Mexico's E-commerce Market Has Great Potential. Mercado Libre Is At The Top Here!

Recently, according to the statistics of Euromonitor, an authoritative market research organization, Mercado Libre became a large e-commerce platform in Mexico in 2021.

In fact, in Latin America, the importance of the Mexican market to Mercado Libre is self-evident. In February 2022, Mercado Libre announced that it would invest $1.475 billion in the Mexican market.

Moreover, Mercado Libre will invest 34% more in Mexico in 2022 than in 2021. In the past five years, Mercado Libre has invested $2.195 billion in Mexico.

Moreover, according to the official data of Mercado Libre, its Mexican business had the highest net revenue in the fourth quarter of 2021, with sales increasing by 33%.

In 2021, the top five platforms with a market share of e-commerce in Mexico were Mercado Libre (15.4%), Amazon (13.2%), Walmart (9.6%), Liverpool (7.0%), and copper (6.8%).

01

In the Mexican e-commerce market, the top three are foreign enterprises. The top-ranked Mercado Libre, which accounted for 15.4% of the Mexican e-commerce market in 2021, is an e-commerce platform headquartered in Argentina. Amazon, which ranks second, and Walmart, which ranks third, are both e-commerce or retail enterprises headquartered in the United States.

Liverpool, which ranks fourth, and copper, which ranks fifth, are large retail enterprises headquartered in Mexico. In addition, Euromonitor consulting said: that these statistics do not include the transaction data of C2C and B2B.

Interestingly, we didn't see the shop in the top five on the list. You know, the shop is a large e-commerce platform in Southeast Asia. In 2022, the shop said it would focus on the Latin American market, and it has ranked first in a number of data in the Brazilian market.

02

As for the e-commerce market in Mexico, according to the data released by the Mexican E-Commerce Association ammo in February 2022: in 2021, the sales of e-commerce in Mexico increased by 27%, reaching 401.3 billion pesos (the US $20.1 billion).

In 2020, e-commerce sales in Mexico increased by 81% to 316 billion pesos ($15.8 billion). From this point of view, the growth rate of e-commerce sales in Mexico in 2021 is slower than that in 2020.

However, in 2021, Mexico's e-commerce sales increased by 27%, higher than the world average of 16.3%. Moreover, it is equal to India (27%), higher than Brazil (26.8%), Russia (26.1%), Argentina (26.0%) and France (17.5%).

Moreover, the data also show that in 2021, the proportion of e-commerce sales in Mexico to total retail sales was only 11.3%, while this figure was 9% in 2020. According to Evo estimates, by 2025, the proportion of e-commerce sales in Mexico will reach 24% of the total retail sales.

These data show that Mexico's e-commerce market ushered in a major outbreak in 2020. Although the growth rate slowed down in 2021, the future development potential is still huge.

03

After knowing the development level of Mexico's e-commerce market, let's take a look at its e-commerce market share in the whole Latin American market. According to the statistics of statistics, in 2021, Mexico accounted for 29.33% of the Latin American e-commerce market, ranking second, which is very close to Brazil (29.9%).

As of January 2022, Mexico has a total population of 130.9 million, including 96.87 million Internet users, with an Internet penetration rate of 74%.

Indeed, the extremely high Internet penetration rate has provided favorable conditions for the development of e-commerce in Mexico. However, there are also some problems in the Mexican market: more than 50% of the population does not have bank accounts; Some platforms do not support multiple payment methods; Slow delivery of packages in the last kilometer; Most people are used to cash on delivery.

Of course, the problems listed above are not the only ones, which will affect Mexicans' willingness to spend online. However, over time, these bad situations will gradually improve, the cost of user education will gradually reduce, and the Mexican e-commerce market will become more and more mature.

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