According to an eCommerce market analysis by eCommerceDB, Mexico is the 19th largest market for eCommerce with a total revenue of $9 billion in 2019. At the same time, it also contributed to the worldwide growth rate of 13% with an increase of 11% and it’s forecasted to generate $16.9 billion in eCommerce retail revenue in 2020. This is only expected to continue growing, especially following the COVID-19 outbreak.
With half of the population shopping online thanks to growing trust and confidence in eCommerce within the country, this strong forecast should have brands around the world drawing their attention to Mexico and learning the best practices for entering the online landscape in this market, particularly post-pandemic.
For this reason, Photoslurp put together this market research on the online buying practices of Mexican people. With the insights from our report, online brands from various industries and countries will have the information they need to not only enter the Mexican market but improve their eCommerce performances in this promising online space.
This data was collected in July 2020 in the midst of the COVID outbreak. Back in May 2020, Mexico began reopening some areas of the country but will likely experience further lockdowns throughout the year. This only fuels the need for online brands that wish to enter this market to gain a comprehensive understanding of how the eCommerce landscape is changing throughout the pandemic.
With this report, we offer a valuable piece of market research that presents a comprehensive snapshot of the actual eCommerce situation in Mexico following the COVID-19 quarantine.
Chapter 1: The current eCommerce market in Mexico
Mexico is high up on the list of Latin American countries that have grown their eCommerce presence, inspiring many international companies to look towards this fertile market. The COVID outbreak has also brought on a lot of welcome change for the eCommerce landscape of Mexico including a 33% increase of free deliveries and a cultural switch towards debit/credit card use (over the past year credit card use has increased by 53%).
However, it’s important to note that 30% of the population does not have a bank account, meaning that cash purchases remain a prominent need even for online shopping. Practical eCommerce claims that accepting cash is crucial for eCommerce businesses to succeed in Mexico, which can be carried out with the convenience-store method or payment on delivery.
In terms of product demand, RetailX found that Mexican consumers generally buy more services online than physical goods, however this appears to be changing thanks to COVID-19. Now, food supplies and health care are overtaking the purchase of services online, something that we also see within our data.
As the Mexican online retail sector has grown rapidly over the course of the COVID outbreak, this market has a lot of potential for brands looking to enter it. This is why we’ve taken the time to investigate the online buying habits of Mexican people.
In order to provide a comprehensive snapshot of this eCommerce market, we put together this report on the online buying behavior of Mexican people. It addresses the entirety of the Mexican eCommerce market by answering these 4 key questions:
1. What are the online buying habits of Mexican people?
This section is broken up into two parts. The first looks at what Mexican people were purchasing online before the pandemic, during the pandemic, and what they plan to continue purchasing online post pandemic.
Second, we look at how often Mexican people tend to purchase online and the amount that they spend. This includes a look at how this has been affected by the COVID outbreak.
2. What inspires Mexican people to shop online from specific brands?
Then, we look at what inspires the Mexican market to shop online from specific brands, which includes a look at the way that Mexican people interact on social media in relation to online purchases for a better idea of the relationships between them.
To further explore what eCommerce brands can do to stand out against competitors within the Mexican market, we look at brand values like price, sustainability, and ethical treatment of workers to see what inspires the people of Mexico.
3. What eCommerce services and features help or encourage Mexican consumers to buy online?
To help brands improve their eCommerce user experience, in this section we explore the services and features that lead to conversions within the Mexican market, especially during the COVID situation. From User Generated Content to customer service options, brands will leave with a better idea of the best ways to get customers to convert.
4. What post-purchase habits do Mexican consumers follow?
Finally, we look at how Mexican consumers react after purchasing a product to get a better idea of how to engage with customers within this market post-purchase particularly during the COVID-19 era.
By looking at consumer behavior based on these 4 key questions, we have a comprehensive idea of how the people of Mexico buy online in the wake of the COVID outbreak, including the types of products, the frequency, and what gets them interested in converting.
This research will greatly help brands around the world improve eCommerce performance in this region following the pandemic.