The Mexico e-commerce market is your next growth opportunity
With a huge established audience, low tax rates and familiar marketplaces, Mexico is a lucrative opportunity for businesses looking to expand.
With a population of more than 132 million, Mexico offers significant growth opportunities for e-commerce brands looking to expand overseas.
It’s also got a thriving e-commerce market, low VAT rates, and government initiatives designed to support economic growth. Read on to find out why it’s a desirable e-commerce destination that’s getting harder for online sellers to ignore.
Why Mexico is the e-commerce place to be
Driven by its large online community – almost 80% of the population regularly uses the internet – the e-commerce market in Mexico has been growing at a fierce rate. Projections currently show growth of almost 14% by 2027, with revenue for 2023 predicted to reach USD $42 billion.
Though competitive, in part due to low operational costs and VAT at just 16%, the Mexican market welcomes international players as much as domestic ones. In fact, in 2022, 80% of online shoppers in Mexico purchased from global businesses.
And let’s not forget Mexico’s location which offers businesses close access to two continents – the more established markets in North America and exciting new opportunities in South America. Mexico also boasts access to key international shipping routes, with an incredible 32 ports split between its Pacific and Atlantic coasts.
Where to start when launching your e-commerce business in Mexico
New markets can be daunting, but the familiar face of a marketplace you are already comfortable using can help. And, while your brand might be new to the country, the authority of a well-known marketplace can help you get a foot in the door and establish a relationship with a fresh audience. So, as your business starts to make a name for itself, the marketplace can do the work of providing credibility and reassurance to both buyers and yourself as a seller.
Here are two of Mexico’s biggest marketplaces to consider:
Amazon Mexico
In 2020, the e-commerce giant announced their plan to invest USD $100 million in logistics in Mexico. Part of the investment sees them setting up fulfilment centres and delivery stations in key Mexican cities to enable small businesses, like yours, to ship products faster and at lower costs than before.
With an estimated 63 million monthly visitors, Amazon Mexico ranks second in the country’s list of top e-commerce marketplaces. So, while it may provide familiarity, alternate marketplaces could offer a greater audience.
Mercado Libre
With a huge brand presence throughout the Latin American market, Mercado Libre attracts more than double what Amazon does, with almost 130 million monthly visitors across Mexico. And, with their own investment plans recently announced to further improve their logistics across the country, Mexico’s most visited marketplace isn’t planning on slowing down.
- Open 10+ local currency accounts with local account details
- Direct CNH payments to 1688.com
- Pay suppliers, partners and staff in 40+ currencies and 130+ destinations
- Collect secure payments from 100+ marketplaces and payment gateways, including Amazon, AliExpress, Paypal and Shopify
- Lock in currency conversion rates for up to 24 months
How the World Account can help your business
We understand that managing payments in a safe and convenient way is key when taking your business overseas. Which is why, with WorldFirst, you can now open a Mexican Pesos (MXN) account with no overseas address needed, so customers can quickly and safely pay for products and services in their local currency.
Once you’ve created a World Account, adding a MXN account and getting local bank details takes seconds. Not only can you get better exchange rates than traditional banks are able to offer, you can also save on unnecessary exchange fees by keeping the money paid to you in MXN and using that to pay your suppliers in the country. You can also easily convert your MXN into another currency to settle your international invoices.
The World Account connects to over 100 global marketplaces, including Amazon Mexico and Mercado Libre, so you can easily collect payments from your buyers. And that doesn’t just apply to MXN because, with a World Account, you can open up to 11 local currency accounts for free including GBP, USD, CAD, AUD, CNH, EUR, HKD, JPY, NZD and SGD. Making your international payments to suppliers and partners from a single online platform seamless.
Need to manage payroll and make mass payments? The World Account can do that too. Simply upload the payee details and send up to 200 payments in a click. And, thanks to easy Xero integration, you can keep on top of accounting so reconciliation is a breeze.
The World Account is an easy alternative to a business bank account abroad and makes international payments hassle-free.
Open a World Account for free today and start expanding your business to Mexico.
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