E-Commerce Growth in Mexico Reshapes Latin American Logistics

The surge of e-commerce across Latin America continues to reshape the logistics landscape, particularly in Mexico, as demand for faster, more efficient delivery solutions rises. In 2023, the e-commerce logistics market was valued at US$426.2 billion in 2023 and is projected to register a CAGR of over 14% between 2024 and 2032, according to Global Market Insight.  

Black Friday 2024 set new benchmarks, reaching US$10.8 billion in worldwide sales—a 10% increase from 2023—according to Adobe Analytics. This growth highlights the accelerating shift toward online shopping and the critical role logistics plays in meeting consumer expectations. 

PYMNTS Intelligence reported that 72% of consumers made at least one online purchase during Black Friday, while Salesforce noted that 69% of those purchases were made on mobile devices—a 1% year-over-year increase.

The impact of e-commerce on logistics is particularly pronounced in Mexico City, which has emerged as the country’s logistics hub. From 2021 to 3Q24, over 3.5 million square meters of industrial space were leased in the city and its metropolitan area, with 32% attributed to e-commerce operations, according to CBRE. Francisco Muñoz, Executive Vice President of Industrial and Logistics, CBRE Mexico, noted that the pandemic spurred significant changes in supply chains, further driving demand for e-commerce logistics solutions.

The holiday shopping season, including Black Friday and Mexico's Buen Fin, tests the capacity of logistics providers. Sales during these events could surpass historical records, reaching MX$165 billion and generating 4 million online orders. 

To address these challenges, companies are investing in automation and predictive technologies. Amazon is expanding its logistics network to serve 400 cities in Mexico. Leveraging machine learning and artificial intelligence, the company enhances inventory movement and anticipates demand, enabling smoother operations during high-demand periods.

The rise of digital payments is another transformative trend. Mobile wallets and buy-now-pay-later (BNPL) options are gaining traction across Latin America, with tools like CoDi and Dimo in Mexico and BNPL systems in Colombia and Peru growing in popularity. For logistics providers, this requires adapting operations to integrate digital payment options, particularly for last-mile services. Additionally, solutions like smart lockers and pickup points are becoming pivotal in urban areas, helping reduce costs and improve delivery times.

Physical stores are also evolving, often functioning as distribution hubs. Strategies like click-and-collect, which allow consumers to pick up online orders in-store, are gaining prominence. Although foot traffic in physical stores dropped by 8.2% during Black Friday, businesses offering discounts of 40% or more successfully drew customers, according to Sensormatic Solutions.

To remain competitive, logistics companies in Latin America must invest in digital infrastructure and automation. Predictive analytics can forecast demand patterns, while robotic systems in warehouses optimize order fulfillment during peak periods, according to MBN expert Anabell Trejo, CEO and Co-Founder, Getin. “This capability empowers businesses to anticipate customer behaviors and proactively respond to market shifts,” she said.