E-commerce in Mexico: an Expanding Engine for the Economy

E-commerce in Mexico has experienced sustained growth in recent years, establishing itself as an essential pillar of the national economy.

In 2023, e-commerce represented 6.4% of the Gross Domestic Product (GDP). Its value exceeded 2 trillion pesos and recorded an annual growth of 8% in real terms.

Factors driving growth

Various elements have contributed to the rise of e-commerce in the country. The COVID-19 pandemic acted as a catalyst, accelerating the adoption of online shopping due to health restrictions.

Additionally, the expansion of fintech and startups has facilitated more accessible and secure payment methods. Meanwhile, social media has become key platforms for product promotion and sales.

Emerging trends for 2025

Looking ahead, several trends are anticipated to shape the e-commerce landscape in Mexico:

• Artificial Intelligence (AI) and personalization: Companies will implement AI solutions to analyze consumer behavior and offer more personalized shopping experiences.
• Digital payments and cryptocurrencies: The adoption of digital payments will continue to increase. The use of cryptocurrencies will also grow, providing more diverse and secure options for consumers.
• Social commerce: Platforms like TikTok are integrating direct purchase functions, allowing users to acquire products without leaving the application.

New taxes threatening e-commerce

As of January 1, 2025, e-commerce in Mexico faces new challenges due to the implementation of taxes and tariffs that could affect its growth and competitiveness.

New import taxes

The Tax Administration Service (SAT) has established a 19% tariff for products imported from countries without trade agreements with Mexico, such as China. This measure directly impacts platforms like Shein and Temu, which offer competitively priced products.

For goods from United States and Canada, covered under the United States-Mexico-Canada Agreement (USMCA), a 17% tariff will be applied to products valued between 50 and 117 dollars.

These provisions aim to combat abusive practices and strengthen tax collection.

Impact on digital platforms and consumers

The new regulations also require e-commerce platforms to register with the Federal Taxpayer Registry (RFC) and comply with tax payments such as VAT and ISR. Additionally, they must issue invoices upon user request.

These obligations could increase companies' operating costs, impacting final prices for consumers. Services like Uber and Airbnb are also subject to these regulations.

Protection for the national industry

Additionally, a 35% tariffhas been implemented for imported textile products. The goal is to protect the Mexican textile industry and promote the consumption of national products.

This policy aims to create fair conditions for local companies against foreign competition.

Challenges and opportunities

Despite the growth, e-commerce in Mexico faces significant challenges.

Logistics and distribution in rural areas remain an area for improvement. Likewise, consumer trust in online transactions must be strengthened through more robust security measures.

However, these challenges present opportunities for companies that can offer innovative solutions adapted to the local market.

Economic outlook

Trade integration with the United States is crucial for the sector.

Recently, Mexico has intensified its efforts to avoid the imposition of 25% tariffs by the U.S. administration. If implemented, these tariffs would affect exports and cross-border e-commerce.

These negotiations aim to strengthen the digital economy and protect the trade flow between both countries.