Mexican E-commerce to Surge by 14% in 2023: Mercado Libre

Online sales have become a crucial resource for businesses, with e-commerce sales in the region surging after the COVID-19 pandemic. E-commerce is reshaping the retail landscape, empowering small and medium enterprises (SMEs) to connect with their customers more efficiently. In Mexico, e-commerce is expected to grow at a double-digit rate in 2023, reports Mercado Libre. 

“The Mexican market continues to be a very attractive market, with relatively low e-commerce penetration since only 14.2% of all retail sales in [the country] are already through e-commerce and the expectation of growth this year is 14% for Mexico,” says David Geisen, Country Manager, Mercado Libre Mexico.

While e-commerce has been available for many years, many businesses were forced to adopt it due to the COVID-19 pandemic. In 2020, the total value of e-commerce sales in Latin America stood at roughly US$68 billion. Projections suggest that by 2025, this amount could potentially surge to about US$160 billion, a nearly 88% growth compared to the 2020 figures.

Market-wise, Mexico is the second largest adopter of e-commerce in Latin America, representing 28.23% of the region’s e-commerce sales. Brazil stands in first place with a 31.62% share. By the end of 2023, e-commerce users are expected to reach 337 million in the region. Between 2022 and 2027, this number is expected to increase by 22%, resulting in some 390 million e-commerce users across the region by the end of that period.

“During this year, we have invested US$1.65 billion in Mexico. We are in the process of hiring more than 5,000 new employees and project to end the year with a workforce that will exceed 12,000 employees in [the country],” says Geisen. “This will enable us to provide support to more than 1 million SMEs that are part of our ecosystem.”

According to Mercado Libre's 2Q23 revenue report, Commerce Revenues in Mexico, encompassing earnings from the use, sales and advertisements on its website, reached a total of US$475 million. Fintech Revenues in Mexico, which cover all of Mercado Pago's services, including the recently introduced credit card, amounted to US$228 million. Overall, in the second quarter of 2023, Mercado Libre reported a net revenue of US$703 million in Mexico and US$3.4 billion globally