Although internet access in Mexico isn’t as widespread as in Europe or the rest of Latin America, the e-commerce market there is booming and boasts one of the highest growth rates worldwide. Many Mexicans look online for products that are unavailable domestically or sold internationally at a lower price. European products are viewed as high-quality, which positioins EU companies for success. Here, we’ll explore some unique aspects of Mexico’s e-commerce landscape.

Key Figures, Economy, Trade Partners, Currency, Time Zone

With a population of about 130 million, Mexico is Latin America’s second-largest country, the world’s largest Spanish-speaking nation, and nearly six times the size of Germany. Mexico is a federal state with 31 states and Mexico City as its capital. The northern border, shared with the United States, spans 3,326 km of Mexico’s 4,538 km total border.

The largest cities in Mexico are Mexico City, Guadalajara, Monterrey, Ecatepec de Morelos, Puebla, Nezahualcóyotl, Juárez, Tijuana, León, and Zapopan. Most of these cities are located inland, while coastal areas are sparsely populated. Mexico City is the largest city, where nearly 18% of the Mexican population lives. Mexico City is also the country’s economic powerhouse, hosting about one-third of Mexico’s service and trade sector and nearly two-thirds of its assets.

Mexico’s economy is the world’s 12th largest, with a GDP of approximately $1.79 trillion in 2023. Adjusted for purchasing power, the per capita GDP is around $25,601, comparable to other emerging markets like Brazil, China, and Argentina (for comparison, Germany’s GDP per capita is $69,338; Austria’s is $73,751). The country’s economy varies widely by region, with northern states near the U.S. border, such as Nuevo León and Sonora, being wealthier and more industrialized, while southern states like Chiapas, Guerrero, and Oaxaca are among Mexico’s poorest areas. Mexico ranks 77th globally on the United Nations Human Development Index (HDI), with a score of 0.781 (compared to Germany’s 0.950 and Austria’s 0.926).

The majority (57.6%) of Mexico’s GDP comes from the service sector, though manufacturing remains crucial (33.55%). Agriculture accounts for around 4% of the GDP. The U.S. is Mexico’s largest trade partner, receiving 79.6% of Mexico’s total exports. Other key export partners are Canada (3%), mainland China (1.54%), Germany (1.47%), and Taiwan (0.9%).

Mexico’s main import partners are the United States of America (42.8% of the Mexican total), mainland China (19.1%), Germany (3.5%), and Japan (3.4%).  About 12% of Mexico’s imports come from Europe. The top import categories are electrical machinery &  equipment (US$121.3 billion, 20.3% of total imports), machinery including computers (US$95.7 billion, 16%), and vehicles (US$61.3 billion, 10.2%).

The currency in Mexico is the Mexican Peso (MXN). While the U.S. dollar is frequently used as a stable currency, online transactions are generally conducted in pesos. The peso is divided into 100 centavos, and the current exchange rate has fluctuated between 17-27 pesos to the euro between 2019-2024.

Travelers from Europe should note the time difference: Mexico is eight hours behind Germany. When it’s 10:00 a.m. in Mexico City, it’s 6:00 p.m. in Berlin.

Internet Usage, Consumer Behavior, Sectors, Payment Methods

Around 83% of Mexicans now have internet access, and the user growth rate is about 6.6%. This is far below the European average. This shows that Mexico is still an emerging market. However, access is not low everywhere. Rather, internet access is distributed unevenly throughout the country, with low-income areas lagging behind the higher-income areas. Nonetheless, Mexico has over 107 million internet users as of January 2024, making it the second-largest market in Latin America.

In many parts of Mexico, e-commerce is thriving, with almost three-fourths of internet users making online purchases in the last three months. In 2023, Mexico was the fastest-growing country in terms of retail e-commerce sales, with an expected 25% increase predicted for 2024. Revenue is expected to grow from about US$38 billion in 2024 to around US$65 billion by 2029

Interestingly, many online purchases are made abroad, often due to better pricing and the availability of products not found in Mexico. European companies have a strong reputation in Latin America, so they are well-positioned to capitalize on this. The typical Mexican online shopper is between 25 and 44 years old and from the middle class, though more low-income consumers are also beginning to shop online.

