COVID-19 has replaced the purchasing behavior of customers in Mexico, according to industry experts.
The largest e-commerce platforms in Mexico, WalMart, Amazon and MercadoLibre recorded user profits and profits in the 2020 quarter.
Mexico City Walmart (BMV: WALMEX. WALMART’s mexico unit said its sales rose 217% at the time of the quarter and now account for 4.5% of total sales in Mexico. Walmart is the largest store in Mexico.
“As social distance measures have become tighter, consumers have further adopted home collection and delivery, and demand for e-commerce has tripled,” said Ignacio Caride, WalMart’s head of e-commerce in Mexico City, at a convention. July 23.
During the last quarter, WalMart of Mexico City doubled its capacity at the last kilometer, streamlined its same-day delivery from retail outlets to less than 72 hours and hired more than 2,600 order preparers to meet demand, Caride said.
WalMart has also opened 3 distribution centers in Mexico City, Guadalajara and Monterrey, as well as two distribution/distribution centers in Mérida and Chihuahua City, in the more than 11 months.
Mexico also has one of the fastest developed markets for Amazon (Nasdaq: AMZN). From February to July, monthly traffic to the Mexican company (Amazon.com.mx) increased to 36%, from 38 million to 52 million visitors.
Amazon’s earnings in North America in the quarter of the moment rose to $55.4 billion, 43% more than in last year’s quarter. The United States, Canada and Mexico are part of the Company’s North American.
MercadoLibre (Nasdaq: MELI), one of Latin America’s largest e-commerce service providers, reported Monday that second-quarter net sales in Mexico were $125.9 million, with $64.4 million in the same quarter of 2019.
MercadoLibre’s largest market in Argentina is Brazil, which achieved $365 million in net revenue this quarter, up from $340 million last year.
MercadoLibre’s overall bills through its online platform Mercado Pago reached $11.2 billion, an increase of 72% year after year, while unmarried active users increased by 45% to $51.5 million.
“The pandemic has led to significant adjustments in customer behavior, which have resulted in a vital step in e-commerce penetration and online bills in Latin America,” said Pedro Arnt, Chief Financial Officer of MercadoLibre Inc.
E-commerce in Latin America is still in its infancy, with online grocery shopping accounting for about 4% of general retail sales in 2019, at 11% in the United States, according to COVID-19’s recent impact on online sales in Mexico through the Mexican Online Sales Association (AMVO).
From January to July, the number of exclusive visitors to Mexico’s e-commerce sites increased by 53%, according to AMVO.
About 55% of respondents examined said they prefer to shop online now because they don’t need to leave their homes because of the pandemic, and 48% also say they should avoid crowds in stores.
“Overall, the belief in safety in buying groceries online is higher compared to January, when 7 out of 10 shoppers now feel online, as well as 7 out of 10 are satisfied with their purchases,” according to the AMVO report.
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