As a country with a continuously improving economic level and an increasingly open market, Mexico has attracted more and more e-commerce platforms to turn their attention to this market with huge potential. Among them, Mexico’s overseas warehouse market has gradually risen and has become the focus of e-commerce sellers. At present, Mexico mainly has two giants, Amazon and Meikeduo, competing fiercely in the field of overseas warehouses.
Amazon and Meikeduo are two giants.
Amazon currently has 12 warehouses in Mexico, of which 2 are external receiving warehouses and 10 are transit warehouses, including 5 logistics centers, which are responsible for the distribution of goods throughout Mexico. Meikeduo currently has four warehouses: ML1, ML2, ML3, and ML4, of which ML4 warehouse has not yet been fully used, and another 100,000 square meters of warehouses are under construction. Based on the development prospects of the Mexican market, Meikeduo has developed from two warehouses to four warehouses since 2021, which shows how much it values the Mexican market.
The pain points currently encountered by sellers in the platform’s overseas warehouses.
However, there are some problems with the overseas warehouses of Mexican e-commerce platforms, which have caused certain troubles for sellers:
Difficulty in warehousing and slow warehousing: Before the goods are sent to the platform warehouse, it is necessary to make an appointment with the platform for warehousing, but the appointment schedule is often long, especially the current warehousing appointment of Meikeduo has been scheduled until August. Even if the goods are successfully delivered to the platform warehouse, the warehouse’s shelf efficiency is slow.
Trouble with warehouse restrictions: The platform has a stricter warehousing restriction policy, and the warehousing restrictions of Mexican e-commerce platforms tend to be stricter. Amazon’s warehouse restrictions have become the norm, and Meikeduo has gradually tightened its policies and gradually strengthened the restrictions on the number of sellers’ goods shipped, resulting in sellers being subject to greater restrictions on product stocking and link promotion, and the replenishment cycle is also longer.
Slow turnover: When the platform warehouse is seriously overwhelmed, Chinese sellers cannot replenish the platform warehouse normally, and the recovery cycle of the platform warehouse often takes 1-2 months. If sellers cannot replenish goods in time during the peak season promotion, they will suffer significant losses.
Difficulty in warehouse transfer: The platform’s overseas warehouses cannot effectively meet the delivery of orders from different platforms, which requires sellers to prepare goods in the overseas warehouses of different platforms, which brings huge financial and stocking pressure to sellers.
Frequent policy changes: The policies of major platforms are highly volatile, and the interval from introduction to implementation is very short. Sellers are not given enough time to respond and prepare, which also brings great troubles to sellers.
Although the Mexican e-commerce market has huge potential to be tapped, there are also many problems in the overseas warehouse market. Sellers need to conduct sufficient market research and preparation before entering the Mexican market, and pay close attention to changes in platform policies in order to respond in a timely manner. I hope this article will be inspiring to sellers who plan to enter the Mexican e-commerce market. I wish you all greater success in the Mexican market!