1. Imperfect e-commerce development environment
Looking at the history of e-commerce development in various countries, the more prosperous the e-commerce market is, the development of logistics, online shopping fund security network, mobile devices, Internet development, etc. The aspect develops faster. A series of supporting measures are driven by the development of e-commerce, and when improved, they can promote the faster development of e-commerce, so this is a mutually reinforcing process. Although the Mexican e-commerce market has huge potential, it is still in its infancy and needs to improve the “surrounding environment” for further development. Poor traffic conditions, imperfect wireless network conditions, financial fraud, etc. all hinder the development of e-commerce in Mexico. In 2019, online shopping accounted for just 4% of annual retail sales in Mexico. At the same time, in terms of payment methods, according to Euromonitor International data, more than 90% of people in Mexico prefer to use cash transactions, with low acceptance of bank cards and credit cards. An important reason why MercadoLibre can occupy a leading position in the Mexican e-commerce market is that it allows consumers to pay for e-commerce shopping orders with cash at Oxxo convenience stores.
At present, the Mexican government has begun long-term modernization projects, including the construction of highways, international airports, railways and ports; Amazon, Walmart and other companies are also sparing no effort to promote cash payment and other businesses. In the future, as infrastructure continues to improve, Mexico will usher in a new round of competition and growth in the e-commerce market.
2. Strict customs clearance policy
Although Mexico is one of the world’s most open economies with twelve free trade agreements, China, as its main source of goods, still needs Pay an average tariff of 2% to 5%, of which the tariff on cotton fabrics is as high as 24%, and the tariff on footwear is as high as 26%. Mexican Customs has strict regulations on import clearance, inspection, taxation and certification. In addition, Mexico also has a value-added tax of 10% (border cities within 20 kilometers of the US-Mexico border) to 15% (other cities) and a 1.2% customs clearance rate.