• Services
    • GROWTH SOLUTIONS
      • Consumer Insights
      • Investment Research
      • Market Research
      • Opportunity Benchmarking
      • Partner Research
      • Strategic Planning Research & Advisory
      • Thought Leadership
    • RISK SOLUTIONS
      • Competitive Intelligence
      • Political Risk
      • Local Community Risk
      • Reputational Risk
      • Economic Risk
      • Unethical Competitors
      • Disruptive Threats
    • PERFORMANCE SOLUTIONS
      • Best Practices
      • Brand Awareness
      • Customer Satisfaction
      • Market Share
      • E-commerce Data Library
      • AMI Payments Coffee Chats
      • Crypto Understanding
  • Practice Areas
    • Consumer Goods & Retail
    • Consumer Services & Ecommerce
    • Cryptocurrency
    • Energy
    • Industrial
    • Logistics
    • Mining
    • Payments
    • Insurance
    • Healthcare
    • Education
  • About
    • About AMI
    • Case Studies
    • Press Room
    • Careers
    • Contact
  • THOUGHT LEADERSHIP
    • Insights
      • Payments
      • Ecommerce
      • Logistics
      • Mining
      • Energy
      • Cryptocurrency
      • Eco-political analysis
      • Consumer and Retail
      • Healthcare
    • Webinars
    • Reports and Whitepapers
    • Horizontes Leadership Forum
    • Thought Leadership Horizontes Leadership Forum Events
Market Insights that Unlock Opportunities in Latin America Market Insights that Unlock Opportunities in Latin America Market Insights that Unlock Opportunities in Latin America
  • Services
    • GROWTH SOLUTIONS
      • Consumer Insights
      • Investment Research
      • Market Research
      • Opportunity Benchmarking
      • Partner Research
      • Strategic Planning Research & Advisory
      • Thought Leadership
    • RISK SOLUTIONS
      • Competitive Intelligence
      • Political Risk
      • Local Community Risk
      • Reputational Risk
      • Economic Risk
      • Unethical Competitors
      • Disruptive Threats
    • PERFORMANCE SOLUTIONS
      • Best Practices
      • Brand Awareness
      • Customer Satisfaction
      • Market Share
      • E-commerce Data Library
      • AMI Payments Coffee Chats
      • Crypto Understanding
  • Practice Areas
    • Consumer Goods & Retail
    • Consumer Services & Ecommerce
    • Cryptocurrency
    • Energy
    • Industrial
    • Logistics
    • Mining
    • Payments
    • Insurance
    • Healthcare
    • Education
  • About
    • About AMI
    • Case Studies
    • Press Room
    • Careers
    • Contact
  • THOUGHT LEADERSHIP
    • Insights
      • Payments
      • Ecommerce
      • Logistics
      • Mining
      • Energy
      • Cryptocurrency
      • Eco-political analysis
      • Consumer and Retail
      • Healthcare
    • Webinars
    • Reports and Whitepapers
    • Horizontes Leadership Forum
    • Thought Leadership Horizontes Leadership Forum Events

The E-Commerce Customer Journey in Mexico

 The E-Commerce Customer Journey in Mexico
By Valentina Duque
 Posted April 4, 2022
 In Ecommerce, Logistics
The E-Commerce Customer Journey in Mexico2022-04-042023-01-19https://americasmi.com/wp-content/uploads/2018/08/ami_logo_web_default_01.pngAmericas Market Intelligencehttps://americasmi.com/wp-content/uploads/2022/04/the-e-commerce-customer-journey-in-mexico-market-data-market-research-analysis-1.jpg200px200px

E-commerce has become part of everyday life in Mexico. Currently, 7 out of 10 Mexican online consumers make purchases or payments online at least once a month, and 1 out of 10 make purchases every day, according to PayPal. In Mexico, e-commerce penetration is expected to reach 48.7% in 2022. In other words, there will be 63 million Mexicans who will buy online, according to data from Statista.

From a business viewpoint, the Mexican Online Sales Association (AMVO) forecasts that online sales in Mexico will account for 49.8% of all sales by SMBs in 2022. However, the commercial success of ecommerce merchants will depend on marketing experts who are able to identify and solve the current needs of Mexican online consumers. PayPal, for example, says that 90.6% of consumers in Mexico do research before making a purchase on the Internet, highlighting the importance of knowing the buying journey. In other words, knowing every channel, medium, or process that, over time, affects the judgment of Mexican consumers in their online brand selection, and knowing their payment experience and their after-sales experience in e-commerce.

With this in mind, at Americas Market Intelligence we have identified the main steps in the buying process among Mexican consumers, or customer journey, in relation to what businesses are currently offering.

