E-commerce in Mexico a Magnet for Logistics Start-ups

E-commerce in Mexico grew by 81 percent due to an increase in online buyers, purchase frequency and ventures. As a result, Colombian-based logistics company Melonn has plans to target SMEs in Monterrey and Guadalajara in1Q22. 

With its three-step client logistics strategy, consisting in real-time inventory synchronization, storage services and same-day or next-day delivery to end consumers, Melonn entered the Mexican market in Mexico City during 3Q21. It currently services over 200 SMEs in Mexico and Colombia.

"We knew we had to be in Mexico, have a presence in its market and be an ally for e-commerce businesses," said Daniela Uribe, General Manager, Melonn.

However, due to the continuous e-commerce growth in the country, the company decided to expand its logistics services to Monterrey and Guadalajara, where it will offer innovative solutions to small and medium enterprises (SMEs) through an online sale increase of up to 400 percent. 

The company’s value proposition relies on four key benefits. First, following a 400 percent sale increase possibility through same-day or next-day delivery services, Melonn offers a core-focused comfort by fully taking over its clients’ logistics activities while concentrating on their core elements, such as products, consumers and selling activities.

The third benefit allows clients to increase the size of their potential market by selling via multiple platforms in various cities. Lastly, the company’s final value proposition services the opportunity to scale up its clients’ businesses with fast growth and demand-absorption without investment. 

The company’s logistics software solution promises businesses to offer a complete delivery experience to their end consumers through tracking technology with last-mile carriers such as Estafeta, Paqueteexpress and Redpack, increasing loyalty tendencies. 

"We also offer the end consumer the possibility to pay once the delivery has been completed, which helps generate confidence. It is a factor that increases sales greatly, in addition to being a fast and reliable service," said Andrés Archila, Operations Director, Melonn.  

With its expansion, Melonn has committed to be the gateway for South American businesses that also wish to enter the Mexican market.

However, some experts reflect on the environmental consequences that emerging logistics solutions are causing in an attempt to cover high delivery demands. They encourage restructuring these solutions to comply with eco-friendly options and better environmental practices.

“It seems that we face a paradox. In a way, we see the additional impact that the logistics acceleration is having on the environment; in addition, our activity is confirmed as a facilitator and promoter of economic activity and new technology-based marketing models […] it is essential to rethink distribution models and assume the necessary efforts to achieve a global “zero emissions” model,” wrote Ingo Babrikowski, CEO, Estafeta for MBN.