It’s not a secret that Mexico has one of the most attractive economies in the LATAM region, with a high yearly growth, and potential to continue for years to come, specially regarding the development of E-Commerce in Mexico. The lack of confidence on the payments systems its been surpassed year after year, thanks to the increase of the population with access to the financial system and alternatives for those unbanked such as Oxxo, 7Eleven and many more chains that allow cash payments as part of their services.
The development of E-Commerce in Mexico
There is still much to be done on giving access to many sectors of the population to the financial system which remains a challenge for the country.
The Mexican government is working in several projects to help the population get access to the banking system, even though not an easy task, large banks are starting to work on ways to bring banking and making easier the access to the financial system, examples of this could be Hey Banco from Banregio, or Albo, amongst others.
It is undeniable that Covid has helped fast forward the digitalization of companies in Mexico.
El impulso al crecimiento de la economía digital se debe a la apuesta de muchos emprendedores, quienes han aprovechado la oportunidad que ofrece el país, impulsando los modelos B2C (Elektra, Walmart), B2B (Open Forum Amex MX PyMe) y el auge de los marketplaces como Mercado Libre.
“At FlowPagos, we believe that Mexico represents a great opportunity for our expansion and growth in Latin America. Despite the challenges that the Covid has created, it has also brought us some opportunities, and at Flow we have accepted them to support companies to sell their products online with a system they can trust, with the best conversion rates, the biggest payment options available, a transparent process to deposit you the funds from your sales, always within a secure system, that complies with the highest requirements when it comes to Fraud and Compliance.” Said Javier Huerta, Director of International Operations and Country Manager for FlowPagos Mexico.
What is Mexican’s consumer behavior?
According to the latest study by the AMVO (Mexican Association of Online Sales), the Mexican buyer continues to grow, especially in ages over 35 years old, generating a very rapid adaptability to new payment methods, both in devices and in type of products . When before the price was part of the top 5 for the final decision making in online shopping, today the practicality and usability have taken great relevance.
Top 5 reasons for Mexican’s consumer to buy online.
Many online shoppers have found the opportunity to save time and money in this market. These are the five reasons why Mexicans prefer to buy online.
- Receiving my purchases at home.
- Saving time.
- Comparing prices and practicality.
- Finding products that are not available elsewhere.
- Discovering products not available in Mexico (International).
The Mexican buyer is becoming more informed. Now they check more sources of information before making an online purchase. 7 out of 10 buyers feel safe making a purchase online, making the experience more and more positive and allowing referrals to new buyers.
However, the lack of security is still high, as 75% of off-line buyers (statistical data) consider that they may be the target of electronic fraud, 70% prefer not to use their bank details, 51% are afraid of being wrong When choosing their purchase, 32% do not know how to pay in cash and 24% do not know how to make a purchase online.
That is why one of the goals of FlowPagos is to strengthen the trust of new and experienced buyers, offering a secure payment platform.
Other points that highlight the Mexican consumer is their preference for mobile devices when purchasing a product.
Before making a purchase, Mexican buyers search their devices finding the following classification:
- 94% mobile device.
- 77% laptop.
- 51% personal computer.
- 39% tablet.
The Mexican is increasing their online habits to a weekly shopping frequency mainly driven by services, although the product vertical is also migrating to this frequency little by little.
Top 5 Verticals Mexican online purchases for last year.
- Food Delivery.
- Video game.
- Beauty and Personal Care.
Now with the Covid situation, the tourism vertical (mainly Hotels and Airlines) lost great relevance. The verticals of digital goods (Videogames, Streaming, Services) are becoming increasingly important.
The payment methods preferred by the Mexican buyer are credit and debit cards. The role of cash and digital cards have been gaining ground in recent times.
- Debit card 87%
- Cash on delivery 71%.
- Credit card 69%.
- Cash payment at convenience stores 62% (decreased).
- Bank Deposit / Check / Transfer (SPEI) 62%.
Online shopping delivery preferences:
The Mexican public prefers to receive their goods or services (the latter consumed immediately) at home, followed by delivery to the office or work, picking up at a mailbox or distribution center and very few choose to pick up at a physical store. Unfortunately, the pandemic has caused transport and logistics companies to be overwhelmed, so experience, in terms of time, is an area that companies dedicated to online sales are working hard to improve with their allies. However, 8 out of 10 buyers are satisfied with their shopping experiences.
What is the commitment of the Mexican buyer when buying online?
The Mexican buyer who has had an online purchase is relying more and more on their preferred online store, since they are now able to trust their data for their purchases and thus facilitate their processes for future interactions. And increase recurring purchases.
- 34% save personal data when shopping online.
- 23% save bank details for future purchases (one click).
- 33% follow their favorite brands.
- 25% give a brief review of their purchase process (moment of truth).
The continuous growth of the Mexican market as well as the fast development of E-Commerce in Mexico means that this is a great time for you to enter the market and position yourself. It is time to go beyond your limits. Process locally, sell globally.