Internet Retailing in Mexico: New research report available at Fast Market Research

From: Fast Market Research, Inc.
Published: Mon Mar 28 2016

After several months of selling only e-books and e-readers, in mid-2015 Amazon launched a full e-commerce site in Mexico, offering a wide range of different products, including electronics, homewares and beauty and personal care. Its entrance is significant given the strength of the company in other geographies, meaning Amazon has the expertise which should help ensure its success in Mexico. The company’s site lists a variety of products and categories sold directly by Amazon as well as products from third party merchants. An enormous part of Amazon’s reputation is its ability to innovate when it comes to delivery. As part of this strategy, Amazon signed an agreement with FEMSA Comercio to pilot a programme in which several of the latter’s OXXO convenience stores serve as collection points. With considerably less publicity, global internet retailer Alibaba launched AliExpress in Mexico, also in mid-2015.

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Competitive Landscape

Third party merchants, through MercadoLibre, led internet retailing in 2015. MercadoLibre has become a popular marketplace where consumers feel safe buying through sellers which are reviewed and evaluated by other customers. Another strength of MercadoLibre is that payment can be made through secure methods such as MercadoPago, where the money is held by MercadoLibre until the shopper confirms that he/she has received the product. For third party merchants, selling via MercadoLibre is attractive given that the site offers several types of service to sellers, ranging from free to premium plans that carry a fee but which ensure that offered products enjoy preferential treatment in search results.

Industry Prospects

Internet retailing is expected to post a value CAGR of 14% at constant 2015 prices over the forecast period to exceed sales of Mx$121 billion in 2020. According to Euromonitor International, the percentage of the population using the internet in Mexico is projected to rise from 46% in 2015 to 54% in 2020, a trend which will help support the growth of internet retailing. Mobile internet access will also be an important factor as smartphones have become increasingly important devices for consumers. The number of mobile internet subscriptions in Mexico is projected to increase sharply over the next five years, from 53 million in 2015 to 81 million in 2020. The entrance of new players, products and delivery platforms will also support the growth of internet retailing.

Report Overview

Discover the latest market trends and uncover sources of future market growth for the Internet Retailing industry in Mexico with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

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