Mexico is home to over 130 million people and the marketplace industry is booming, offering online marketplaces an incredible opportunity to expand their business in the country with the second-largest population in Latin America. Although Brazil has a larger population, according to the eCommerce Foundation’s September 2018 Latin America eCommerce Report, Mexico was the largest e-commerce market in Latin America.
Here are some stats that detail the rapid growth of Mexico’s e-commerce market:
- The revenue of Mexico’s e-commerce market is projected to be US$9.441b in 2019.
- Revenue is expected to show an annual growth rate (CAGR 2019-2023) of 7.9%, resulting in a market volume of US$12.778b by 2023.
- User penetration, otherwise known as the number of users expanding into a market, is 47.2% in 2019 and is expected to hit 52.7% by 2023.
Case Study: Amazon in Mexico
According to an article by Currency Shop, Amazon Marketplace is one of the largest e-commerce retailers globally. In 2017, a report by Reuters named Amazon as Mexico’s top online retailer, helping grow the country’s e-commerce market by a third.
“Mexico’s digital economy has great potential. We expect it to keep growing in the future,” said Brian Huseman, Amazon’s Vice President for public policy, at a recent event in Mexico City promoting efforts to get more Mexican companies on its platform. (Exclusive: Amazon Zooms in on Central Mexico for Large New Warehouse)
According to an article published by Yahoo Finance, Mexico’s online shopping sales are projected to more than double by 2022, reaching $14 billion.
Mexico’s E-commerce Industry is Expanding. Why Aren’t Your Payout Methods Expanding Too?
If your marketplace business has sellers in Mexico or is looking to expand there, there are numerous factors you must consider including working with an indirect or direct payouts provider. Why should your business settle for only providing an indirect payouts method, like an e-wallet or bank wire? Paying out your marketplace sellers can be a hassle and often leads to unnecessary frustrations. With Transpay’s Local Bank Transfer solution, built on a network of bank partners, these frustrations can be eliminated.
Transpay’s network was originally built in a quest to create the most direct route for consumers to send money, at lower costs and quicker speeds than any other network. In 2014, Transpay expanded the network even further by partnering with new bank partners in Mexico. This made it possible for businesses to send Local Bank Transfers direct into the recipient's bank account in Mexican pesos.
According to Transpay's CEO, Samish Kumar, the company continues to create industry-leading payouts options for companies operating in global markets.
“Our strong commitment to technological innovation helps deliver an unparalleled combination of value, convenience, and service for our clients sending to Mexico from the U.S. and around the world," says Kumar.
1. Worldometers, “Mexico Population (LIVE),” accessed February 28, 2019, http://www.worldometers.info/world-population/mexico-population/