What to sell on Amazon Mexico?

If you have an Amazon account and you’re thinking of expanding your operations internationally, Mexico could certainly be a market with many opportunities. That’s why, in this guide on what to sell on Amazon in Mexico, we shall explore how to harness the potential of this country and achieve the best business results.

Let’s get started right away!

Selling on Amazon in Mexico

The potential of Mexico: a country with over 60 million online shoppers

Today, Mexico stands as one of the key e-commerce markets in Central and South America. Its annual growth exceeds 20%, with over 65 million people engaging in online shopping. To put it in perspective, this is a population of online shoppers more than double that of some European countries, which, according to the latest statistics from Eurolutions, stands at 28 million.

This data, confirmed by the Mexican Association of Online Commerce (AMVO), asserts that e-commerce in the country experienced robust acceleration during the Covid-19 pandemic. Even after the end of the health crisis, it continued to grow, albeit at lower percentages.

The domestic market for Mexican e-commerce is currently estimated at around $26 billion, with a steady increase in double-digit figures that positions Mexico as one of the leading countries in the world in terms of retail e-commerce growth.

Within this impressive population of online shoppers, both men and women share the pie: in fact, women represent 51% of users who have made at least one online purchase.

Amazon in Mexico, extraordinary growth awaits us

Now that we have ascertained that Mexico is a country that certainly embraces online shopping, let’s delve further into the evolution of Amazon in the country.

Let’s remember that Amazon.com.mx is Amazon’s marketplace for buyers in Mexico, and the American company entered the Mexican market in 2013, initially focusing on the exclusive sale of Kindle e-books.

However, thanks to its great appeal and its proximity to the United States, Amazon began selling physical products in the country as early as 2015. In 2017, it introduced the Prime program, offering benefits similar to those provided to users in other countries, such as free shipping and access to Prime Video.

What Mexicans buy online and on Amazon

But what do Mexicans buy online and on Amazon? According to data from the same association, online purchases are predominantly headed by food products. In second place, we find:

Fashion
Small appliances
Non-alcoholic beverages
Medications
Beauty and personal care items

There are some market segments that are experiencing strong annual growth, despite their absolute numbers are lower than the sectors mentioned above. This is the case for auto parts and electronic products, which have grown by almost 50% compared to the previous year.

For who wants to learn more, we point out the recently published AMVO report on online sales in Mexico (pdf).

How Mexicans pay for their online purchases

Regarding payment methods, electronic currency is by far the preferred instrument for online buyers in Mexico.

Nonetheless, while debit cards and personal credit cards remain the preferred payment methods for Mexican online shoppers, an increasing number are seeking alternative solutions, such as installment purchases.

Shopping in Mexico: the trend towards sustainable consumption

Among the various trends that we believe are particularly interesting is the strong preference of Mexican citizens for sustainable shopping. According to research by the AMVO, 60% of online shoppers are interested in purchasing from places that offer eco-friendly packaging, and 35% have expressed interest in buying from agricultural and indigenous cooperatives.

Increasing interest in international purchases

Within the rich set of statistics on Mexican e-commerce, there is one that should generate particular interest for Italian sellers. The AMVO stated that in 2022, 80% of Mexican online shoppers bought from international retailers. This is a real boom compared to the 50% that characterized the previous year!

However, the good news doesn’t end there. While in 2021, Mexicans buying from foreign sellers mainly did so from the United States (64%), this proportion has decreased significantly in 2022 (49%), in favor of other international markets.

The biggest beneficiary of this trend has been China, which has acquired a market share in online purchases in Mexico of 34%. European products have also experienced a significant increase.

Online marketing in Mexico, key events on the calendar

Similar to much of the world, the highest number of e-commerce sales in Mexico is concentrated during the December holidays. Following in order of relevance on the calendar, we have “El Buen Fin,” a promotion adopted by most Mexican retailers in mid-November, which originally started as a weekend event and then evolved into a promotion lasting a whole week.

Representing very important moments for e-commerce sales in Mexico, we also have:

Black Friday
Hot Sale, an initiative by the AMVO itself, inviting e-commerce sellers to offer significant discounts at the end of May/beginning of June
Cyber Monday
Mother’s Day

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Why is it profitable to sell on Amazon Mexico?

At this point, you might still be wondering why it would be beneficial to sell on Amazon Mexico. Well, besides the remarkable growth of this online market, there are at least three reasons you should consider for assessing a positive expansion of your activities in this market. Let’s examine them:

Preference for Amazon.com.mx.
Appreciation from international sellers.
Better profit margins.

