Amazon in Mexico: How to Sell on Amazon.mx

As the planet entered the new decade, we’ve seen a drastic shift in shopping habits worldwide. More and more people worldwide have access to the Internet, and thus, online shopping. Its popularity attracts more buyers and money to popular online marketplaces. As a result, it popularized Amazon as an effective alternative to buying offline.

The COVID-19 crisis scared almost every sector of the economy. Still, the online sphere received a tremendous boost. This trend was especially notable in Mexico. It takes the lead by growing the customer pool among Latin American states. Today we want to tell you the main facts about the Mexican online market and why you should pay attention to selling on Amazon in Mexico!

State of Online Commerce in Mexico

Let’s start by reviewing the popularity of online commerce in Mexico. According to studies, Mexico concentrates almost 30 percent of the region’s e-commerce market. It also is a #2 Latin American state by online income, making around 22 billion USD a year. 

A short overview of the Mexican online market shows us that:

• Most teens and adults with Internet access have a mobile phone.
• Almost 130 million people live in this Latin American country. Of them, ninety million use the Internet daily.
• Income has grown in all significant item categories.
• As studies show, more than sixty-five million Mexicans use the Internet for shopping. Most of them use credit cards or PayPal for payments.

It is also important to note the most popular product category in Mexico. This title goes to Electronics & Media. Mexicans adore buying consoles and games online, so this category is up-and-coming.

eCommerce Consumer Profile

Let’s review the study by the Mexican Association of Online Sales. Their experts used the most recent info about Mexican shopping habits and trends. With its help, we can create a portrait of a typical Mexican internet consumer:

• 90% of buyers are pleased after getting an item from the Internet. It means that they are more inclined to give higher scores.
• 80% of Internet users have bought an item or service online in the past 12 months.
• 8 out of 10 buyers say that the way the website looks impacts their buying decision. It means that the way your listing looks on the Amazon Mexico website is crucial.
• People tend to shop online because it’s a more comfortable alternative to offline shopping.

In reality, there is much more than that. Some more popular reasons for not buying offline in Mexico are: 

• to get unique proposals/sales;
• to get items that clients can’t buy in Mexican offline shops;
• to spend less time.

If you find an item with high demand and low supply in Mexico, you can benefit greatly! To get everything right, use product research tools to your advantage.

Amazon Mexico is Expanding

There are more than fifty million people in Mexico who use Amazon Mexico shopping. This marketplace is profitable, so the company pays much attention to its improvement. Current priorities are shortening the delivery time and improving shipment methods.

Now clients can expect their items to arrive to the Amazon warehouse in Mexico City in one day. Except for the capital, clients from more than two dozen cities enjoy one-day shipping to Mexico. Amazon also ensures that it can ship your item to any part of Mexico in two days.

Joining the marketplace “Mexico” has another great benefit. It instantly allows you to sell in Canada and the United States. Thanks to such a feature, you can sell in the most profitable markets of the continent at the same time. So please don’t ignore it and find out more about United Accounts in North America.

Why You Should Open Your Business in Mexico

The popularity and income of online retail in Mexico are growing. Also, the Mexican middle class is becoming larger and larger. It gives us hope that the scenario of eCom in Mexico appears to be even more beneficial.

More and more users realize the convenience of shopping on the Web. The pandemic and its challenges only fostered the implementation of modern online technologies. As a result, the online market in Mexico received a rapid boost with an influx of new items and clients.

The geographical location is another advantage of Mexico. It borders the biggest economy in the world and has a large, open market with ever-growing needs. This way, US retailers have a unique chance the development of their businesses.

What to Consider Before Selling on Amazon in Mexico?

One of the biggest things you’ll want to think about before selling your products on Mexico Amazon is your ability to handle customer service requests, returns, and replacements.

Many Amazon.mx sellers have reported a high volume of shipping issues — lost packages, shipping delays, etc.

These all require a decent infrastructure: customer service reps to field the requests, fulfillment employees to repack, replace, and re-ship products, and of course, the time and resources to do all this.

Here’s some additional information on what to consider when selling on Amazon Mexico: 

1. Shipping costs

When selling on Amazon Mexico, shipping costs will naturally rise, especially if you’re shipping from further reaches of the U.S. Amazon also recommends using FedEx, DHL, or UPS for shipping (not USPS/Correos de Mexico).

This will add costs as well.

2. Duties and fees 

There are also other logistical costs to consider, too — things like taxes, duties, and fees for shipping internationally. Make sure you fully estimate these for your products before moving forward.

There are also currency conversion fees to think about. Currently, Amazon charges a 3 percent on every disbursement it needs to convert (So $3 on every $100). 

3. Language barriers 

In order to build trust (not to mention communicate order details), you’ll want to speak to buyers in their native tongue.

Do you have Spanish-speaking team members who can help with this? If not, do you have the resources to find someone who can?

4. Returns

Handling returns on Amazon Mexico is tricky. First off, you need an in-country address in order to process returns.

If you don’t, you’ll have to pay for the entire return (shipping and all) yourself, or refund orders without returned products — both options that will eat into your bottom line. 

Using Amazon FBA in Mexico can help combat many of these issues. By utilizing Amazon’s own network of Mexico-based warehouses and shipping partners, you can cut down on shipping costs (and problems) and make processing returns easier. FBA, of course, comes with fees. These range from $52 to $67 Mexican Pesos per product, depending on weight.

Conclusion

Mexico is the heart of Latin America. Selling on Amazon Mx can boost both your popularity and fame. But to do that, you should improve your retailing skills. Follow our blog to find out something new! You’ll know everything about Amazon Prime, shipping costs on Amazon, launching successful marketing campaigns, and much more! Join SageMailer now and use it free of charge for 30 days!