Amazon and Mercado Libre dominate e-commerce in Mexico
- Mexico has seen its e-commerce sector grow by 24.6% in 2023, reaching over $44 billion in sales.
- Key constraints include high rates of unbanked residents and limited internet access in rural areas.
- The e-commerce market is expected to continue its expansion, particularly in rural areas, despite overall slow economic growth.
Mexico has emerged as a significant player in the global e-commerce scene, becoming the second largest online sales market in Latin America, following Brazil. Data from the Mexican Association of Online Sales (AMVO) reveals that in 2023, e-commerce in Mexico grew by an impressive 24.6%, exceeding $44 billion in sales. This remarkable growth has been driven by the widespread adoption of mobile devices among consumers and an increase in demand for online services, which includes shopping, bill payments, and financial services. However, despite this rapid expansion, a number of constraints persist in the Mexican online marketplace. A considerable section of the population, nearly half of whom do not have bank accounts, faces hurdles in accessing online shopping. The lack of adequate home internet in rural regions further complicates matters, limiting the reach of e-commerce. Additionally, logistical challenges exist in delivering goods to remote communities, creating barriers to expansion in some areas. Furthermore, the future of e-commerce in Mexico is likely to see a shift as urban markets reach saturation. Growth is anticipated to pivot towards rural expansion, opening doors to a potentially large and untapped consumer base. Experts suggest that popular categories for online sales will include electronic gadgets, food products, and clothing, which will likely continue to dominate the market in the coming years. With a forecasted economic growth of only 1.2% for Mexico in 2025, the e-commerce sector appears resilient and poised for ongoing expansion. Both global corporations like Amazon, Uber Eats, and Mercado Libre and local retailers are actively pursuing opportunities in the digital arena, highlighting a trend toward the increasing acceptance and integration of e-commerce in everyday life. As the digital economy evolves, it exemplifies how consumer behavior is adapting within the framework of modern technology, ensuring that Mexico remains a key player in the global e-commerce landscape.