With a population of more than 132 million, Mexico offers significant growth opportunities for e-commerce brands looking to expand overseas.

It’s also got a thriving e-commerce market, low VAT rates, and government initiatives designed to support economic growth. Read on to find out why it’s a desirable e-commerce destination that’s getting harder for online sellers to ignore.

 

Why Mexico is the e-commerce place to be

Driven by its large online community – almost 80% of the population regularly uses the internet – the e-commerce market in Mexico has been growing at a fierce rate. In fact, projections currently show that revenue will soar to about $59 billion by 2028.

Though competitive, in part due to low operational costs and VAT at just 16%, the Mexican market welcomes international players as much as domestic ones. In fact, in 2022, in Mexico purchased from global businesses.

And let’s not forget Mexico’s location which offers businesses close access to two continents – the more established markets in North America and exciting new opportunities in South America. Mexico also boasts access to key international shipping routes, with an incredible 32 ports split between its Pacific and Atlantic coasts.

 

Where to start when launching your e-commerce business in Mexico

New markets can be daunting, but the familiar face of a marketplace you are already comfortable using can help. And, while your brand might be new to the country, the authority of a well-known marketplace can help you get a foot in the door and establish a relationship with a fresh audience. So, as your business starts to make a name for itself, the marketplace can do the work of providing credibility and reassurance to both buyers and yourself as a seller.

Here are two of Mexico’s biggest marketplaces to consider:

Mercado Libre

Mercado Libre has a huge brand presence throughout the Latin American market and is Mexico’s most visited online marketplace. According to data from Similarweb, it attracted approximately 111.3 million visitors over January 2024 alone. And, with their own investment plans recently announced to further improve their logistics across the country, Mexico’s most visited marketplace isn’t planning on slowing down.

Amazon Mexico

In 2020, the e-commerce giant announced their plan to invest USD $100 million in logistics in Mexico. Part of the investment sees them setting up fulfilment centres and delivery stations in key Mexican cities to enable small businesses, like yours, to ship products faster and at lower costs than before.

With an estimated 103.7 million monthly visitors, Amazon Mexico ranks second in the country’s list of top e-commerce marketplaces. So, while it may provide familiarity, alternate marketplaces like Mercado Libre could offer a greater audience.