If you’re an Amazon seller thinking about jumping into the international market, then you should look at Amazon Mexico. It’s not too far away, it provides a lot of growing opportunities to expand south of the border, and you won’t have to change your whole business structure.
Let’s discover how to sell on Amazon México, what are some of the limitations you’ll encounter, and how you can know if it is a space you should dive into.
Does Amazon Ship to Mexico?
First things first: yes, Amazon sellers can sell in México. The retail giant’s entry into Mexico started back in 2015, as part of its broader strategy to tap into emerging markets and expand its customer base.
Even when there were other strong local competitors such as Mercado Libre, Amazon recognized the potential of the Mexican market due to its large population and decided to give it a go.
Here are some of the key benefits you’ll earn after you learn how to sell on Amazon Mexico:
- Amazon Mexico offers a diverse selection of products across various categories, including electronics, clothing, home goods, books, and more. Customers can find both domestic and international brands, providing them with a comprehensive shopping experience.
- Amazon Mexico offers Prime services in Mexico since 2017. That said, it only offers on-day and two-day shipping in select locations, such as Mexico city. And there are other considerations to explore before starting your global selling journey.
- Mexico boasts a population of over 126 million people, making it a sizable market with significant potential for growth. By becoming an Amazon international seller, US sellers can tap into this expanding consumer base and reach a wider audience.
- Seller competition is relatively lower, compared to the US marketplace. This presents an opportunity for new sellers to gain a foothold in a less saturated market, and to establish themselves as leaders in their niche.
- Amazon offers FBA services in Mexico. Foreign sellers can store their stock in Amazon’s warehouses and benefit from their efficient shipping and customer service infrastructure. This can streamline operations and improve the overall customer experience.
- US sellers may enjoy favorable exchange rates when repatriating their earnings from sales in Mexico. This can result in higher profit margins compared to domestic sales.
Selling on Amazon Mexico | The Setbacks
Selling on Amazon Mexico can open up new opportunities for US sellers looking to expand their reach. However, like any business venture, there are both advantages and disadvantages to consider before diving in.
The language barrier
Even if your product listings are translated, it’s never 100% accurate. And that only works if shoppers know how to translate a webpage or are willing to set that up.
If customers can’t fully understand your listing, they’re less likely to trust it. And customer trust is vital for online sales.If you can’t provide native support for inquiries, shoppers may be wary of buying from you.
Sellers must also provide users with shipping updates and support for issues in their native tongue. Try to create the best possible experience for your shoppers, regardless of language. A barrier to communication is a barrier to sales.
Culture
While English is widely spoken in Mexico, language and cultural differences can still present barriers to communication and understanding. US sellers may need to invest time and resources in localizing their product listings and customer support to cater to Mexican consumers effectively.
Language aside, there are other cultural preferences that you have to understand, accept and cater to if you want to succeed in an international market. This goes for any international expansion, not just Amazon in Mexico. You need to do some research in that market specifically.
Selling Cost
Expect higher international fees when fulfilling orders, as opposed to selling locally through Amazon Mexico. Amazon does not recommend USPS because they coordinate with Correos de Mexico, which does not have a good reputation for making deliveries on time.
The obvious longer shipping times for international orders can also mean higher costs for you in terms of reviews, feedback scores, and your general performance ratings. Customers will not want to deal with the hassles if they can buy the same thing on Amazon in Mexico.
International orders also entail currency conversion, duties, taxes and other fees. You need to know exactly how much this will cost you and factor that into your pricing. This is important for both your margins and the likelihood that shoppers will go for your higher prices.
Logistics
Selling internationally comes with its own set of logistical challenges, including shipping, customs clearance, and local regulations. US sellers need to familiarize themselves with these requirements and may encounter delays or additional costs associated with international shipping.
Tariffs and Duties
Import tariffs and duties imposed by the Mexican government can increase the cost of imported goods, potentially reducing the competitiveness of US products in the Mexican market. Sellers should factor these additional expenses into their pricing strategy to avoid pricing themselves out of the market.
Payment Processing
US sellers may encounter challenges with payment processing and currency conversion when selling on Amazon Mexico. It’s important to research and understand the payment options available and any associated fees or even income tax considerations.
How to Sell on Amazon Mexico
Expanding your business to sell on Amazon in Mexico follows a similar process as entering the Canadian market. For starters, you’ll need a North American Unified Account.
If you’re a new seller, it’s worth checking if you’ve been automatically registered for this expansion.
You can verify this by checking your language switcher; if you see options for Canada and/or Mexico, you’re likely already registered.
Professional accounts established in Canada automatically gain access to sell on Amazon in Mexico. However, if you don’t see these options, don’t worry; applying for access isn’t complicated. Here’s a breakdown of the steps involved:
Check Your Account Health
Before proceeding, ensure that your Amazon account is in good standing. This step is crucial, as it establishes your eligibility to sell in Mexico. If you’re unsure, you can reach out to Amazon Seller Support to confirm and seek approval.
Not that if you’ve registered your brand before obtaining a unified account, you won’t automatically gain approval for selling in Canada and Mexico. In this case, you’ll need to apply for access individually.
Prepare Your Inventory
Align your inventory with Amazon’s requirements. This involves ensuring that your Stock Keeping Units (SKUs) adhere to global standards, enabling smooth transactions across borders.
Final Thoughts
If you’re not discouraged by the above considerations, then you can experiment with shipping to Mexico. If you’re not getting the volume you expected or if you are sure that you want to go full bast into that market, then it’s time to get an account set up.
Shipping internationally might not be the best idea right away. It could be a smart move for testing the expansion waters in Mexico, however. Start small, with a few products, to see how they do in the real Mexican market. Once you see potential, you can go all in and see if it pays off.
By following these steps diligently, you can successfully learn how to sell on Amazon Mexico. And with constant work, you’ll establish your presence in the region, expanding your reach and opportunities for growth.
Authors
Antonella Fleitas is a freelance content writer from Argentina. Antonella worked with many projects to create fact-based, evergreen content about science, language learning, and culture. Her main goal is to build a strong content foundation for her clients, based on meaningful stories that people can learn from.
Julia Valdez is a professional teacher and long-time lover of the art of words on paper and the stage. She has an entrepreneurial heart and spends most of her time doing marketing and management, freelance content writing, volunteer work, and sharing lots of laughs over little crazy things.
