Mexico has limiting monetary conditions. In such a situation, e-commerce, which is relatively new to the region, has the potential to increase growth. Market experts predict that the revenue generated from e-commerce will grow nearly a quarter by the end of the decade. E-commerce has been seeing steady growth in Mexico and is expected to climb to $14.88 million in annual sales by 2021.

At present, only 2% of the retail sales being done annually represent online shopping. Thus, the industry remains largely untapped, providing a big opportunity for traders. The present number of 37.9 million shoppers online is expected to increase to 55.3 million by the year 2020.

Another reason for this growth prediction in e-commerce is evolving consumer behavior. There has been an increase in the consuming power among Mexicans over the past decade. However, the busy work style has left them pressed for time. With conveniences such as saving time and finding better deals online, many brick and mortar shops will have new challenges to face.

Customer service is becoming the main deciding factor for shopping now. Consumers today are more educated and seek a better rapport with their brand or business. Mexican consumers remain loyal to their brands. However, the global downturn of 2008 has changed this trend considerably. More and more consumers are turning towards low-cost brands and developing loyalty to them. Consumers who opted for low-cost brands have stated that these brands outdid their expectations. They are more than happy to continue with the new economical brands.

Having a variety of options can definitely test consumer loyalty. Throwing in e-commerce options, especially from major retailers, can definitely make a dent in local sales.

But why has e-commerce not really taken off in Mexico?
1) Mexico does not have an "internet culture" yet.  Only about 20% of the population has regular access to the internet, and even fewer have it in their homes.
2) Credit cards are not that common (though this is changing).  Many Mexicans still don't even have bank accounts since they live from paycheck to paycheck and get paid in cash.
3) Online/Credit card payments can be tracked.  Only about 30% of Mexicans are said to pay taxes so the fewer records, the better.  And if you want a "factura" from a website it gets even more complicated to tie into your factura system, which as of this year has to be digital.
4) Many people do not trust buying things online yet.
5) Merchant accounts to accept credit cards online are difficult to get and don't work very well.

United States, Canada, United Kingdom and Australia are the most online engaged shoppers' countries actually, but what is a better way for the online seller in Mexico to reduce the risk without the infrastructure to these countries?

Here comes CJ Dropship. New entrepreneurs can start their own e-commerce business easily by drop shipping in Mexico. Dropshipping is a low-risk e-commerce model where the manufacturer carries the inventory and ships packages out to your customer for you. It’s the most affordable way to start your first online store. You only buy products when customers buy them from your store. You don’t need to pay expensive shipping costs to ship to customers all over the world. With CJ dropshipping, you can even add products to your store and process orders in only one click. Mexico dropshipping is a great way for Mexicans to become entrepreneurs and experience a life of freedom.

1. No Setup Fee, No Monthly Fee, No Storage Fee, No Minimum Order
2. CJ APP is easy to use for hundreds of thousand products posting, order processing and free
3. US warehouse inventory and shipping, another faster shipping than ePacket
4. Sourcing any products for your drop shipping business and free
5. 7*24 online support with different language
6. Professional products video and images supply
7. Quality control and brand building for you
8. Price normally lower than Aliexpress and eBay vendors
9. 1-2 days processing if products stocked in the warehouse
10. Real-time hot selling products updating

The best part is that YOU DON'T HAVE TO INVEST ON INVENTORY!

In a word, you just have to pick a product you like, authorize your online store to us, then we will fulfill everything for you.

Obviously dropshipping to Mexico is a challenge, yet still, so many people are drop-shipping to Mexico because the market in Mexico is massive. Interested in jumping into a growing industry? Come and join us！