SMEs Find Opportunities in Digital SalesBy Jorge Ramos Zwanziger | Tue, 08/03/2021 - 17:36
The COVID-19 pandemic caused enormous economic turmoil that concerned many companies around the country, but many found ways to stay afloat and even grow thanks to the rise of e-commerce. Digital sales have changed the way many companies operate and allowed them to pursue new opportunities in the digital realm. According to the third Study of Online Sales in SMEs 2021, of the Mexican Association of Online Sales (AMVO), in Mexico, six of every 10 SMEs sell their products online in 2021.
It is clear then that, digital sales have become more important for today´s market, as consumers have been increasingly migrating to this channel. Companies that were not selling through these channels have decided to transition. “During 1H2021, surveyed SMEs declared that they have experienced growth of 100 percent on sales generated by their digital channels. Now, they expect Online Sales to represent almost 35 percent of their total sales by the end of the year and, for 2022, they are forecasting that online sales will continue to increase their contribution to total sales,” explains AMVO in its study.
E-commerce has had a significant impact on Mexican SMEs. According to AMVO, companies now feel that digital sales are not an extra, but mandatory. Companies have had to reinvent themselves to adapt to the pandemic and create opportunities and areas of development. AMVO indicates that 76 percent of surveyed companies believed that digital participation allowed them to be even more competitive. According to some SMEs, digital sales were their only source of revenue through the pandemic.
In Mexico, the biggest sector that capitalized on digital sales were food and beverages thanks to smartphone apps like Rappi, Cornershop and Uber Eats, which also made long strides through the pandemic as people could not leave their homes. Other sectors booming during these times are health, entertainment, fashion, and products for children, among others.
What About Logistics?
According to the study, SMEs believe that logistics is one of the biggest challenges to participate in the digital market, as delivery costs can be high. About 56 percent of companies reported challenges regarding high costs, 36 percent regarding damages in shipping, 36 percent regarding challenges when shipping increased the total cost of the product, 31 percent regarding delivering products on time, 21 percent regarding delivering to rural or remote areas, among many other logistical challenges. Addressing these challenges becomes more important for companies that want to find success in the digital sector and maintains a relationship with the customer. “This is where the new trend of prioritizing relationships between brands and buyers as a primary objective over sales starts to gain importance,” explained Francisco Álvarez, CCO and Co-Founder of Getin, in an interview with MBN.