Amazon Flows Its Way Through Mexico


Amazon has now launched a full service in Mexico. At the end of the last month it went from offering eBooks on a localised website, to making its almost full product range available.

Pundits agree that Amazon’s determined move into this market is being driven by the country’s enthusiastic welcome of e-Commerce. Some experts regard it as the India of the region, a rapidly growing market which is embracing the latest technology and digital shopping.

The problem with Mexico for some e-Commerce companies is that it has been in the shadow of its larger neighbour, Brazil, for many years and has been overlooked by many.

But now the tables have been turned. As Brazil suffers from a struggling economy, Mexico is stepping into the limelight and grabbing the headlines. Not only is the economy growing, but it’s people are taking to the idea of e-Commerce with gusto. Mexico is the region’s second largest economy and because of its less heavy administrative infrastructure, is making Brazil look slow-moving and cumbersome. Therefore, Mexico is quickly becoming a key market for many US and European companies.

Last year, top brands such as Home Depot, Lowes, Orange and Zara all decided to introduce e-Commerce platforms in Mexico.

Latest figures suggest that by 2019, Mexico’s market will have reached a value of $7 billion.

What’s more, Mexico is following the classic e-Commerce pattern which involves four stages. First, the internet is used for email and connecting via social networks; then comes travel and online banking; followed by consumer technology products; and, finally groceries, clothing and other main category fast-moving goods.

What excites people about the Mexican e-Commerce market is not only the growth, but also its dynamic nature. This is down to the fact that there are currently no dominant players which have been around for years. Newcomers are constantly disrupting the market and adding a sense of frontier market.

Which retailer comes out on top, if indeed that happens, remains to be seen, but Amazon’s entrance alongside some of the bigger names who are already operating, will certainly add to an exciting mix and benefit the Mexican consumer.

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Reference: Forrester