The Mexican eCommerce market is booming, offering an incredible opportunity for sellers looking to expand their business overseas. Over the last decade, Latin America’s middle class has doubled in size and eCommerce marketplaces have been popping up, many of them among the fastest-growing in the world. Mexico is Latin America’s second largest eCommerce marketplace and US goods make up almost half of the country’s total imports.
A Look at the Mexican Economy
There are over 120 million people living in Mexico today. While the country’s GDP per capita is still considered to be low, Mexico has a strong and growing middle class. People in Mexico have more money to spend today than they’ve ever had before. About half the country’s residents, around 60 million, are active internet users. While there is significant room for growth, just to put this number in perspective, the number of Mexican internet users is equal to the entire population of the UK or more than double that of Australia.
Mexican eCommerce – The Potential is Huge
In 2017, 75% of Mexico’s online population shopped online. Buying habits among Mexico’s online shoppers, made up primarily of their growing middle class, are quite similar to online shoppers in U.S. and Europe. Therefore, online retailers don’t need to adapt their products in order to successfully enter this growing market.
Have a look at some stats that show the numbers behind Mexico’s fast-growing eCommerce market:
- Revenue in the eCommerce market reached US$10,270m in 2018 and is projected to reach US$16,857m by 2022
- The largest product segment is Electronics & Media with a market volume of US$2,841m in 2018
- The current average revenue per user (ARPU) is currently at US$170.71
According to a recent report, online shopping in Mexico is on the rise:
What Are Online Shoppers in Mexico Buying?
Clothing and consumer electronics are currently the most popular product categories among Mexican online shoppers. In the clothing category, jewelry and accessories is the largest sub-category while computer equipment makes up a large bulk of the consumer electronics category. Not surprisingly, Mexico’s overall population is young as is its population of online shoppers. Mexican online shoppers usually live in larger, wealthier cities, around 54% are male and are employed full time. Cultural references are mainly from the US, as is their penchant for US online shopping marketplaces like Amazon, eBay and Walmart.
The following graph shows an increase in spend across various product categories:
Payoneer Enables eSellers to Thrive in the Mexican eCommerce Market
From October 2018, Payoneer will provide MXN receiving account to our users. This will allow Payoneer users to get paid in MXN through marketplaces like Amazon Mexico or other Mexican online marketplaces. Payoneer customers can withdraw their earnings directly to their local bank account in their local currency. As always, conversion fees are low and it’s easy and fast to access your earnings.
MXN receiving accounts are just one of many local virtual bank accounts that Payoneer offers. Other local receiving accounts include USD, EUR, GBP, JPY, CAD, AUD and CNH. Payoneer makes it easier for sellers to sell more, on more marketplaces, across more countries.
Read this blog post to learn how to connect an MXN receiving account to your Amazon store.
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