Although electronic commerce (e-commerce) has increased exponentially since the pandemic began, many companies in Mexico, especially small and medium-sized ones (SMEs), encounter barriers and challenges to sell their products online.
For 37% of Mexican SMEs, the main obstacle is its own business modelaccording to the fifth Barometer: SME Manufacturers in the Consumer Industry, presented by GS1 Mexico and Psyma Latina.
The second great barrier that SMEs encounter is in the type of products they produceas they find it more difficult to sell it online, according to the response of 561 companies surveyed.
“For SMEs, especially those whose products are traditionally bought in supermarkets or stores, it can be a great challenge to devise and execute a successful online sales strategy.; However, this will allow you to increase your sales steadily, connect with your consumers and broaden your business vision”, commented René Yamada, manager of Strategic Planning and Operational Effectiveness of GS1 Mexico.
Other barriers are ignorance about e-commerce (20%), lack of investment in technology (12%), and concern about security and fraud prevention (8%).
The companies that participated in the study operate in the retail sector, specifically food and beverages, electronics, and health and beauty; These products are traditionally purchased on the sales floor, so they may encounter obstacles to successfully selling on ecommerce.
However, providers are aware of the importance of having an online presence. 6 out of 10 participants in the GS1 study consider it relevant to sell onlinemainly to expand its market, position its product and increase sales.
On the other hand, the companies that stopped selling online mentioned the following causes:
- Lack of consumer interest
- Maladministration
- They do not dominate the digital channel
- the pandemic
What they need to improve
According to SMEs, the elements that SMEs must strengthen in order to have a successful ecommerce strategy are:
- Logistics
- Payment method
- fraud prevention
- Legal
- performance marketing
- business strategies
- Customer service
- Omnichannel
- IT and Infrastructure
- Financing and investors
Quality, the strength of companies
The main success factors of Mexican SMEs are raw material (82%), product without defects (81%), packaging (64%), and logistics and distribution (64%). These answers demonstrate the importance that companies give to the quality of their product. However, they find it difficult to place it online.
“Undoubtedly, knowing and measuring what SMEs that provide retail and marketplaces experience will allow them to delineate better strategies that professionalize their business, increase their sales and strengthen the national economy,” said Simeon Pickers, CEO of Psyma Latina.
Among the SMEs that already sell online, 77% use Facebook, 76% their own website, 67% Instagram, 65% marketplaces, 64% WhatsApp, 33% own ecommerce platform, 31% Twitter and 27% TikTok.
Specifically in the use of marketplaces, small retail supplier manufacturers use, mainly, Mercado Libre (76%), Amazon (64%), Shopee (14%), Liverpool (14%) and Walmart (13%).
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