The continued growth of ecommerce in Mexico was one of the highlights of GELF LATAM 2019. Multiple GELF speakers spoke about how investments in cross-border ecommerce – and especially those focused on logistics into Mexico from US -based fulfillment operations – were paying solid dividends immediately.
At GELF LA 2020, the Linio team spoke to how their clients were thriving throughout LATAM and especially in Mexico. Linio is also seeing ecommerce growth in Colombia, which is perhaps the best kept secret in LATAM ecommerce today.
Impact and Aftermath of COVID-19: Mexico Ecommerce Sales Shift Dramatically to Pharmacy and Home
As the global ecommerce community deals with the present impact of COVID-19 – and plans for its aftermath – there are promising signs that ecommerce’s growth in Mexico and thoughout LATAM will continue.
According to Mexican publication Milenio Diario, MercadoLibre’s sales have gone parabolic. Mexico, like its U.S. neighbor to the north, has implemented social distancing guidelines for its citizens, disrupting normal retail economic activity. It just so happens that this country is one of MercadoLibre’s primary markets, along with Argentina and Brazil.
Just how hot are sales in Mexico? MercadoLibre reportedly provided Milenio with some numbers. Right now, pharmacy sales are up 114%, and home and laundry sales are up a whopping 403%.
These are incredible numbers, but it’s worth noting that MercadoLibre is used to robust growth in Mexico. In the fourth quarter of 2019, gross merchandise volume (GMV) in Mexico was up 53% year over year. That clearly shows consumers were already embracing MercadoLibre’s platform in Mexico at a rapid pace, though the pace did decelerate slightly from the 56% growth reported in the fourth quarter of 2018. But as people in Mexico are now encouraged to stay home, MercadoLibre’s growth is reaccelerating at a triple-digit pace in certain categories.
More info here about the reporting above from The Fool on how the COVID-19 quarantines may provide a lasting boost to ecommerce in Mexico as more shoppers embrace ecommerce.
Stay tuned as we update the state of ecommerce in Mexico and throughout LATAM markets in the weeks ahead.
Meanwhile, check out GELF’s new podcast, Global E-Commerce Tech Talks …
And please stay healthy!
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