Analysis of Mexican e-commerce platforms: choices, challenges and opportunities
As one of the largest e-commerce markets in Latin America, Mexico is attracting the attention of more and more cross-border sellers. In this market, platforms such as Mercado Libre, Amazon Mexico, Linio, Coppel and Walmart all occupy important positions.
Overview of major e-commerce platforms
Mercado Libre Mexico Station
Mercado Libre is an e-commerce platform covering 18 Latin American countries and is headquartered in Argentina. As of June 2017, Mercado Libre had more than 80 million views on the Mexican site alone. Mercado Libre held a 7% market share in Mexico in 2017, according to Euromonitor International. The platform’s hot-selling categories mainly include mobile phones and accessories, other electronic products, fashion, home and gardening, sporting goods and auto accessories. In addition, Mercado Libre also provides multiple categories such as automobiles, technology, home appliances, beauty, personal care and groceries, with 127 million monthly visits.
Amazon Mexico
Amazon entered the Mexican market in 2015 and quickly became one of the most popular e-commerce platforms. The site focuses on consumer electronics and technology products, and also provides digital products such as Prime Video, Amazon Music, and e-books. In 2016, Amazon Mexico had more than 20,000 domestic and international sellers offering more than 50 million products to Mexican customers. Judging from the relevant transaction categories on the Amazon Mexico site, clothing accessories, sports and health products, 3C electronic products, home appliances, toys and entertainment, etc. are all hot-selling. According to data from Euromonitor International, in 2017, Amazon’s Mexico site revenue increased by 106% annually, reaching US$502 million. Monthly visits reach 63 million.
Linio
Linio began to enter the Latin American market in 2012. It is headquartered in Mexico and mainly serves more than 500 million consumers in Spanish-speaking Latin America. According to Linio investment manager Race, among all categories on the Linio platform, the 3C category has experienced significant growth, and products such as health and beauty have achieved a substantial growth of 10 times compared with the same period in 2016. Fashion products including clothing accessories, bags, watches and perfumes have achieved explosive growth of up to 12 times.
Coppel
Coppel is the fourth largest e-commerce platform in Mexico, with a long history and a large customer base. Coppel is a local department store chain founded in 1941. It owns physical stores and e-commerce websites and competes with platforms such as Amazon. Coppel offers products from global brands including electronics, home and furniture, fashion, automotive and sports. Monthly online visits are approximately 23 million.
Walmart Mexico Station
Walmart has opened physical stores in Mexico since 1993 and has gradually developed into a retail giant that operates both online and offline. Its popular online store allows consumers to order online and choose to pick up their goods in-store. The monthly visits are approximately 28 million.
Suggestions for choosing a Mexican e-commerce platform
Although there are many e-commerce platforms to choose from in Mexico, the actual range of choices for sellers is not wide because many platforms have set certain entry thresholds. In addition, these platforms generally face problems such as fierce competition and serious price wars. Therefore, they may not be the best choice for cross-border sellers to expand into the Mexican market. Compared with Mexican e-commerce platforms, the barriers to entry for cross-border e-commerce independent stations are usually lower, and there is no direct competition among sellers within the platform. As a result, pricing is freer and profits are more substantial. In addition, independent websites are also conducive to brand building and can help sellers better take root in overseas markets. Therefore, in fact, independent websites may be a better choice for cross-border sellers.
Conclusion
As an e-commerce market with huge potential, Mexico is attracting the attention of more and more cross-border sellers. Choosing the right e-commerce platform is one of the keys to successfully entering the Mexican market. By understanding the characteristics, challenges and opportunities faced by different platforms, sellers can develop more informed market expansion strategies to achieve business growth and development in the Mexican market. The booming development of the Mexican e-commerce market provides abundant business opportunities for cross-border sellers. By understanding and flexibly using these well-known e-commerce platforms, sellers can better meet the needs of Mexican consumers, expand their business, and gain market share. For sellers seeking cross-border expansion, the potential of the Mexican market cannot be ignored. It is a golden market full of opportunities.