What is the status of e-commerce in Mexico?

by Advance Real Estate 21 de February, 2023 649 Views

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Over the past few years, e-commerce in Mexico has shown a fast-rising rate, bringing changes to many industries. The growth was, in part, fueled by the health crisis and rapid adoption of new technologies.

The Mexican e-commerce landscape

E-commerce in Mexico registered 27% growth compared to 2020 figures and, according to a report by Asociación Mexicana de Venta Online¹ (AMVO), reached a value of 401 billion pesos in 2021.

This makes Mexico one of the most promising markets, placing it in the top five fastest-growing countries for e-commerce retail.

These figures provide a general overview of how this market is expanding. However, more specific factors that better illustrate the Mexican consumer’s behavior are worth noting.

How e-commerce consumers behave

In recent years, acquiring products and services via digital means has evolved and grown, playing an essential role for companies in all major industries.

1. More customers are buying online

The e-commerce presence in Mexico is strong, ranking as the second-largest online market in Latin America with, as Statista reveals², an estimated value of over 38 billion dollars. The same platform projects more than 75 million digital shoppers³ in this country by 2025.

2. They like exclusive promotions and products

In AMVO’s Study on Online Retailing in Mexico 2022¹, 43% of Mexicans opt for online shopping because they find products that are not in physical stores, and 39% say they find more sales and discounts this way.

3. Higher demands on appearance and delivery times

Nowadays, customers demand faster delivery time and better package conditions. An Oracle survey⁴ estimated that more than 80% of consumers might cancel their purchases if delayed.

Logistics is paramount when discussing e-commerce in Mexico

At this stage in the buying process, problems in the supply chain often compound, and it greatly affects the customer’s experience.

Fulfillment, a process that consists of receiving new orders, managing warehousing, packing, packaging, and shipping, is crucial to avoid late deliveries and cancellations.

If service is lacking in this step, customers feel dissatisfied while, simultaneously, the company risks damaging its reputation and future sales.

This is when an industrial park’s advantages play a key role: a strategically located space can optimize fulfillment and e-commerce processes in Mexico.

Why locate in an industrial park?

An industrial zone offers benefits for a company including the following:

Close proximity to urban areas. The transport journey is short, given the proximity to urban areas, highways, and ports.
Suitable infrastructure. Industrial complex facilities have every type of service (energy, water, voice and data, drainage and sewage systems, hydraulic networks), roads, accesses, truck loading areas, yards, and more. Everything is managed professionally.
Security on site. Industrial facilities have 24/7 surveillance and controlled access. They are also surrounded by fences and have closed CCTV systems.
Centralized operation. When located in an industrial zone, there is plenty of space to store or maintain logistic operations close to each other, making processes more efficient and saving time and resources.

If you are on the quest to improve your company’s growth in e-commerce, our work at Advance Real Estate is focused on leasing and managing world-class industrial park spaces. All of them are equipped to meet your business operations and fulfill them optimally.

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About us

Advance Real Estate

Advance is a leading company in the acquisition, leasing and operation of industrial and logistics assets, with presence in 12 cities within Mexico and a portfolio of 11.5 million sf of industrial space.

informes@advance-realestate.com

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