17 Things to Know About Mexico eCommerce

Mexico eCommerce

As the southern neighbor of the U.S., Mexico eCommerce continues to increase its presence and is a target many eCommerce professionals are keeping an eye on as they look for expansion opportunities. So what do online retailers need to know about eCommerce in Mexico? Here are 17 different things…

 

    Demographics and Internet Usage

  1. Mexico has a population of 121 million people
  2. 65 million people (54% of the population) are internet users with Mexico having the eighth highest internet user total of any country in the world
  3. Only 14.3 million Mexicans have a fixed broadband service
  4.  

    Retail eCommerce

  5. Mexico had $4.4 billion in retail eCommerce sales in 2014 and sales are projected to reach $13.3 billion by 2019
  6. Retail eCommerce sales grew 32% from 2013 to 2014 with the growth rate projected to decrease to 20% between 2018 and 2019
  7. Online sales were only 1.2% of total retail sales in 2014 but 3% is a realistic projection for 2019
  8.  

    Mobile and Tablet Ownership and Usage

  9. Over 45 million people in Mexico (37% of the population) own a mobile phone with ownership projected to surpass 73 million by 2019
  10. Mobile phone ownership increased 22% from 2013 to 2014 but is only projected to increase by 6% from 2018 to 2019
  11. 18 million Mexicans were tablet users at the end of 2014 (approximately 15% of the population) with 33.5 million tablet users projected in 2019
  12. 30% of internet users last year owned a tablet, the highest percent of any country in Latin America (projected to be 39% in 2019)
  13.  

    Digital Buyers

  14. There are currently 14.3 million digital buyers in Mexico (12% of the population) with the number of buyers projected to increase substantially by 2019 (23.6 million)
  15. Mexico currently has the lowest percentage of digital buyers among major countries in Latin America, with just 22% of its internet users currently purchasing online
  16. The number of digital buyers increased 24% from 2013 to 2014, the largest percentage increase of any major country in Latin America
  17.  

    Additional Information

  18. 83% of smartphone owners in Mexico have Android devices while only 10% of owners have an iPhone
  19. Facebook is the dominant social network and has the second highest percentage of their digital population on the network of any major country in the world (over 70% of internet users have a Facebook presence)
  20. Display advertising is successful in Mexico, with average click-through rates (0.23%) being more than double the United States (0.09%)
  21. Payment issues and types (credit/debit card, PayPal, cash-on-delivery services such as Oxxo) are a concern for Mexican digital buyers with 51% of buyers stating they have abandoned a cart because their preferred payment method was not present.

 

Summary

In short, Mexico is a unique country from a digital retail perspective. Retail eCommerce sales are expected to triple by 2019 as internet access will continue to increase in the country. This growth will likely be due to the substantial increase in mobile device ownership in the coming years and the increase in consumer comfort of purchasing online. While Mexico currently trails behind other leading Latin America countries in its size and percentage of digital buyers, its internet users are active (preferring Facebook as their social network) and are not apprehensive to interacting with digital advertisements.

 

Sources: eMarketer, comScore, ITU, DoubleClick, UPS