Market analysis of Mercado Libre Mexico site and details of opening of first distribution center
As an important part of Latin America’s cross-border e-commerce market, Mexico shows huge business potential. As the country’s largest e-commerce platform, Mercado Libre plays a pivotal role in this region. Below we will discuss the characteristics of the Mexican site from the aspects of market analysis and consumer behavior, and introduce Meikeduo’s newly opened first distribution center in Uman, southeastern Mexico.
Mexico site market analysis
The e-commerce market is not saturated and the opportunities are huge
Mexico occupies an important position in the Latin American e-commerce market and has the highest online retail sales. Especially in the fields of consumer electronics, clothing, toys, home furnishings, fitness equipment and beauty, the market potential is still huge. In addition, the epidemic has accelerated the growth of online sales of furniture and household products, further promoting the trend of e-commerce and intelligence.
Peak sales hours
The sales peak is mainly concentrated in the holiday season in December every year, the National Online Shopping Festival and Black Friday in mid-November, and the online retail discount season from the end of May to the beginning of June every year.
Complete transportation service network
With the continuous improvement of Amazon FBA and other services, the delivery timeliness in the Mexican market has been significantly improved, which has attracted more cross-border sellers to choose Mexico as the first stop to enter the Latin American market.
Consumer Analysis
Shopping style
Mexican consumers tend to like European and American, simple and retro-style products. For clothing and furniture products, designs with local Mexican elements are more likely to be popular.
Shopping hours
Consumer purchasing peaks usually occur in the middle and end of each month, as well as on the eve of holidays, while relatively few people shop online on weekends.
Changes in consumption habits
In recent years, Mexican consumers have increasingly tended to choose brands with high cost-effectiveness, and sales of household products have increased. At the same time, people pay more attention to healthy lifestyles and are willing to pay more for it.
Social media impact
Social platforms such as YouTube, TikTok, and Facebook have an important impact on Mexican consumers’ shopping decisions. They often follow hot topics and best-selling products through these channels.
First distribution center opened
In order to further improve user experience, Mercado Libre has set up its first distribution center in Uman, Yucatán State, southeastern Mexico. The center covers an area of 35,000 square meters and is able to store more than two million items and serve more than 3,000 sellers in the region. This move will not only significantly shorten the delivery time of goods – customers can receive the goods within 24 hours after placing the order, but also demonstrates Mercado Libre’s continued investment commitment to the Mexican market.
Investment growth
According to statistics, in 2022, Meikeduo has invested nearly US$1.5 billion in the Mexican market, an increase of 34%. In March this year, the company invested an additional US$1.6 billion, mainly for product development, technology upgrades and logistics system construction.
Distribution center facilities and staff
The newly established distribution center is equipped with advanced technology models to optimize route planning and achieve rapid delivery, and is expected to create approximately 800 direct employment opportunities.
To sum up, from the perspective of market size and consumer behavior, Mexico is an ideal destination for Mercado Libre cross-border sellers. With the launch of its first distribution center and the strategic layout behind it, Mercado Libre will continue to consolidate its leading position in the e-commerce industry in Mexico and even Latin America.