Exploring the Potential of Pharmaceutical E-Commerce in Mexico

Pharmaceutical e-commerce in Mexico has become a topic of interest for experts, particularly in the post-pandemic era. Two major pharmacy chains, Farmacias del Ahorro and Farmacias San Pablo, have been among the Top 20 most visited retail sites in Mexico, highlighting the importance of this category. Furthermore, major marketplaces, such as Amazon and Mercado Libre, as well as retail online stores like Walmart, Soriana, and Chedraui are also contributing to a substantial online sale of the “pharmacy” category.

According to the Mexican Online Sales Association (AMVO), Mexico's retail e-commerce market grew by 23% in 2022, making our country one of the Top 5 nations with the best incremental performance, with the value of the market having tripled since 2019. The most popular categories among Mexican consumers are food delivery, fashion, and beauty products. Although pharmacy is ranked only 12th, just a third of internet users in Mexico are buying medicines online, which represents a significant opportunity to meet customer needs and indicates ample room for growth in the near and midterm future.

Comscore reported that in 2022, the healthcare online retail category saw almost 8 million monthly visits from Mexican users, with the majority aged 35 years or older. Sixty-five percent were female. Furthermore, 8 out of 10 users preferred to access these sites through their smartphones, highlighting the importance of mobile optimization for businesses operating in this category. 

It is worth noting that customers in this category require a constant and consistent supply of their medications, especially for chronic degenerative diseases that require treatment for prolonged periods of time, if not for life. Therefore, a satisfied customer who uses an online service could have significant long-term value. Currently, 7 out of 10 Mexican internet users who purchase medicines online acquire their products on a monthly basis.

Debit and credit cards are the preferred methods of payment in all e-commerce categories, including the pharmacy sector. However, in a country with limited access to financial services, this could hinder the development of digital commerce. Although the majority of transactions in online pharmacies are made through financial services, a significant number of users prefer to pay in cash upon delivery. Therefore, the growth of this category may not necessarily be dependent on financial inclusion.

An important factor to consider for the successful development of online pharmaceutical sales is the high level of consumer trust in the safety of digital purchases in this specific category. According to AMVO, “pharmacy” has one of the highest security perception rates among online shoppers. In fact, 78% of consumers in this category report feeling secure about the products they acquire through digital channels.

One of the main obstacles that retailers must overcome is product returns, which can result in significant costs. In the fashion category, for example, 36% of products are sent back, while electronics and electric household devices have return rates of 24% and 10%, respectively. However, the pharmacy category represents a different scenario, with only 1% of people giving the products back, making it an attractive option for sellers.

In Mexico, drug sales are subject to strict regulations established by the Federal Commission for Protection against Sanitary Risks (COFEPRIS). Online pharmacy retailers must obtain the same sanitary authorization and comply with COFEPRIS requirements as brick-and-mortar stores to ensure that they meet the standards for selling pharmaceutical products. This regulatory framework is well in place to ensure the safety and efficacy of the products sold and to protect consumers from potential health risks associated with the use of medicines.

Mexico faces a persistent problem in traditional commerce regarding the sale of unregulated, expired, or altered medicines. Unfortunately, this issue has also been replicated in the online world, and it is crucial for consumers to be aware of the potential risks. For instance, there is a risk of acquiring counterfeit or low-quality medicines through unauthorized websites. It is important to purchase medicines online only from authorized sites that have a reliable reputation.

Another potential risk related to the sale of medicines online is self-medication. Consumers may self-diagnose and self-medicate themselves without any doctor’s supervision, which can have serious consequences for their health and safety. It is essential that patients consult a healthcare professional before taking any medication to avoid adverse health effects.

My final thought is that e-commerce of medicines in Mexico represents a significant growth opportunity for online retailers. Established brands and stores can increase their return on investment by boosting their digital marketing efforts to attract new customers and increase the purchase frequency of existing ones. Traditional players, such as pharmacies and retailers, can leverage existing marketplaces and delivery platforms or establish their own virtual stores. Manufacturers, distributors, and healthcare providers may also want to consider exploring direct-to-consumer models. The current mode of drug acquisition for patients is undergoing disruption, making it an ideal time for companies to embark on digital transformation to establish a strong foothold in this evolving market.