Strategic Insights into Mexico’s E-Commerce Market

With 186% growth since 2022 and powerful growth forecast in the coming years, online shopping in Mexico is booming—and here is what you need to know about it

Andreas Farge

Director – E-Commerce And Payment Methods Specialist

Recently, BBVA forecast that Mexico’s GDP will grow by 2.4% in 2023, up from the previously forecast 1.4%. While many factors are at play, two significant ones could be favorable currency conditions and the growth of nearshoring.

But even in previous years in which general economic growth was not as robust, e-commerce in Mexico still posted strong expansion, as per recent numbers published by Asociación Mexicana de Venta Online (Mexican Association of Online Sales, or AMVO):

• In 2022 retail ecommerce in Mexico grew by 23% to reach a total volume of MX$528 billion (US$30.9 billion)
• Retail e-commerce represented 13.4% of the total retail market in Mexico in 2022, compared to 12.1% in 2021
• In 2022, growth for ecommerce merchants with no physical stores in Mexico (called Pure Players in AMVO’s Estudio de Venta Online 2023) was 24%, vs. 22% for “brick and click,” merchants that sell online and via physical stores
• Mexico’s ecommerce market grew by 186.9% between 2018 (when it had a volume of MX$184 billion) and 2022 (when it had a volume of MX$528 billion)

Below we highlight some key data from PCMI’s 2023 E-Commerce Data Library and other sources in order to offer financial services, marketing and ecommerce professionals an understanding of Mexico’s e-commerce market in 2023.

2023 Growth Forecast for E-Commerce in Mexico

Driven by our proprietary methodology (which includes transactional data to maximize accuracy), PCMI analysts project that e-commerce in Mexico will grow by 34% in 2023, according to PCMI projections.

PCMI further forecasts that Mexico’s e-commerce market will grow with a CAGR of 18% between 2023 and 2026 to reach a total volume of US$176.8 billion.

While this overall picture is important, focusing on the consumer behavior delivers a deeper understanding of the market drivers.

How They Buy

According to PCMI’s E-commerce Data Library, the primary payment methods that will be used by e-commerce shoppers in Mexico in 2023 are:

• Internationally-enabled credit card: 38%
• Debit card: 25%
• Cash vouchers: 10%
• Other: 9%
• Digital wallet: 8%
• Domestic-only credit card: 3%
• Bank transfers: 3%
• Buy Now Pay Later: 3%
  
  

AMVO’s data regarding payment methods differs from PCMI’s, as does its methodology, which employs a shopper survey:

• Debit card: 51%
• Credit card: 43%
• Department store card: 24%
• Bank transfer: 20%
• Cash on delivery: 18%
• Gift card or gift wallet: 18%
• Reward points/cashbacks/bonuses: 16%
• Card (upon delivery of product): 15%
• Cash payment in retail chain (e.g. 7Pay, OxxoPay): 14%
• Account balance in an e-wallet: 11%
• Buy Now Pay Later: 10%

Note: AMVO divided the responses to the question about payment methods by several categories:

• I use it for purchases in both brick-and-mortar stores and online stores
• I use it for purchases in online stores
• I use it for purchases in brick-and-mortar stores
• I don’t use it

The numbers above are for payment methods used by shoppers in BOTH online stores and brick-and-mortar stores. We chose to feature this option because in Mexico, many brick-and-mortar retailers have a powerful online presence.

Another key aspect of the purchase process is the device used. According to PCMI:

• 21% of Mexican e-commerce shoppers make e-commerce purchases using a desktop
• 79% of Mexican e-commerce shoppers make e-commerce purchases using a mobile device

Historical data from PCMI (included with the purchase of to PCMI’s E-commerce Data Library for one country or multiple countries) shows that the percentages were significantly different in 2018, with 56% of purchases being made with a desktop and 44% with a mobile device.

These figures are similar to those recently reported by Capterra, which indicate that 79% of Mexicans make e-commerce purchases using a cell phone, 1% use tablets and 19% use a desktop.

What They Buy

According to AMVO, the top products purchased via e-commerce in Mexico in 2022 were:

1. Home-delivered food
2. Clothes
3. Beauty and personal care products
4. Toys
5. Electronics
6. Books, magazines, music, artwork
7. Home cleaning products
8. Sporting goods and sportswear
9. Cell phones and accessories
10.  Appliances

What They Do

AMVO’s survey data is helpful to understand e-commerce consumer behavior/preferences in Mexico, such as:

• 33% of Mexico’s ecommerce shoppers say they engage in webrooming (researching products online but buying them offline) “always or most of the time”
• 30% of Mexico’s ecommerce shoppers research products online, review products in a physical store and then purchase them online “always or most of the time”
• 25% of Mexico’s ecommerce shoppers search for prices online and only shop online “always or most of the time”
• 21% of Mexico’s ecommerce shoppers go to the physical store to review the product but then buy it online “always or most of the time”
• 58% of Mexican e-commerce shoppers say that receiving a product at home is their top reason for buying online, followed by saving time (49%), the ability to purchase more from wherever they are (42%), finding products that are not available in physical stores (41%) and finding more promotions and discounts than in physical stores (36%)
• 76% of Mexican digital buyers surveyed by AMVO said they had purchased on cross-border ecommerce sites in 2022
• 88% of Mexican digital buyers surveyed by AMVO said they were satisfied with their ecommerce shopping
• Top incentives that will motivate Mexican e-shoppers to purchase more in the next year include free delivery (70%), product discounts (61%), interest-free months (52%), discounts on future purchases (44%), and earning points for loyalty programs (38%), among others
• 58% of Mexican e-shoppers are interested in ecommerce that offers eco-friendly packaging

Go Further

While the data shared here can be helpful, both payments companies and ecommerce companies may benefit from a deeper dive into Mexico’s e-commerce data, which they can obtain by acquiring the PCMI E-commerce Data Library for Latin America.

The Library covers not only Mexico but also 14 other countries in Latin America, featuring e-commerce market data such as:

• Historical volume of Mexico’s e-commerce market for 2022, 2021 and further back
• Projections of Mexico’s e-commerce market volume for 2023-2026
• Breakdowns by merchant vertical for e-commerce in Mexico: retail, travel, ride-hailing, digital goods and services like streaming
• Data on both cross-border and domestic e-commerce purchases in Mexico for 2022 and projections for 2023 and beyond
• Breakdowns and projections of payment methods used in Mexico e-commerce (international/domestic credit cards, Buy Now Pay Later, digital wallets, Pix and others

And much more.

But other key advantages make the PCMI E-commerce Data Library for Latin America a uniquely powerful tool for companies that seek a fuller understanding of e-commerce in the region:

1. It’s customizable to client needs: you can obtain additional data you need for your company’s specific business concerns, beyond what the Library offers
2. It’s budget-friendly: while detailed reports are available for 15 Latin American countries, you can just buy data on just 1 or save money by purchasing a country bundle
3. It includes personalized guidance: every purchase of the Library entitles you to a free 1-hour consultation about the data with one of PCMI’s industry experts
4. It offers unlimited sharing: there is no single-user license with the PCMI E-commerce Data Library for Latin America, so you can share it freely with your organization

Next Steps

Contact us to find out more about what the Library offers, how we can customize it to your needs and how you can purchase it.