Step 1: The Mexican Online Consumer Becomes Motivated

The Internet is a motivation channel for buying, even if this purchase may occur much later on or happen in physical establishments. Over 97% of consumers in Mexico involve the Internet at some point in the shopping process, according to AMVO. A practice known as webrooming is common, which consists in researching online and then buying the product at a brick-and-mortar store. Other practices include comparing prices online while at a brick-and-mortar store, or buying online after having seen the product in a physical establishment (showrooming).

97% of consumers in Mexico involve the Internet at some point in the shopping process.

When we look at the sources of inspiration for Mexicans in the motivation stage, the marketplaces Mercado Libre (inspiration for 45% of consumers) and Amazon (45%) stand out, according to data from Statista that match our own study of trends in LatAm. Brands in Mexico have reacted positively: 73% of businesses in Mexico offer their products on Mercado Libre, and 54% do so through Amazon, according to AMVO.

On the other hand, Statista also says 40% of Mexican online buyers are inspired by social networks, which is not surprising given that most Mexican internet users use WhatsApp (94.3%), Facebook (93.4%), Facebook Messenger (80.5%), Instagram (79.1%), and TikTok (70.4%). However, SMBs are falling behind: although 69% have an official Facebook account, just 48% have an official Instagram account, and barely 38% use WhatsApp.

To improve motivation, it is imperative that brands offer a multichannel presence consisting of social networks, their own website, and marketplaces. It may even include price comparison websites like Busca Ya, or Tiendeo, or couponing and discount websites. Efforts should also focus on digital advertising, based on objectives such as brand recognition and reach.

Step 2: The Mexican Online Shopper Compares and Evaluates The Products Before Buying

After motivation comes interest. At this second stage, the Mexican consumer has already detected a need or desire and is looking for different suppliers or brands that might satisfy it. In this regard, 8 out of 10 Mexican buyers check at least 6 different sites before deciding to buy, as demonstrated in the latest results of the Buen Fin, one of Mexico’s biggest e-commerce events.
More interestingly still, just 2 out of every 100 Mexican online buyers decide to purchase after checking just one site. This demonstrates the low level of brand loyalty among the Mexican population, and the need to create engaging advertisements and content. A good point of departure is focusing on online purchase drivers, including free delivery, fast delivery, coupons, and instant payment, as shown by the following graph with data from Data Reportal 2022.

In Mexico, just 2 out of every 100 Mexican online buyers decide to purchase after checking just one site. The low level of brand loyalty in Mexico forces businesses to implement a multichannel sales strategy.

At the consideration stage, we can see a gap in terms of digital advertising if we analyze the top 5 digital consultation channels in Mexico. For example, 64% of Mexican consumers consult search engines like Google before making a purchase, but only 17% of SMBs in Mexico have invested in Google Ads.

In this context, we might call the current digital strategy of Mexican businesses “incipient” in the best of cases. The AMVO survey shows that “having begun to sell their products online” is the predominant digital strategy for 53% of brands. Whereas, “beginning to sell to end consumers online” is a strategy implemented by just 38% of businesses.

Although 64% of Mexican consumers consult search engines like Google before making a purchase, just 17% of SMBs in Mexico have dared to invest in Google Ads.

Step 3: The Mexican Online Consumer Makes an Online Purchase

At this stage in the journey, the Mexican consumer has now decided on the product of a specific brand and will now look for a way to make the purchase. In this instance we will focus on a purchase closed solely through the digital channel, that is, e-commerce proper.

Digital purchases in Mexico are made almost exclusively using a cell phone. It goes hand in hand with mobile internet penetration in Mexico, which will reach 82% in 2022, according to data from Instituto Federal de Telecomunicaciones (IFT).

In fact, the AMI payments team forecasts that in 2022 mobile phones will account for a 70% share in volume of sales of Mexico’s e-commerce.

In terms of payment methods, 84.6% of Mexican online consumers are paying for their everyday purchases (daily, weekly, or monthly) with a debit card, according to PayPal. On the other hand, internal reports from AMI show credit cards as the main payment method in relation to market volume.

Right now, the preference in payment methods in Mexico is in line with what businesses are currently offering. Bank deposits and electronic transfers are the main payment methods that SMBs are offering for e-commerce. The third most offered payment method is the one integrated with the marketplaces in which brands sell their products. Cash on delivery is the other popular method, offered by 38% of businesses.

