With a population of over 132 million people, Mexico offers significant growth opportunities for e-commerce brands looking to expand internationally.
We also have a thriving e-commerce market, low value added tax, and government initiatives designed to support economic growth. Read on to find out why this is becoming increasingly impossible to ignore for online sellers as a desirable e-commerce destination.
Why Mexico is a great place for e-commerce
Mexico's e-commerce market is growing at a breakneck pace, driven by a large online community where nearly 80% of the population uses the internet on a regular basis. In fact, current projections are that revenues will soar to around $59 billion by 2028.
The Mexican market is competitive, partly due to low operating costs and a value-added tax of just 16%, but it welcomes foreign as well as domestic companies. In fact, we purchased it from a global company in Mexico in 2022.
And let's not forget Mexico's location, which offers companies close access to two continents: the more established markets of North America and exciting new opportunities in South America. Mexico also boasts access to major international shipping routes, with 32 ports between the Pacific and Atlantic coasts.
Where to start when setting up an e-commerce business in Mexico
A new market can be daunting, but having familiar faces from the marketplace you're already familiar with can help. And while your brand may be new to the country, a well-known market authority can help you get your foot in the door and establish relationships with new audiences. Therefore, as your business begins to make a name for itself, the marketplace can do its job of providing credibility and security to both you, the buyer and the seller.
Here are two of Mexico's largest markets to consider.
Mercado Libre
Mercado Libre has a strong brand presence across the Latin American market and is Mexico's most visited online marketplace. According to data from Similarweb, it attracted approximately 111.3 million visitors in January 2024 alone. And with our recently announced unique investment plan to further improve logistics across the country. Mexico's most visited market I have no intention of slowing down.
amazon mexico
In 2020, the e-commerce giant announced plans to invest US$100 million in logistics in Mexico. As part of our investment, we will be setting up fulfillment centers and delivery stations in major cities in Mexico, allowing small and medium-sized businesses like yours to ship goods faster and at a lower cost than before.
With an estimated 103.7 million monthly visitors, Amazon Mexico ranks second on the list of top e-commerce marketplaces in the country. So while alternative marketplaces like Mercado Libre may offer familiarity, they could potentially offer a larger audience.
How World Accounts can help your business
When doing business overseas, we understand that managing payments in a secure and convenient way is important. That's why WorldFirst allows you to open a Mexican Peso (MXN) account without the need for an overseas address, allowing your customers to quickly and securely pay for products and services in their local currency. I did.
Once you have created a world account, it will take a few seconds to add your MXN account and get your local bank details. Not only do you get competitive exchange rates, but you can also save on unnecessary exchange fees by keeping the money paid in Mexican Pesos and using it to pay your domestic suppliers . Alternatively, you can easily convert your MXN to another currency to settle international bills.
World Accounts connects you to over 100 global marketplaces, including Amazon Mexico and Mercado Libre, making it easy to collect payments from your buyers. And this doesn't just apply to MXN. With World Account you can open up to 11 local currency accounts for free including AUD, USD, CAD, GBP, CNH, EUR, HKD, JPY, NZD, SGD. Seamlessly make international payments to suppliers and partners from a single online platform.
Need to manage your payroll and make lump sum payments? World Accounts can do it too. Send up to 200 payments in one click by simply uploading recipient details. And thanks to easy integration with Xero, you'll always be on top of your accounts, making reconciliations a breeze.
World Accounts are an easy alternative to overseas business bank accounts, allowing you to make international payments hassle-free.
Open a free worldwide account today and start expanding your business to Mexico.
Disclaimer: The information contained is of a general nature only and is primarily our opinion. Before acting on any information, you should consider whether it is appropriate for you, taking into account your objectives, financial situation and needs. Information has been obtained from and is based on multiple sources believed by the author to be reliable, but cannot be guaranteed to be accurate and may be incomplete or summarized. All opinions, quotes, products/services mentioned, and references constitute the author's own judgment as of the date of the briefing and are subject to change without notice. WorldFirst will not be liable for any loss or damage caused by your reliance on such information.
