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Executive summary
Mexico’s e-commerce sector has experienced consistent growth since 2015. According to the Mexican Online Sales Association (AMVO), in 2020 alone the sector experienced a growth rate of over 80% compared to 2019, making e-commerce account for roughly 9% of all retail sales in the same year.
Since the early 2000s, Mexico has been developing its e-commerce regulatory framework, with electronic commerce provisions contained in several codes as well as in domestic and international laws, including Chapter 19 of the Canada-United States-Mexico Agreement (CUSMA), which includes provisions governing digital trade and electronic transactions in the three countries. In addition, since June 2020, all digital platforms operating in Mexico (foreign and domestic) are required to charge a 16% value-added tax to all transactions being made. The so-called "digital tax" aims to establish fair play market conditions vis-à-vis brick-and-mortar companies and other domestic digital businesses.
The COVID-19 pandemic has forced Mexico’s retail sector to adapt to the realities of the digital economy and new consumption and shopping patterns. Supermarkets, alongside food delivery companies, were by far the players that benefitted the most from COVID-19 in Mexico, with growth rates in online sales ranging between 40% and 800%. This increase in sales was driven by:
- the influx of new e-customers
- increased purchase frequency
- higher average ticket values
E-commerce retail sales have grown 240% in the last five years, making the retail segment the fastest growing e-commerce category. Nonetheless, retailers still face significant challenges, including timely responses to market demand amid the COVID-19 pandemic and the ability to manage a sustainable e-commerce strategy that enables growth in the short and medium terms.
Given the interest of Canadian agri-food exporters in the Mexican market, this market study outlines the best practices to sell products through e-channels operating in Mexico. Some newer platforms offer different sales approaches, from small direct retail purchases to consignment models. These platforms include:
- Jüsto
- Central en Linea
- Click Abasto
- Mayoreo Total
In addition, COVID-19 has forced leading supermarkets in Mexico to modify processes to meet the needs of consumers, specifically in areas of:
- delivery
- product availability
- warrantees
- customer service
In the case of consumer products, Amazon and Mercado Libre are the leading marketplaces and both offer services ranging from logistics solutions to marketing tools to gain product exposure.
Department stores in Mexico are responding to the threat posed by e-tailing platforms by offering:
- enhanced omnichannel experiences
- financing options
- loyalty programs
- customized solutions
In this category, both Liverpool and El Palacio de Hierro are heavily investing in new e-commerce strategies. Mexico’s e-commerce sector offers opportunities for almost any product, ranging from:
- high-value niche gourmet products
- general consumer packaged goods (CPGs)
- grains
- protein products
Merchandise trade accounts for roughly 52% of the total e-commerce net added value, and following trends seen in other parts of the world, Mexico is experiencing a rapid rise in B2C transactions. It is expected that within the next two to three years, B2C will overtake B2B’s value stake, mainly due to factors such as:
- Expanded market penetration of pure e-commerce players and marketplaces such as Mercado Libre and Amazon
- Strong growth of e-commerce among mass merchant retailers (Soriana, Walmart, Chedraui, Liverpool and El Palacio de Hierro)
- Growing trend enrolling brick-and-mortar businesses into e-commerce, especially in segments such as groceries, apparel, cosmetics, gifts and furniture
- Efforts by large brands and manufacturers to enhance customer care
For a full copy of the market study, please contact mexico.commerce@international.gc.ca