Mexico – The eCommerce Jewel In LATAM’s Crown

In 2020, over 267 million people in Latin America are expected to buy goods and services online. Accounting for 29 percent of the e-commerce market in the region, Mexico stands as the second Latin American country with the highest revenue in the sector, generating approximately 22 billion dollars in 2019. In full development, the future of e-commerce in the North American country appears to be promising. In addition to being the economy with the highest growth in online retail sales worldwide in 2019, forecasts indicate that the segment will keep on growing in the coming years.

Mexico represents a hugely attractive opportunity for eCommerce brands and retailers. As the fastest growing market in Latin America, the potential rewards are great – for those who know how to unlock local demand for global brands.

eCommerce in Mexico has been booming in recent years. This growth is set to continue over the next 5 years, and with eCommerce penetration of only 53.2%, there remains plenty of room for global brands to enter the online market and establish themselves with a localized offering.

Smartphone ownership is increasing and a young, digitally savvy population is keen to engage with brands not normally available locally.

Economy

Mexico is home to 128.6 million people with a total GDP (PPP) of US$2.715 trillion and is ranked as the 11th richest country, according to the World Bank GDP total ranking. Mexico’s GDP per capita is currently US$10,405  and expected to increase in 2021.

Digital User Insights

There are currently 68.635 million eCommerce users in Mexico, with an additional 10.1 million users expected to be shopping online by 2023.

Dividing internet usage into age groups gives a better picture of the Mexican eCommerce market – 24% are 18-24 year-olds, 33% are 25-34 year-olds, and 26% of 35-44 year-olds, 14% are 45-54 year-olds, and 3% are between 55-64 years old.

What are the big shopping events in Mexico?

The main event is still Christmas, however, El Buen Fin takes slight precedence over Black Friday.

Internet and Device Usage

Mobile Commerce sales are set to increase this year, with the amount of revenue generated from purchases via mobile devices set to double that of 2019. Desktop purchases are also set to increase but at a slower rate.

Social Media

Mexico currently has 80.88 million social network users. Facebook leads the way, almost tripling the popularity of Instagram.