January 11, 2021
Read 8 minutes
Opinions expressed by Businessman The contributors are their own.
2020 will be hailed as the “unique” year in history. While that year presented us with significant challenges in almost every aspect of our lives, it also tested our abilities and resilience to face adversity. For many, this year inspired us to take the next step. our business .
During 2020, small business owners and entrepreneurs all over Mexico were forced into a digital acceleration as more consumers started using digital channels to make their purchases and stay connected to the outside world. These hard times created a window for businesses To consider entering the digital world of all sizes To reap its benefits in a new and somewhat uncertain economy.
Globally, according to GoDaddy’s 2020 Global Entrepreneurship Survey, the epidemic led to increased interest in online sales among entrepreneurs; 24% of respondents have started or improved their digital marketing activity, and 17% have added an online store in response to the epidemic. In our country, online retail sales are expected to grow 31% compared to 2019, according to the industry report: E-commerce in Mexico by 2020 by BlackShip.
Mexican micro and small companies have been steeped in the process of adaptation and continuous learning to help them survive and sustain their businesses during this global epidemic. Although companies are expected to see an increase in digitization in 2021, this goes hand in hand with changes in consumer behavior.
Here are some trends small businesses should consider in 2021:
Digital push in progress
Although there has been significant progress in digitization in our country in recent years, 2020 has given a bell as we begin to make digital devices out of necessity. According to the Mexican Online Sales Association (AMVO), Good & 2020, the last great season of discounts on purchases in Mexico, Internet sales generated 36.1 billion pesos (an increase of 225% over the year) and 40.1 million transactions in online sales. Similarly, it was also recorded that about 7 out of 10 internet users made purchases during this campaign, and about 5 out of 10 buyers did so exclusively online. But perhaps most importantly, shoppers plan to buy more online in the coming years.
These figures may roughly reflect what has been experienced in recent months in Mexico, where the International Data Corporation (IDC) estimated e-commerce to grow by 60% at the end of this atypical year, with blacksip Will be 39.3%. In addition, 2 out of 10 companies expect electronic commerce to represent more than 30% of their total sales by 2021, as reflected in the report 4.0 COVID-19 Impact on Online Sales Mexico, and from industry reports Data: E-commerce in Mexico 2020 states that by 2024 e-commerce is expected to reach 55%.
As we have experienced throughout 2020, technology has changed the rules of the game and digital platforms will continue to hold importance in 2021. Therefore, it is highly recommended that micro and small businesses decide to join this digital wave to connect with their customers and look for new opportunities.
Omnichannel procurement process will be the new normal
Social Media or Website? Marketplace or your online store? As we have seen throughout the months of the epidemic, brands have opted for a ubiquitous strategy. This approach is about ensuring that your business can be available on multiple digital channels (relevant to you and your business). In the Mexican market we can cite examples in which their industry leaders have set the standard: Nike has opened its official store in Mercado Libre, which will allow them excellent visibility, but, of course, it has its own website. K continues to sell through the official, where you can personalize the shopping experience. The same happened with Miniso, which debuted in the Claro Shop Marketplace, but has its online store on its website.
Among the benefits of having an online store on your website is that you can link it to your company’s social network. With an integrated online tool, entrepreneurs can set up an online store and start selling their products easily and quickly.
Thanks to social media and marketplaces, small businesses can gain greater visibility and, by storing on their website, they can personalize the shopping experience for their customers.
Limitless payment methods
One of the main reasons people buy online today is due to the various payment methods available on digital platforms, so today, more than ever, it is necessary to offer multiple payment options. When shopping online, we may automatically think of using a credit or debit card; However, only 47% of people in Mexico have a bank account. For this reason, other options are necessary, such as the possibility of finalizing purchases with e-wallets and even cash deposits or bank transfers. In other words, your online store must be inclusive and allow multiple payment methods for all preferences and needs. An example of this would be the addition of Apple Pay or PayPal as payment methods for customer convenience.
Mobile device: king of e-commerce
As consumer confidence in online shopping increases, more purchases are made through mobile devices. Globally, it is expected that by 2021, 72.9% of total e-commerce sales will be done through a mobile device, where smartphones have the upper hand. Currently, 70.8% of Mexicans have Internet access, according to a study of media and device consumption among Mexican Internet users, and most of them connect via smartphones. It is important for Mexican entrepreneurs to consider this trend, even knowing that about 30% of online shoppers are likely to abandon shopping carts if they find that the website is not “mobile friendly”. Additionally, Google is starting to prioritize mobile-optimized websites even more in its search engine.
While the current economic situation may be difficult, Mexican entrepreneurs are resilient. Having an online store or website is a great start for a small business. They also need to consider how to give the best experience to their customers, and part of it is knowing where and how your potential customers shop. Currently, there are solutions on the market that provide the necessary online tools to help a micro or small business grow online. At GoDaddy, we are ready to help entrepreneurs and small business owners in Mexico achieve their goals this new year.