Internet businesses are growing and consolidating in the country, supported by consumers who are increasingly embracing this channel to carry out their purchases, especially in categories such as food delivery, medicines, beauty and personal care, fashion, subscription services, online banking and travel.
Worldwide, it is expected that in 2023 e-commerce will represent 21% of purchases. 73% of all purchases will be made through mobile devices, according to information from the eCommerce Institute and the Mexican Association of Online Sales (AMVO).
Latin America is the second region that has grown the most, with 22%, only behind Asia-Pacific. In the region, Mexico is the country that has grown the most in terms of electronic commerce, with 35%.
David Miller, CEO of Amazon Mexico, exposes the panorama of e-commerce in 2023 and the investments they make in payment accessibility.
AN: David, how do you see the e-commerce market for 2023?
It is an activity that has grown a lot and will continue to do so. In 2021, sales through this channel increased 27% compared to 2020. The size of the market in Mexico exceeds 400,000 million pesos. Last year, electronic commerce represented 11.3% of total retail sales in the country and continues to expand.
When someone buys something online and has a good experience, they come back. Young consumers are the most frequent, but in general people of all ages visit us. With the fast pace of life, this channel helps shoppers a lot, due to time savings and free delivery, among other reasons.
The growth of e-commerce has improved period after period and the trend is that each year this segment is larger. The last quarter is the most important of the year. According to some surveys, online purchases are expected to exceed traditional commerce.
Next year there are great challenges ahead, because the economy is in a difficult situation. However, an environment with these characteristics favors companies like Amazon, because it manages low prices. When incomes are limited, consumers look for where to buy products with better value.
AN: What challenges will this industry face?
The industry is getting bigger every day, because there are new investments and more participants, but the important thing is to improve the quality of the items and the delivery services.
Consumers are becoming more comfortable ordering different categories of products. At the beginning of e-commerce, they requested simple and easy-to-use goodslike books, but people are buying larger, larger-priced items like screens or exercise equipment.
One of the challenges in the sector is how to maintain good management when adding complex categories in cost and volume. The goal of e-commerce sites is to find the right balance between expanding their catalogs and a satisfying customer experience.
Another challenge is the diversification of payment methods, to increase the number of consumers. This line continues to be studied a lot to innovate and find solutions that give access to online purchases to the population that is not banked, because it is difficult to consume online, if you do not have a credit or debit card. Attending this area is not optional; it is an everyday task.
AN: What plans does Amazon have?
We will continue to invest in the accessibility of payments so that all consumers can buy online. For a year now, we have been perfecting the mechanism of cash transactions. Our orders can now be settled at Oxxo, Farmacias del Ahorro, 7-Eleven, Kiosko and Waldo’s, but we want to add other options. Additionally, we continue working with the banks to achieve more promotions of months without interest.
Other plans include improving our merchandise categories, offering lower prices, and expanding delivery points throughout the national territory. As long as we execute that formula consistently and better than everyone else, we will grow business. In Mexico we have 11 distribution centers and more will be built, depending on the dynamism.
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