However, brands need to consider the fintech and neobank boom that has happened in Mexico in recent months. AMI analysts talk about a potential tipping of the scales in favor of new payment models such as Buy Now Pay Later. However, for Lindsay Lehr, head of AMI payment practices, it represents one of the “ugly” scenarios for payments in Latin America for 2022, owing to delays in the regulations for open banking and fintechs as a result of the pandemic.

Step 4: The Mexican Consumer Receives the Product Purchased Online

This stage is crucial for after-sales customer satisfaction, largely determined by logistical execution. Currently, 90.4% of SMBs in Mexico offer a mixed sales model that includes physical and digital channels (AMVO, 2021). However, for Diego Rodríguez, senior logistical practices officer at AMI, there is little technological integration between last-mile logistics providers and the  web pages, Facebook pages, Instagram pages and inventory-control systems of small business that sell online. The result: orders that go unfulfilled or are delayed, or products that are ordered but out of stock, all crucial elements that directly affect customer satisfaction. “If businesses want to adopt a mixed sales model,” says Diego, “they need to control their inventories and shipping in real time.”

Optimization in inventory management among Mexican SMBs

Problems in product logistics could be due to a lack of specialist logistics providers for SMBs or a lack of reliability in companies providing in these services. Data from AMVO show that just 9% of businesses in Mexico outsource the management of their inventory at warehouse level. And in terms of transportation, just 32% of businesses trust in outsourcing their shipping. To address this challenge, Diego Rodríguez mentions the case of large retail chains like El Palacio del Hierro, Walmart, and Liverpool, which allocated big budgets in 2020 and 2021 to developing sophisticated inventory-management systems. This enabled them to monitor their inventory in real time at fulfillment centers and brick-and-mortar stores. In the case of small stores in Mexico, some have now begun to make more use of the platforms offered by Shopify, Multicomercio, Prestashop, and Alegra to sell directly through their website. However, Diego says marketplaces like Amazon and Mercado Libre are indisputably the leaders in inventory management for small businesses in Mexico, and the ones that have grown most as a result of the pandemic.

Fast, low-cost shipping for Mexican SMBs

There has been exponential growth in startups providing last-mile services on the same day or even in under three hours, with an immediate impact on costs. “The costs associated with the last mile are rapidly increasing, to the point of eroding profit margins for physical sellers,” says AMI’s expert.

In fact, the high cost of shipping is a concern for 56% of Mexican businesses that sell online, according to AMVO, and more so if we consider that 61% of these offer free shipping as a promotional strategy. By contrast, just 36% of Mexican SMBs offer discounts during events like the Hot Sale. In other words, free shipping is a cornerstone among businesses that want a competitive edge.

Below are some of the recommendations that Rodríguez—who has led more than one hundred research studies on the logistics industry throughout Latin America—offers to reduce shipping costs:

  • Use price comparison sites like EnvioClick to find the best rates available.
  • Offer discounts for deliveries taking more than 2 days. Although Amazon standardized delivery in 2 days as the optimal period, customers are willing to wait if they get a discount.
  • Push the strategy of buy online/in-store pickup on the same day. This reduces shipping and packing costs.

At least 25% of Mexican online buyers have returned a product purchased online.

Mitigating the impact of product returns

At least 25% of Mexican online buyers have at some point returned a product purchased on online, and just 2 out of 10 consider the return process difficult, according to AMVO. In fact, says Diego, returns are easier now than before the pandemic, thanks to the greater number of options available, including physical points of return. However, return policies should be clearer and better communicated as they can become an excellent point of differentiation for online sellers and last-mile businesses. “At AMI we have identified greater restrictions in returns, and even maximum numbers of returns per month to reduce costs, but a flexible returns policy can create loyalty among customers and increase sales, especially in categories like fashion, cosmetics, and sports,” explains Diego.

He adds:

“Last-mile companies definitely have an opportunity to improve return processes and turn them into a greater revenue generator. From my perspective, carriers have not defined an optimal sales strategy properly in terms of the returns service in Mexico because online stores have a greater fear of losing money as a result of returns than the benefits they might obtain from an effective returns policy.”

In conclusion, with regard to the logistics of online stores, or stores with a mixed sales model, Diego Rodríguez has these tips for increasing customer satisfaction, improving the management of shipping, and optimizing costs:

  • Keep customers informed during the package’s journey at all times, from the day it is dispatched to the day it is delivered.
  • Text messages are more effective than e-mails.
  • If delays in delivery are expected, it is essential to get ahead of the information that will be given to the customer, and assume responsibility without blaming third parties.
  • When the buyer’s signature or receipt is required, it is important to coordinate the best delivery time window one day beforehand by text message. It is even better if the logistics company waits for the buyer up to 15 minutes instead of making a second or third delivery attempt.
  • Make returns easier for customers. Alliances can be negotiated with physical establishments such as convenience stores, pharmacies, and shopping malls. The routes taken by last-mile companies can be leveraged to collect customer returns and reduce costs.

