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2020 is said to be a “unique” year in history. While the year that has just ended presented us with great challenges in almost all areas of our lives, it also tested our abilities and our resilience in the face of adversity. For many, this year gave us the motivation to take the next step our business.
In 2020, small business owners and entrepreneurs across Mexico were forced to experience a digital acceleration as more consumers turned to digital channels to make their purchases and stay connected with the outside world. These troubled times have created a window for businessesPeople of all sizes will consider entering the digital world reaping its advantages in a new and somewhat uncertain economy.
According to GoDaddy’s Global ship Survey 2020, entrepreneurial interest in online sales has grown due to the pandemic worldwide. 24% of respondents started or improved their digital marketing activities and 17% added an online store in response to the pandemic. In our country, according to Industry Report: Ecommerce in Mexico 2020 by BlackSip, online retail sales are expected to increase 31% compared to 2019.
Mexican micro and small businesses are in a process of adaptation and constant learning to survive and keep doing business during this global pandemic. Although increasing digitalization of companies is expected in 2021, this will be accompanied by changes in consumer behavior.
Here are some trends small businesses should consider in 2021:
The digital push continues
Although our country has made significant advances in digitization in recent years, the bell has risen in 2020 as we begin to introduce digital tools out of necessity. According to the Mexican Online Sales Association (AMVO), Good End 2020, the last big season of discounts on purchases in Mexico, hit Internet sales past 36.1 billion pesos (an increase of 225% year over year) and 40.1 Millions of transactions in online sales. Similarly, it was also found that almost 7 in 10 internet users made purchases during this campaign, and around 5 in 10 shoppers made purchases exclusively online. But perhaps most importantly, 54% of shoppers plan to buy more online in the years to come.
These numbers can largely reflect what has been witnessing in Mexico over the past few months, when the International Data Corporation (IDC) forecast that e-commerce would grow 60% by the end of this atypical year, with a penetration of 39.3 %, so BlackSip. Additionally, 2 in 10 companies expect e-commerce to account for more than 30% of their total revenue by 2021, which is reflected in report 4.0 COVID-19 Impact on Online Sales in Mexico and data from the industry report: The e-Commerce in Mexico 2020 shows that e-commerce is expected to reach 55% market penetration by 2024.
As we learned throughout 2020, technology has changed the rules of the game and the importance of digital platforms will continue in 2021. Hence, micro and small businesses are highly recommended to join this digital wave to keep connecting with your customers and looking for new opportunities.
The omnichannel buying process will be the new normal
Social media or website? Marketplace or your own online shop? As we’ve seen in the months of the pandemic, brands have adopted an omnichannel strategy. This approach is about ensuring that your business is available on multiple digital channels (as relevant to you and your business). In the Mexican market we can give examples in which the industry leaders are setting standards: Nike has opened its official store in Mercado Libre, which gives them excellent visibility, but of course continues to sell through its official website, where you can personalize the shopping experience. The same thing happened with Miniso, which started on the Claro Shop Marketplace but has its online shop on its website.
One of the advantages of an online shop on your own website is that you can link it to your company’s social networks. With an integrated online tool, entrepreneurs can set up an online shop and sell their products quickly and easily.
Thanks to social media and marketplaces, small businesses can gain more visibility and personalize the shopping experience for their customers through a store on their website.
Limitless payment methods
One of the main reasons people buy online today is because of the different payment methods that are available on digital platforms. Therefore, it is now more important than ever to offer multiple payment options. When shopping online, we may automatically think of using a credit or debit card. However, only 47% of Mexicans have a bank account. Because of this, other options are essential, such as B. e-wallets and even the option to complete the purchase with cash deposits or bank transfers. In other words, your online store should be inclusive and allow multiple payment methods for all tastes and needs. An example of this would be adding Apple Pay or PayPal as a payment method for the customer.
Mobile devices: the kings of e-commerce
As consumer confidence in online purchases increases, more purchases are made on mobile devices. Globally, it is expected that by 2021 72.9% of total e-commerce sales will be generated via a mobile device where smartphones have the upper hand. Currently, 70.8% of Mexicans have internet access, most of whom are connected via a smartphone, according to the study of media and device consumption among Mexican internet users. It is important for Mexican entrepreneurs to keep this trend in mind. This is even more true as they know that around 30% of online shoppers are likely to exit the shopping cart if they discover that the website is not “mobile friendly”. In addition, Google is starting to prioritize mobile-optimized websites even higher in its search engines.
While the current economic climate can be difficult, Mexican entrepreneurs are resilient. An online shop or website for a small business is a good place to start. They also need to think about how to provide the best experience for their customers. This also includes knowing where and how your potential customers are shopping. There are currently solutions in the market that provide the online tools necessary for a micro or small business to grow online. At GoDaddy, we are ready to help Mexico entrepreneurs and small business owners achieve their goals this New Year.