Although the confinement has managed to boost eCommerce in Mexico and growth of 60% is expected at the end of 2020 , there are still many ideological and technological barriers to overcome to continue with this development.
Important evolutions but there are eCommerce barriers in Mexico to tear down
Although it is true that in the country there have been great changes and evolutions in terms of digitization; As many companies rapidly adapted to the digital world and adopted teleworking as an essential part of their processes, many others are just in the process of evolution, as proposed by Ecomsur México, a leading company in full-commerce and omnichannel.
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In this sense, Ecomsur, citing figures from the National Chamber of Commerce (Canaco), highlights that in Querétaro alone , more than 300 entrepreneurs are training for electronic commerce.
“This year, although under pressure, many companies migrated to e-commerce, which shows the adaptability and resilience of the business sector in Mexico ; This is only the first achievement in a history that is constantly evolving and with great challenges at the national level, apart from the very specific challenges of each company, ” said Jorge Fernández-Gallardo, CEO of Ecomsur for Latin America North.
5 barriers to eCommerce in Mexico to overcome
Faced with this reality, the company highlights that there are currently 5 major eCommerce barriers in Mexico that must be faced and they mention what has to happen in order to overcome them. Here we share them.
1.- Internal mentality
The first barrier of eCommerce in Mexico is the resistance that some companies have to migrate to digital , even in times like today where it has become essential. Among the reasons they point out that it may be because they want to maintain absolute control of their data, be autonomous and not have to have third-party support.
In this case, they emphasize that the ideal is to lean on and get advice from other companies that do this successfully; those that perform at large scales and have the right expertise to help with digital transformation.
2.- Low bankarization
Another aspect is that beyond the businesses that have digital channels available, there is the problem of public access to pay. In this regard, they refer to the low possibilities of online shopping that people have when having to pay with credit cards or bank transfers in most cases; in Mexico only 36% of the population has a bank account.
Although there are solutions for making offline payments in convenience stores (Oxxo, 7Eleven, etc.), Ecomsur considers it necessary to generate better and more agile payment options to involve more companies and larger segments of the population in the daily use of eCommerce.
Due to the high demands that there are at the moment, a problem in logistics is becoming evident, because the large parcel companies are at their maximum and their logistics does not manage to meet the strong peaks. This is why solutions can be sought in response to trends such as omnichannel, which offers new ways of serving the "last mile" and thus avoid these problems. According to Ecomsur specialists, there is going to be a migration towards micro-deliveries, with motorized providers that are delivery drivers ; which will reduce costs and delivery times.
Regarding regulations, efforts have been made to control this market; but for the specialist in fullcommerce , new rules are always needed for eCommerce, which are friendly to the consumer and the retailer ; But they expect great advances in legal issues for online sales in the coming years.
The data theft , fraud and other security risks are the greatest fears for buyers and for sellers. According to Ecomsur, in 2019 Mexico was the country with the most cyber attacks in the world . For this reason, when entering eCommerce, it is recommended to do it in the hands of large platforms and service companies that protect your business as offered by Ecomsur Mexico.
Facing barriers and promoting eCommerce
There seem to be many barriers to overcome for electronic commerce to continue advancing steadily in the country; but according to Jorge Fernández-Gallardo “ facing these challenges, online sales will be extremely important within the private initiative. If Mexico continues to advance with the correct strategy, it could, in the medium term, approach a much more robust e-commerce , such as that of China or the United States ” .
They also warn that with current growth rates, Mexico could get closer to China, which is the world leader in electronic commerce . But to turn this into reality, more entrepreneurs have to join with new ideas and there has to be more willingness of companies to digitize.