official Gazette of the Federation (DOF) the Declaration of Validity of the New Mexican Standard (NMX) of Electronic Commerce, which has the purpose of guaranteeing the rights of consumers who make purchases by these means, will seek an equitable legal framework that facilitates the conduct of commercial transactions, providing certainty and legal certainty.
It establishes that the consumer must be informed by the supplier about the right he has to revoke his consent without liability or justification, within the next five days from the delivery of the good or product or the acceptance of the service. The supplier must also provide its commercial name, brand, denomination or business name, Federal Taxpayer Registry, physical address within the national territory, telephone number and email in order to follow up on the transaction or complaints that may arise.
The supplier must provide a section so that consumers can rate and comment on the products and services purchased, as well as their experience during the purchase. It is very important that the cost of the product or service must be informed in its entirety, including taxes, shipping costs, discounts or additional charges in national currency.
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