The primary reasons shoppers give for shopping online are: the availability of home delivery (54%), time savings (44%), finding products that are unavailable in stores (37%), better promotions and discounts (36%), and being able to shop from anywhere (36%). This shows us that, overall, Mexican consumers are looking for convenience, product range, and good deals.

Reflecting the sector’s rapid evolution, nearly half of all e-commerce companies in Mexico were founded within the last three years. Yet major players dominate, especially Mercado Libre, the Argentine platform partnered with eBay, where businesses and individuals can list products for a fee. Amazon and Linio, part of Chile’s Falabella Group, are other significant competitors.

The most popular e-commerce categories in Mexico are household electronics (23.4%), followed by hobby & leisure (21.1%), fashion (21%), furniture & homewares (11.2%), DIY (8.9%), care products (8.5%), and grocery (6%).

The most common payment methods in Mexican e-commerce are credit and debit cards, and payment services like PayPal are also widespread. Mercado Libre offers its own payment service, MercadoPago. Bank transfers and cash-based payments are also popular. One cash-based method is OXXO; it allows shoppers to pay for online purchases in cash at their local convenience store using a code.

Many Mexican consumers prefer to pay in installments, even for small purchases. For as little as 100 pesos, shoppers can often opt for 12 monthly payments, with larger amounts allowing for more installments. Often, these are interest-free, although retailers typically increase the total price to compensate for the installments.

Language & Holidays

Mexico is the most populous Spanish-speaking country in the world, and English is not widely spoken outside of tourist areas. Consequently, a Spanish translation of your website is essential to reach Mexican customers. It’s important to consider regional differences between European and Latin American Spanish, which vary much like the English spoken in the US and the UK. While Mexicans can understand European Spanish, they find their own variant much more appealing. We highly recommend offering your website in Mexican Spanish.

When localizing your website, translating is only the first step. Product sizing, for instance, should be adjusted to local standards, and cultural differences should be taken into account. Notably, Mexican consumers tend to shop heavily during certain e-commerce holidays, such as El Buen Fin (similar to Black Friday in the U.S.) and Hot Sale (an online summer clearance event).

Other Mexican holidays, like Día de los Muertos or Cinco de Mayo, are widely celebrated but don’t typically impact e-commerce.

Customs, Trade Agreements, IMMEX Program

Mexico’s customs system is based on the Harmonized System (HS). The standard VAT rate is 16%, applied to imported goods, including e-commerce items valued between US$50 and US$1,000. Packages valued under $50 are exempt from customs duties.

Since 1997, Mexico and the European Union have been part of the “Global Agreement” for economic partnership, political coordination, and cooperation. As of July 1, 2000, there is a free trade zone for goods, and since March 1, 2011, for services. Goods imported from the EU to Mexico can benefit from preferential tariffs, provided they meet origin requirements and are transported directly from the EU.

Mexico’s IMMEX program, launched in 2006, was designed to boost exports by allowing businesses to import production-related machinery, equipment, and tools without paying taxes or duties, provided they are used for environmental protection, research, training, industrial safety, and similar needs.

Conclusion

Although internet access in Mexico is still expanding, e-commerce is thriving. The high annual growth rate is driven by an expanding population of internet users and increasing consumer interest. Middle- to upper-income shoppers aged 25-44, particularly in wealthier northern regions, often seek out quality products that are more expensive locally or otherwise unavailable. For European companies, with their reputation for quality, this demand represents a valuable opportunity. Although it isn’t perfect, the EU-Mexican trade agreement, or Global Agreement, simplifies trade between the EU and Mexico, making Mexico an appealing target market for European businesses that are looking to expand globally.



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autor_eurotext_100Author: Eurotext Editorial Team

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