If you would like to improve the internal logistics of your business, get in touch with Diego Rodríguez.

Step 5: The Mexican Customer Develops Brand Affinity

The last step in the online buying journey is creating loyalty. For experts, this step relates to the repetitive exercise of buying and customer interaction, until they develop “love” or loyalty toward the brand. Strategies at this stage are aimed at increasing customer lifetime, while improving the average ticket and purchase frequency. Now, at a time when digitalization has made brand switching something run-of-the-mill for e-commerce, businesses in Mexico need to pay more attention than ever to their after-sales service and communication on social networks. In other words, the customer’s buying journey never ends.

Ultimately, it is worthwhile doing exhaustive research on the weak points in the buying journey, and how it would be possible to attract more customers to the digital channel (see graphic below).

Next Steps

Contact us if you are interested in an exhaustive study exploring the buying journey of your ideal customers, which also highlights opportunities for improvement with a better return on your investment. At AMI our practices specialize in logistics, payments, and e-commerce. We have worked on the strategic planning of various Mexican businesses, focusing on objectives such as lead generation, new-supplier sourcing, satisfying the ideal customer, and evaluating rivals.


Keep up to date with our Logistics insights

Valentina Duque
Valentina Duque
Valentina Duque is a marketing assistant at AMI. Her areas of focus include instructional design, content marketing, SEO and copywriting. She also assists with market research and project development across AMI's practices.
Recommended Posts
  • Latin America Payments 2023: The Good, the Bad and the Ugly
    Latin America Payments 2023: The Good, the Bad and the Ugly
  • The Best-Selling Products in Latin America
    The Best-Selling Products in Latin America
  • Los productos más vendidos en Latinoamérica
    Los productos más vendidos en Latinoamérica
Recent Posts
  • Why the SVB Bust Is a Boon for Cross-Border Payment Providers
    Why the SVB Bust Is a Boon for Cross-Border Payment Providers
    March 23, 2023
  • 2023 Global Payments Megatrends
    2023 Global Payments Megatrends
    February 24, 2023
  • 2023 Latin America Payments Megatrends
    2023 Latin America Payments Megatrends
    February 24, 2023
  • Microfinance, Remittances, and Open Finance: Potential for Real Impact in El Salvador
    Microfinance, Remittances, and Open Finance: Potential for Real Impact in El Salvador
    February 24, 2023
  • Microfinanzas, remesas y open finance: una posibilidad de impacto real en El Salvador
    Microfinanzas, remesas y open finance: una posibilidad de impacto real en El Salvador
    February 24, 2023
  • Panorama de datos sobre la industria logística de Latinoamérica
    Panorama de datos sobre la industria logística de Latinoamérica
    February 24, 2023
In the News
  • AMI Publishes 10 Year-Outlook Forecast for Latin America

    Miami, March 6, 2023—Americas Market Intelligence (AMI) has just published a new report, entitled The 10-Year Outlook for Latin America, which is available for free download on the AMI website. Based on AMI’s 30 years of experience in conducting market intelligence for Latin America, The 10-Year Outlook for Latin America highlights several massive, long-term trends […]

    Read more
  • “Why we won’t see low inflation again”—AMI’s John Price

    “Why we won’t see low inflation again”—AMI’s John Price

    John Price, Managing Director of Americas Market Intelligence (AMI), spoke at the MEMA Global Summit in Florida in February 2023.  The recap of the conversation was published in Jobber News. Below an excerpt: Even though Bank of Canada governor Tiff Macklem called inflation “too high,” John Price, managing director of Americas Market Intelligence, warned that […]

    Read more
  • “Colombia y Paraguay se imponen entre inversionistas”

    “Colombia y Paraguay se imponen entre inversionistas”

    BNamericas citó apuntes de la conversación entre John Price, Managing Director de Americas Market Intelligence, y Guillermo Rishchynski, ex embajador en Brasil, Colombia y México y director ejecutivo del Banco Interamericano de Desarrollo. El diálogo se dio en el foro de liderazgo intelectual Horizontes, iniciativa de AMI diseñada para informar e inspirar a los altos […]

