Why Amazon.mx Might Be Your Next Marketplace

Discover why you might want to consider expanding your business to Amazon.mx in this guest article from Australis Localization.

The pandemic that the whole world is bearing has had a great impact on the shopping habits of a significant part of the world’s population and speeded up the online sales system development by several years. Out of all Latin American markets, Mexico is the highest growth eCommerce market and the second largest market after Brazil.

Mexico’s case is particularly interesting since, together with the pandemic situation that has changed the normal course of good and service in-store shopping, several factors come into play causing the Aztec country to see exponential growth. It is an extremely interesting market to consider for broadening the horizons of your Amazon business.

This article will address the current context of eCommerce in Mexico and the reasons why conditions are perfect to initiate the process of entrance into the great sales platform that Amazon.mx (also known as Amazon.com.mx) has become.

eCommerce in Mexico

Let us begin by looking at the state of eCommerce in Mexico. Wearesocial.com offers us an in-depth analysis of the consumer landscape of Mexico in 2020.

A brief summary of the key data for Mexico shows us that:

• 92% of internet users aged 16-64 own a smart phone.
• The total population of Mexico is 128.3 million. There are 89 million people with access to the Internet.
• Amazon.com.mx and Amazon.com are the 10th and 13th most visited websites, respectively, according to Alexa.
• Sales have increased in all product categories.
• According to the most recent study, over 64 million people have shopped online.

Statista reports that revenue in the Mexican eCommerce market is projected to reach $18,764 million this year. The largest segment of the market is Electronics & Media.

eCommerce Consumer Profile

According to the Mexican Association of Online Sales (Asociación Mexicana de Ventas Online, AMVO), we see the following key information about the average Mexican online consumer:

• 9 out of 10 shoppers are satisfied after receiving their online purchase. This suggests that shoppers are likely to leave positive ratings.
• 8 out of 10 Internet users have purchased a product or service online in the past year.
• 82% of online shoppers consider that the appearance of a website influences their purchase decision. As always, your listing appearance is very important.
• According to Mexicans, convenience is the main reason for buying online.

Other top reasons for online shopping in Mexico are to take advantage of special offers/discounts, to find products that are not available in stores/sold in Mexico, and to save time. If you sell a product that is in demand but not widely available in Mexico, you may see great success by listing the item on Amazon.mx.

PayPal, debit card, and credit card are the main payment methods used in for purchase. Mobile shopping is very popular.

Amazon.Mx Continues to Grow

According to Ecommerce Guide the most visited eCommerce platforms in Mexico are:

• Mercado Libre
• Amazon Mexico
• Walmart Mexico
• Coppel
• Liverpool
• Sam's Club
• Home Depot Mexico
• Best Buy Mexico
• Sears Mexico

In an interview published by Milenio.com, Amazon Mexico Operations Director Luis Correo provides some clues about the chance taken by the North American giant on its establishment in Mexico.

“The company has 50 million users in our country; its goal is to keep on growing with increasingly faster deliveries and technology,” Correo stated.

He also discussed the importance of MEX3 distribution center, which is the largest distribution center in Mexico and Latin America with 100,000 square meters. Millions of products are stored at MEX3 for fast shipping all over the country.

Shipping times are getting faster for Amazon.mx customers. Currently, some products are available for same day delivery in Mexico City. Amazon.mx provides one day shipping to more than 25 cities and two day shipping throughout the country.

According to Amazon's seller guide, signing up to sell on Amazon.com.mx means that your account is automatically enabled for selling in Canada and the US as well as Mexico. Learn more about North American Unified Accounts.

Grow Your Business in Mexico

After having made a contextual study of eCommerce in Mexico, we can draw some conclusions.

First of all, it should be said that the population of the Aztec country is extremely large, with a total population of almost 130 million people and a high Internet penetration rate.

eCommerce is clearly at a growth stage. If we add the fact that the Mexican middle class is growing and online shoppers have increasing advantages when it comes to online shopping, the eCommerce scenario is envisaged as ideal and favorable to operate in Mexico.

On the other hand, the situation caused by COVID-19 has speeded up digital development by at least 3 years, creating new and widespread consumer habits.

This is what I call cascade effect, that is to say, users with high online shopping habits have scaled to a super-high level; those at a middle consumption level have moved to a high level and so on and so forth down to the base. Here the change from not having made any purchase online to making several purchases appears, thus generating the great change, the new habit.

When it comes to Amazon.mx, we should remember its strong points, which are the following:

1. Amazon.com takes a strong chance on Mexico.
2. It is the natural entrance into the rest of Latin America.
3. Amazon offers consumer protection, which is a highly appreciated value in Mexico. The reputation and reliability of Amazon are its business card.

Mexico is an international market that, due to its nearness, size, special circumstances, and a projected exponential growth, serves a great opportunity for growth and expansion for US sellers and beyond.

If you are considering getting started with selling your products in Mexico and need assistance, contact Australis Amazon Mexico Experts.