Despite its reputation for being slow in ecommerce adoption, Mexico could soon be a gold mine for online retailers—but first, they have to address the current economic challenges. eMarketer’s Matteo Ceurvels spoke with five local experts about the factors driving ecommerce growth in Mexico and what the future holds. These interviews were conducted as part of our August report, “Latin America Ecommerce 2018: Digital Buyer Trends for Argentina, Brazil and Mexico.”
Mexico’s political dynamics and economic factors—such as the volatility of the peso—have not had any impact on ecommerce growth. In fact, ecommerce has actually improved market behavior since it has allowed buyers to get better prices in light of increasing competition. Sellers have also benefited from this since they’ve been able to eliminate additional logistical and operational costs—which, in turn, has helped them see healthier margins.
There have been a number of economic challenges as of late after the rise of President Trump—in particular, a growing level of uncertainty about the effect of the dollar. Many items that are ordered online and sent to Mexico are often imported from Asia or the US. Therefore, a fluctuating dollar makes prices at the local level fluctuate as well. Inflation and increasing prices have been another big challenge since they’re something we’re not accustomed to here in Mexico. We’ve always been used to inflation at around 3%, not at 7% like we saw last year.
Despite the uncertainty that existed a while ago in light of increased gas prices and the future of NAFTA, there has been no evidence that ecommerce’s double-digit growth has slowed down at all. In fact, I think it’ll continue to experience strong growth from here on out.