E-commerce logistic operations are one of the most important aspects of the e-commerce business process. This market is currently experiencing rapid growth due to changing consumer habits, busy lifestyles, and at the click of a button. That is why e-commerce logistics need to be analysed by every e-commerce business. Some crucial practises to follow for sustaining in this market are: demand planning, increasing the company’s visibility with an expanding logistic network, focusing on free shipping, and investing greatly in last mile services, as this is the first and only physical interaction between the customer and the company. Following these practises are proper management of returns, which helps to retain the customers, 3PL or third party logistics, and decentralising warehouses. In the process of decentralizing, the idea is to stock the product closer to different consumers in various locations rather than storing it in one central location from which the distribution process takes place. The market in Mexico is looking to optimise all of these activities to achieve proper flow in the functioning of e-logistics in the country. The country of Mexico is the fifth largest e-commerce market in terms of growth rate in North America. According to the research report titled, "Mexico E-commerce Logistics Market Research Report, 2027", published by Actual Market Research, the market in Mexico historically grew at an exceptional CAGR of 20.95% till the year of 2021 and after that seems to clock a minute decline in the future growth rate till 2027. The e-commerce logistics market in the country is facing many different obstacles which are not letting the market grow completely. The factors affecting the delivery time are the condition of the roads in the country, which delay the delivery time both in the urban and suburban areas; increased population density in the urban areas; and the low supply of infrastructure for warehouses, which forces them to move the infrastructure outside these urban locations and add to the delivery time. All of this, accompanied by the bottleneck created by the same-day delivery claims, has led to the declining growth rate of the market. On a positive note, the market also has some aspects that help in sustaining business in the country’s market. The first factors include higher investment from investors for decentralised warehousing in the urban areas to reach the consumer’s doorstep faster. Secondly, the shifting of consumers to online transactions from cash has proved to be a booster for the logistics market as handling cash is a nightmare for these companies. This is further fuelled by the increasing disposable income of the middle class in society.
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Download SampleThis e-commerce logistics market in Mexico provides three major different services in the segment, which are warehousing, transportation, and other services. The transportation services in the country take the majority of the market share, occupying around 70% of the total market share, with the warehousing segment coming in second due to the rise in demand for decentralised warehousing solutions in the urban areas of the country along with the sub-urban areas. For this reason, the segment seems to grow even in the future. According to the operational area segmentation, which has two segments: international operations and domestic operational areas, following the global trends, the country has the majority of the companies working in the domestic e-commerce logistics market? This is due to the untapped potential of the market, which is highly unconsolidated and needs proper management. This provides an opportunity for both domestic and international players to enter the country's domestic market. And lastly, the mode of transportation segment, which includes modes like road, rail, air, and sea, and out of which the country of Mexico heavily relies on the road transport mode, which seems to decline in the future with the issues of road quality and an increase in urban traffic jams. This segment is followed by the airways in terms of market share as they are the better alternative for transporting goods due to their high speed and even higher loading capacity of goods. The only reason this segment is not as large as the roadways is because it is economically more expensive and the last mile in the logistic market is almost always fulfilled by the means of road transport. COVID-19 impact Logistics firms, which are involved in the process of movement, storage, and flow of goods from the seller to the consumer, were very adversely affected by the pandemic. As it requires various processes, a high level of human coordination and intense management of the system gets affected. And during the pandemic, this coordination was broken off with the enforcement of lockdown and shutting down of production, resulting in a supply gap. Another effect of the pandemic which helped the market was the adoption of digitalization during this time and increasing demand through e-commerce platforms, which led to the growth of this market. Considered in this report • Geography: Mexico • Historic year: 2016 • Base year: 2021 • Estimated year: 2022 • Forecast year: 2027
Aspects covered in this report • Mexico E-Commerce Logistics market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By service type in the report: • Warehousing • Transportation • Other Service (Return, Inventory management) By operational area in the report: • International • Domestics
By transportation mode in the report: • Road • Rail • Air • Sea The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual reports of companies, and analyzing the government- generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have verified the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to e-commerce logistics industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.
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