eCommerce: The challenge and salvation of companies

Friday, June 26, 2020

In Mexico, the adoption of eCommerce is an increasing curve full of learning and challenges for many companies; this is not exclusive of the current health crisis, but promises to remain and expand borders.

Confinement, accessibility, and immediacy have resulted in a boom in online shopping; where the digitization of processes and new actions have pushed e-commerce to be one of the clearest business enablers. The IDC consultancy estimates that by the end of 2020, eCommerce in Mexico will grow 60%, which represents double of the growth in contrast to that obtained between 2018 and 2019, according to the Mexican Internet Association.

The perfect example of how eCommerce has become relevant during the buying process experience, is Mercado Libre. Since its founder and CEO Marcos Galperin created the site back in 1999; his team saw over 20 years of growth and transformation; successfully growing their initial Internet auction site into Latin America’s largest online eCommerce platform with presence in Argentina, Brazil, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, Mexico, Panama, Peru, Uruguay and Venezuela; proving to be an uniform system able to handle the needs of all markets and to scale across borders. Aiming to cover its users’ needs, Mercado Pago was created, resulting in a more efficient tool to facilitate transactions on the Mercado Libre marketplace by providing a mechanism that allowed users to securely, easily, and quickly send and receive payments online; successfully achieving to meet the distinctive cultural and geographic challenges of operating an online trading platform in Latin America.

Currently, in Mexico only 10% of businesses operate digitally and of those that do, 80% do not exceed two years of life. However, the contingency has immersed companies in a process of adaptation, which is why entities such as the Organization of American States (OAS), the Mexican Association of Online Sales (AMVO) and companies like eBay or Google have launched initiatives to help more companies digitize their business process. Besides, the OAS created the program, seeking to digitize 100,000 Mexican startups in 2020, relying on the Ministry of Economy to increase the number of businesses in the digital world.

According to Richard Trinder, director of solutions for SMEs at Google Mexico, approximately 50% of SMEs did not have a digital presence prior to the contingency. However, if one thing is certain, it is that the process of transition to digital platforms will be a new step for the growth and internationalization of micro, small and medium-sized companies.

News made easy.

Source: America Retail and Standford Business.