E-Commerce in Mexico: What Happened in 2023; What Awaits in 2024?

Now that we are starting 2024, it is worthwhile to look at some figures and data about the behavior of e-commerce and users during 2023 in Mexico. 

Although e-commerce grew at an accelerated pace after the pandemic, there are still challenges to face for all of us whose goal is to get the shopping cart to a transaction. We know that all the efforts we make to have a  well-designed website, with product photographs, SEO and payment gateways with options for everyone, must be reflected in effective transactions. If not, it becomes obvious that some of the above efforts are not being done well. 

According to Expansión magazine, by October 2023, e-commerce sales increased by 27%. Eighty-five percent of those surveyed by the magazine agreed that part of the success of online sales relates to offering different payment options, and more recently, to offer payment flexibility (fortnightly, monthly, among others). 

In Mexico, the online sales market had a value of US$31 billion, according to Americas Market Intelligence (AMI), and it is expected to grow by 33% by 2026. Within the Expansión survey, we also found expectations that we will face a much more demanding consumer in 2024, not only in terms of the purchase, but also in the processes of delivery and post-sale services. These are areas where Amazon and Mercado Libre undoubtedly lead, not only in the number of visits but also in security and trust strategies during the purchase and delivery process, which leads to customer retention. 

Within the digital businesses environment, it is worth mentioning those areas that have become very profitable. These include:
- Online education
- Fintech 
- Virtual reality
- Content creation
- Collaborative economy
- Artificial intelligence
- Blockchain
- Data industries

According to AMI, the categories that Mexicans prefer to buy online are:
- Food delivery
- Fashion
- Beauty and personal care
- Toys
- Electronics
- Books, magazines, music and art
- Household cleaning products
- Sporting goods and apparel
- Cellphones and accessories 
- Household appliances

AMI also points out that  during Mexico’s “Hot Sale,” the most sold products were:
1. 40% Fashion
2. 24% Beauty and personal care
3. 23% Computers, tablets or cellphones
4. 20% Audio, television and videos
5. 17% Small appliances
6. 16% Consoles and video games
7. 14% Major appliances and white goods
8. 14% Furniture and decoration

According to a World Pay report, the most common payment methods were:
Credit card 33%
Digital wallet (Paypal) 27% 
Debit card 22% 
Transfer to account 6% 
Buy Now Pay Later 1%

If we talk about e-commerce trends for 2024, we have:
- Personalizing the shopping experience
- Integration of augmented reality and virtual reality
- Increase in mobile commerce and sales through social networks
- Increase in the demand for sustainable products and services

Social networks will continue to be key to the purchase of a product. According to Statista, 40% of consumers in 2023 were convinced to buy a product thanks to a social network. In 2024, we need to consider Tiktok as an allied network in digital business without forgetting, of course, Instagram and Facebook.

Artificial intelligence and machine learning are two other important trends for 2024.They are undoubtedly transforming the way we do business today. A chatbot through artificial intelligence can help us to keep customers active even when our company "sleeps," resolving questions from potential customers and helping to successfully carry out the purchase process. 

It is important to note that more and more people buy from their cellphones, which is why we cannot forget to adapt our online stores to a mobile version, since more than 70% of online sales are made through a cellphone.

One of the biggest concerns in e-commerce is the user experience; any discomfort or bad experience will lead the user to our competition. That is why the investment to ensure the user of our e-commerce has a pleasant, comfortable and easy shopping experience is so important. 

Regardless of all these numbers, we need to be aware that part of the success of our e-commerce is the synchronization of the efforts of digital and non-digital strategies. iIncreasingly, we are seeing how what is said or published on social networks has to go hand in hand with what is happening in-store or physically. That is, the public has to know what benefit they are gaining by buying in the physical store and what benefit they gain in buying on the website.

If you have an online business or you are about to venture into the digital world, do not forget to consider all of the above because 2024 will be  even stronger in this regard than the previous years.