Today is May 5th. Also known as Cinco de Mayo.
In the US, Cinco de Mayo has taken on a broader cultural significance and is often used as an opportunity to celebrate Mexican culture and heritage. The holiday has become an occasion for festivals, parades, and parties that feature traditional Mexican food, music, and dance.
One reason for the popularity of Cinco de Mayo in the United States is that it can also be attributed to its commercialization, as businesses across the US have capitalized on the holiday to promote sales of Mexican-themed food, beverages, and merchandise. Overall, Cinco de Mayo has become a symbol of Mexican culture and a celebration of diversity in the United States.
It got us thinking about Mexico and the size of their economy and ecommerce. As of 2021, ecommerce in Mexico has experienced a significant growth rate in recent years, with a market value of approximately $25.6 billion dollars. This represents an increase of 81% compared to 2019, according to the Mexican Internet Association (AMIPCI).
Like the US and most regions, the pandemic accelerated the growth of ecommerce in Mexico, as consumers were forced to stay at home and shop online instead of in-person. Additionally, the increasing adoption of mobile devices and internet connectivity, combined with the availability of more online payment options, have contributed to the growth of ecommerce in the country.
In terms of product categories, electronics, clothing, and household items are the most commonly purchased items online in Mexico. However, there is still significant room for growth in other categories, such as groceries, which is a relatively untapped market in the country.
There is no readily available information on the exact amount of returns across all commerce in Mexico. However, according to a report by AMVO (Asociación Mexicana de Venta Online), around 22% of online purchases in Mexico are returned.
The reasons for returns in Mexico include issues with the product’s quality, incorrect sizing or color, and issues with delivery, among others. Additionally, some online retailers in Mexico have liberal return policies, which may encourage customers to return items more frequently.
It is worth noting that the high rate of returns can be a significant challenge for ecommerce retailers, as it can result in increased operational costs and negatively impact their profitability. As such, many online retailers in Mexico are investing in strategies to reduce returns, such as improving product descriptions and sizing information, offering more accurate images, and providing better customer support.
Have fun today however you’re celebrating!
Yours Truly,
The Instant Refund Expert™
The Refunds Blog 