E-Commerce Resists Inflation, Exceeds Expectations in 2022

The confinement due to the COVID-19 pandemic led to a greater increase in the demand for products and services online, in such a way that e-commerce since 2021 has consolidated as one of the main digital sales channels and methods of trade for  business, with better impact nationally and internationally for small and medium enterprises.

In the case of Mexico, it is the country that has grown the most in terms of e-commerce. According to the Mexican Association of Online Sales (AMVO), the value of e-commerce retail in 2021 amounted to MX$401 billion, representing 11.3 percent of the total retail channel. Thus, our country is ranked  ninth in the Top 10 of the world's fastest-growing nations in e-commerce.

Online sales have become a daily practice for Mexicans and an important activity for economic growth, since selling and offering products in this modality has multiple advantages, mainly to ensure greater permanence of the business and reach in a larger market, but it is necessary to understand the new needs of consumers.

A study conducted by Oracle Retail reveals that 68 percent of Mexicans who shop online would be willing to pay more for an accelerated delivery of their Christmas purchases. While 53 percent say that the speed with which their orders are delivered is a highly influential factor in their purchase decision. It is also noted that consumers in our country are choosing to return to stores but expect retailers to give them omnichannel service options to ensure the availability of the product they are looking for in the most convenient way for them, either by shipping or in-store pickup.

In this context, where physical and online retail coexist, the "endless aisle" concept arises, which consists of selling products that are not in stock at that moment, but are in stock in another of business’ stores or warehouses. In this way, the loss of a sale is avoided when the work is already done and there is a customer ready to buy. 

Through the endless aisle, the consumer will not be left without the product he is looking for and will receive it in the store where he is or in his own home, in the shortest possible time, providing a satisfactory shopping experience and building customer loyalty. 

In the context of this growth and the consolidation of e-commerce in Mexico, one of the factors that has put pressure on the survival of online shopping is inflation. However, specialists agree that price increases have had an impact on staple products, but for those where the increase is absorbed by the seller to continue marketing its product, such as clothing or electronics, there is still a high demand and a growth rate of 92 percent, with an average ticket of US$362.

Another of these successful categories is the sale of pet products, which presented 70 percent growth in our country during the first six months of 2022 and reached an average ticket of US$49 dollars. Beauty and personal care products are also breaking records and are among the favorites of the Mexican online shopping public.

The sale of soccer items is not far behind and this year will benefit from the World Cup, which generates great interest, reflecting an increase in sales of official balls, jerseys of the national teams and other official products, as well as complementary items to practice the sport, such as soccer shoes, shorts, shin guards, goalkeeper gloves and goalkeeper kits.

Digital advertising also plays a strategic role in consolidating online commerce, and various technological tools, such as artificial intelligence (AI), can significantly improve the return on investment in advertising.

Recent studies show that 75 percent of companies that implement AI in their advertising campaigns, witnessed an increase in the sale of their products and services by at least 10 percent. In addition, it has been shown that companies that use this tool, improve customer satisfaction by between 10 percent and 79 percent.

During 2022, 12.4 percent of retail sales in Mexico will be made via e-commerce and by 2026 these figures will represent 16.5 percent, surpassing Argentina and all the countries in the region, with the exception of Brazil, which continues to maintain its leadership. 

Given the exponential growth of e-commerce, ONEST Logistics, a leading Mexican logistics services company, recommends adopting e-commerce because companies could lose up to 20 percent in sales by not investing in digitization. In addition, digital transformation generates robust solutions, reduces costs, adapts or anticipates customer demands, improves delivery route planning, achieves a more agile distribution and improves inventory management, among other benefits.

E-commerce is no longer an option. Regardless of the size of the company, it has become a necessity for those who want to provide continuity to their business through digitization. It is a trend that is here to stay and will continue to grow in the coming years.