    Read more
  • Experto AMI en pagos digitales habla para el diario La Nación

    Experto AMI en pagos digitales habla para el diario La Nación

    Ignacio E. Carballo, líder en Fianzas Alternativas en Americas Market Intelligence, habló para La Nación sobre la adopción de pagos digitales en Argentina en comercios formales e informales, y de la transformación financiera del país. Dice La Nación: Hacía años que la Argentina venía preparándose para la digitalización de los pagos. Pero solo con la [...]
    Read more
  • “El efectivo dejará de ser la principal opción de pagos en Latinoamérica”

    “El efectivo dejará de ser la principal opción de pagos en Latinoamérica”

    El Espectador publica las conclusiones más interesantes del reciente estudio de Kushki y Americas Market Intelligence, según el cual en 2023 se destacarán las transacciones sin contacto, la interoperabilidad y los pagos P2P. Kushki, la compañía de tecnología de pagos que conecta a Latinoamérica con pagos, realizó el estudio “Tendencia de Pagos Digitales 2023”, de […]

    Read more
  • AMI expert interviewed about how LatAm could digitize the energy sector

    AMI expert interviewed about how LatAm could digitize the energy sector

    The Inter-American Dialogue’s daily Latin America Advisor covered the digitization of the energy sector in Latin America, as “digital technologies are set to make energy systems around the world more connected, efficient, reliable and sustainable, playing a key role in transforming distributed energy resources into valuable grid assets”. The magazine featured a Q&A of some […]

    Read more
  • AMI Publishes Report on Crypto Usage in Latin America

    Miami, January 25, 2023—Americas Market Intelligence (AMI) and Payments & Commerce Market Intelligence (PCMI) have just published a new report entitled Crypto Usage in Latin America, which is available for free download on AMI’s website. The report delves into how LatAm crypto consumers are behaving and the potential growth of crypto adoption in Latin America. […]

    Read more
Americas Market Intelligence

Contact Us

Privacy Notice

Terms and Conditions

Understand LATAM Better

Sign up to receive AMI Perspectiva, our LatAm insights newsletter.

SUBSCRIBE HERE
Follow us for Fast Catch-Up

AMI’s social media feeds share our data-rich presentations, latest analysis pieces, incisive videos, news and studies from all over the region and much more.

Linkedin Twitter Slideshare
© Americas Market Intelligence | Bilmar Technologies
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Read More Cookie SettingsAccept
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-advertisement1 yearThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Advertisement".
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
PHPSESSIDsessionThis cookie is native to PHP applications. The cookie is used to store and identify a users' unique session ID for the purpose of managing user session on the website. The cookie is a session cookies and is deleted when all the browser windows are closed.
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
CookieDurationDescription
bcookie2 yearsThis cookie is set by linkedIn. The purpose of the cookie is to enable LinkedIn functionalities on the page.
langsessionThis cookie is used to store the language preferences of a user to serve up content in that stored language the next time user visit the website.
lidc1 dayThis cookie is set by LinkedIn and used for routing.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
CookieDurationDescription
_gat1 minuteThis cookies is installed by Google Universal Analytics to throttle the request rate to limit the colllection of data on high traffic sites.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
CookieDurationDescription
_ga2 yearsThis cookie is installed by Google Analytics. The cookie is used to calculate visitor, session, campaign data and keep track of site usage for the site's analytics report. The cookies store information anonymously and assign a randomly generated number to identify unique visitors.
_gid1 dayThis cookie is installed by Google Analytics. The cookie is used to store information of how visitors use a website and helps in creating an analytics report of how the website is doing. The data collected including the number visitors, the source where they have come from, and the pages visted in an anonymous form.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
CookieDurationDescription
bscookie2 yearsThis cookie is a browser ID cookie set by Linked share Buttons and ad tags.
IDE1 year 24 daysUsed by Google DoubleClick and stores information about how the user uses the website and any other advertisement before visiting the website. This is used to present users with ads that are relevant to them according to the user profile.
test_cookie14 minutesThis cookie is set by doubleclick.net. The purpose of the cookie is to determine if the user's browser supports cookies.
VISITOR_INFO1_LIVE5 months 27 daysThis cookie is set by Youtube. Used to track the information of the embedded YouTube videos on a website.
YSCsessionThis cookies is set by Youtube and is used to track the views of embedded videos.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
CookieDurationDescription
__dpd_cartsessionNo description
_csrf_tokenNo description available.
AnalyticsSyncHistory1 monthNo description
CONSENT16 years 6 months 5 days 4 hoursNo description
li_gc2 yearsNo description
UserMatchHistory1 monthLinkedin - Used to track visitors on multiple websites, in order to present relevant advertisement based on the visitor's preferences.
yt-remote-connected-devicesneverNo description available.
yt-remote-device-idneverNo description available.
SAVE & ACCEPT
Powered by CookieYes Logo