Preference for Amazon.com.mx

The first reason favors sellers that choose to enter the national version of Amazon. This gives them the potential to capture, to a far more dedicated and attractive extent, the Mexican target audience. Remember that by listing your products on Amazon.com.mx, you ensure considerably greater exposure than simply offering international shipping to Mexico, and buyers prefer to purchase from sellers operating within their own market. In summary, by listing your products on Amazon Mexico, you will significantly increase the visibility of your offerings.

Appreciation from international sellers

Another compelling reason to sell on Amazon in Mexico is that Mexicans are increasingly inclined to buy from international sellers due to the variety of products and competitive prices they offer. Additionally, Amazon Mexico hosts specific sales events. Think, for example, of the HOT Sale or El Buen Fin, which offer excellent opportunities to boost sales. In other words, targeting Mexican consumers during these events, with offers dedicated to them, can significantly increase sales.

Better profit margins

Additionally, there’s a third reason that we can’t overlook. Although it may not seem so at first glance, selling on Amazon Mexico could provide you with the opportunity to achieve better margins compared to what you’re accustomed to. Latin Americans are accustomed to higher prices due to the high inflation rates and import taxes they are subject to. Expanding your operations in Mexico will allow you to set higher prices, potentially leading to better profit margins.

Tips for selling on Amazon Mexico

Hoping that the above points have sparked an interest in you for a possible expansion of your activities towards Mexico, we want to conclude this brief guide to selling on Amazon in this country with some practical application tips.

We will specifically look at why it is important to:

Adapt listings for the Mexican audience
Comply with regulations and standards
Consider shipping costs
Prepare excellent customer service
Promote the brand.

Adapting listings for the Mexican audience

First and foremost, as we’ve mentioned several times in the preceding lines, Mexico is a country with well-defined characteristics. Therefore, it’s crucial to adapt ads, titles, and product descriptions to align with the preferences of local consumers.

This cannot and should not be limited to the use of a literal translation service. It’s essential that ads be carefully tailored to the characteristics of Mexican consumers. Unfortunately, some international companies make the mistake of translating content directly from the foreign language to Spanish. That is, they don’t consider the effectiveness of translated keywords in the local market.

It’s cruial to avoid literal translations and to focus instead on optimizing content for the Spanish-speaking audience.

Complying with regulations and standards

That said, Mexican customs authorities rigorously regulate the types and characteristics of products that can enter the country.

For example, toys intended for children under 3 years old may be subject to potential restrictions. Packages should not exceed a weight of 35 kilograms or dimensions of 125 cm.

Furthermore, it’s important to note that regulations often change and do so suddenly. Therefore, it’s always good to stay updated on how European goods arriving in Mexico may be treated. This way, you won’t risk having your products held up in customs for an extended period.

Considering shipping costs

Keep in mind the considerable distance between Europe and Mexico. Therefore, carefully consider what the cost of shipping the merchandise will be.

Some shipments may incur quite high fees. These fees can potentially influence the final prices of the products. Therefore, it’s helpful to thoroughly analyze the available alternatives. Identify the most reliable shipping partners to ensure timely deliveries.

We recently discussed how to calculate optimal inventory in one of our guides, which we recommend you to review. Our inventory optimization service allows you to calculate the ideal replenishment quantity of products in real-time. You can try it out by starting the free trial.

Incidentally, we’d also like to indicate our insight on the topic of calculating Amazon selling fees. Take this into account for proper planning of business margin activities on the marketplace.

Preparing excellent customer service

Not all Mexican consumers can or want to communicate with customer service in English. Therefore, European companies that do not speak Spanish must organize themselves to communicate with consumers in their native language. This is highly appreciated by consumers in this country. As such, it’s fundamental for building trust and maintaining a positive reputation in this market.

Therefore, it’s essential to ensure that your customer service is capable of providing qualified support. Respond promptly to inquiries and make the most of every feedback!

Promoting the brand

Your brand may not be very well-known in Mexico. To overcome potential initial distrust, you may need an extra boost to generate the first sales.

Therefore, consider collaborating with influencers and local brands to promote your brand. Also, consider launching targeted advertising campaigns on Amazon.

Furthermore, if you want assistance in improving visibility, utilize our automatic review request service. We’ll take care of sending feedback requests for your orders. And in doing so, we’ll apply best practices to increase positive reviews.

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