It’s starting to get cold up here, so we’re ready to move to warmer climates. Conveniently enough, we’ve added the final piece of the Amazon North American trifecta: Amazon Mexico data is now on SmartScout! We’ve also added Spanish as a language available inside of SmartScout, and our customer service team is already staffed with fluent Spanish speakers.
For our regular subscribers who want to learn more about Mexico and how it can help grow your sales, skip to our “top things to know” section.
If you’re new to SmartScout, here’s a quick snippet about what we do and how that can help your Amazon business: SmartScout gives Amazon sellers a bird’s eye view of the entire Amazon marketplace. You can use our Categories, Subcategories, Brands, and Products tools to identify key markets and brands to invest in, our Traffic tools to improve advertising, and our Sellers tool to either see what your competition is up to, or offer your services to them!
If you want to learn more about how SmartScout can help you specifically, put your mouse over “Why SmartScout?” at the top of the page. Select what you do on Amazon, and we’ll be happy to explain how we can serve you.
The most important thing to know is that unlike much of the world, Amazon is not the dominating online marketplace. Depending on whose traffic or sales estimates you go by, the biggest ecommerce platform is Mercado Libre, an Argentinian company.
Part of the reason for Mercado Libre’s success is its Latin American background, and how their ancillary businesses have driven growth. In Latin America, only 55% of the population have bank accounts (versus 90% in countries like the USA). It was much lower before the pandemic, as low as 30% in some regions. Just as Amazon has used Prime memberships and AWS to establish a loyal customer base and product supplemental income, Mercado Libre has found great success with Mercado Pago, an app that turns cell phones into a bank account.
Amazon is fighting hard to take the crown, though. They just signed a partnership with Affirm, a company that specializes in installment plans, which constitute 60% of payment types across Latin America.
Regardless of who is on top, e-commerce in Mexico is expected to grow by 17% in 2022, so there’s plenty of room for new sellers to jump in. Sellers like you!
If you live in Latin America, expanding into Mexico should be a priority. There are few, if any, language or cultural barriers, one of the largest online markets in the region, and expected growth for years to come.
One concern for all sellers though, is relative market size. Estimates for sales were approximately $1.5 billion (USD) last year, according to ecommercedb.com. That puts it at perhaps 1/4th of Canada’s market size. We estimated that an American who starts selling in Canada could increase their revenues by 10-15%, meaning a jump into Mexico would mean only about 2-4% growth for an established seller.
Don’t forget that every transition to a new country will involve learning more about regulations, fees, and importing. If you’ve already moved into other countries before, this probably shouldn’t be a concern, but unless you’re already in Latin America, you should start elsewhere before looking at Mexico.
The best way to know if Mexico is a good fit for you, though, is to use SmartScout to look at the overall market. Check out top sellers and brands, look into subcategories that you know about selling in, and you’ll be able to know with just a few clicks if this market is right for you. If you’re not signed up already, use your trial today to find out today!