Mexico is the second largest economy in Latin America, with an e-commerce sector poised for explosive growth. Combining North American influences with a distinct Latin American culture, the Mexican e-commerce market stands out because it’s familiar in some ways to English-speaking sellers but offers the advantages of Latin American commerce.

To take full advantage, it’s essential to understand the local shopping terrain. In this article, we’ll cover the latest consumer trends in Mexican shopping that you should consider as an online retailer.

Trends in Mexican shopping

Mobile is where it’s at in Mexico. The adoption rate for smartphones is soaring and the increasingly digitally-savvy younger generations are driving online sales – in fact, 83% of e-commerce consumers are under 44 years old. At the same time, Mexicans are more indifferent to the in-store shopping experience compared to the global average. Of those surveyed, only 12.6% said they missed the shopping experience when purchasing online, compared to the global average of 17.7%.

This makes e-commerce a great place to start if you’re looking to expand into Latin America, specifically Mexico. However, your online shopfront and digital experience need to be optimised for mobile, as three quarters of purchases are made on smartphones, compared to 36% and 29% on laptops and tablets respectively.

Mexicans are also among some of the most brand-loyal in the world; many of them have a desire to create a relationship with a brand. This means that if you can personalise their interactions with your brand and earn their trust, you’ll go a long way in establishing a foothold in the market.

Finally, thanks to rising income levels and a growing middle class, they also have more disposable income for purchases. By 2050, economists forecast that Mexico’s economy will grow to be the fifth-largest in the world.

Setting up as a seller

To start selling in Mexico, there are some local nuances to be aware of:

Payment landscape

One of the first things you’ll notice about the Mexican market is its mixed payment landscape. Credit and debit cards are increasingly popular, but alternative payment methods such as OXXO cash payments are widely used. In fact, nearly 20% of online orders are made via OXXO. Essentially, when you enable OXXO payments in your online store, it appears as a payment option at checkout. Customers who choose this will be sent a transaction voucher that they can pay in-person at any OXXO convenience store.

A high percentage of Mexicans still prefer cash transactions, and systems like OXXO allow for this. To capture this audience, consider adding it as a payment option on your e-commerce site.

Logistics infrastructure

Mexico offers a well-connected logistics network, as it’s geographically close to the US and has access to both Atlantic and Pacific ports. This means relatively fast shipping times, which can be a big win for customer satisfaction. However, be prepared for challenges in last-mile delivery due to local conditions such as traffic. Partnering with local courier services may help with reliable delivery times.

Culture and language

While Spanish is the primary language in Mexico, just translating your website won’t be enough. Mexican consumers appreciate a more personalised touch, so localised marketing strategies could be far more effective. Think customer service and marketing campaigns that resonate with local sentiments and cultural nuances.

Red tape and taxes

Taxation and regulations are daunting aspects of entering a new market. Mexico has its own set of rules when it comes to value-added tax (IVA), income tax (ISR), and special tax on products and services (IEPS). Even though these structures have been simplified over the years, you’ll still need a solid understanding to navigate them effectively.

In terms of the regulatory environment, though, the government has taken leaps in streamlining digital transactions and reducing red tape, making it a business-friendly environment. For example, Mexico was one of the first Latin American countries to implement a mandatory e-invoicing system, also known as CFDI (Comprobante Fiscal Digital por Internet). Customs procedures have also been simplified, which is great news for e-commerce businesses importing or exporting goods.