Webinar: Selling in Mexico for Peak Season
In this webinar, Stefano and Cecilia delve into the advantages of cross-border selling in Mexico and the opportunity to become a part of the Coppel marketplace, perfectly timed for El Buen Fin.
Coppel stands as one of Mexico’s leading retail chains and online marketplaces, offering an extensive range of over 2,050 product categories, including home appliances, electronics, clothing, beauty, and toys. Its online marketplace attracts more than 650 million visitors annually, captivating customers through special promotions, advertisements, and campaigns.
nocnoc is the largest cross-border store in Latin America. They provide a seamless solution to facilitate cross-border e-commerce between global sellers and Latin American marketplaces. With nocnoc, any seller can embark on selling in Mexican marketplaces without the need for a legal entity or any upfront costs.
Liz: Hi everyone, welcome. I’m Liz Downing, a Senior Manager in the marketing department at Teikametriks, an ad optimization platform. Today, I’m joined by Stefano from Coppel and Maria from nocnoc. We’ll be sharing valuable insights about the highly advantageous Mexican marketplace, particularly during peak selling season.
Stefano: Thank you very much. It’s a pleasure to meet all of you. I’m Stefano, the Head of Marketplaces for Coppel. I’ll provide an overview of our company following this captivating slide featuring key statistics about Mexico’s e-commerce landscape. It’s a delight to join Maria and Liz in this webinar. Mexico’s e-commerce sector is experiencing remarkable growth, positioning itself as one of the fastest-growing markets globally. As illustrated, Mexico ranks fourth in online retail growth worldwide, signifying significant opportunities for businesses venturing into digital sales.
Mexico’s e-commerce market
Stefano: In 2022, Mexico’s e-commerce generated an impressive $128 billion, and for context, the exchange rate is approximately $1 to $20. This remarkable figure represents sales exclusively from digital channels, showcasing a substantial 23% growth compared to the previous year. Projections indicate an estimated 13.4% growth rate this year, surpassing $28 billion in sales, with a consistent year-over-year growth rate of 7.4%. Anticipated consumer participation is staggering, with 63 million individuals expected to make online purchases, resulting in over 12.6 billion visits to digital platforms. These numbers underscore the compelling opportunity for businesses to engage in Mexico’s digital landscape through platforms like nocnoc.
Stefano: Certainly. Coppel.com and the broader Coppel Group are Mexican enterprises with a rich history spanning 80 years in Mexico. Our operations extend to two countries: Mexico and Argentina. In the subsequent slides, we’ll delve into various aspects of the Coppel Group, including its business units and significant ventures under its umbrella.
Stefano: Coppel is renowned as the leader in home appliances, electronics, and furniture in Mexico. We offer an extensive range of products, spanning over 2,036 categories, available both online and offline. It’s worth noting that we are diligently expanding our digital presence, making it an exciting prospect for international sellers and merchants to participate in the global sales landscape.
In the upcoming slides, we’ll explore what makes our digital sales appealing to customers. We serve a vast number of Mexican consumers, a topic we’ll elaborate on shortly. Our product offerings are closely aligned with the burgeoning e-commerce trend, ensuring relevance and success in today’s evolving market.
To provide you with a snapshot of our company’s performance, in 2022, we achieved sales of $12.7 billion in general goods across various categories. Additionally, in Argentina, we recorded sales of $126 million in the preceding year.
Stay tuned as we continue to delve into the intricate details of Coppel’s operations and what makes us a compelling destination for sellers and merchants.
Coppel’s in numbers
Stefano: So the company basically has three main branches, if we can say it. We have a bank, we have a pension fund, and the retail stores. In the ecosystem of the physical and digital stores of Coppel, we have 143,000 employees, 185 distribution centers, and 24 warehouses to serve the entire country. So we have covered almost the entire country. We reach those remote customers who may not have the opportunity to visit one of our stores.
We have more than 1,700 stores in Mexico, so basically, Coppel is located wherever there’s a population of more than 50,000 people. Coppel also has 27 stores in Argentina and more than 9,000 vehicles in Mexico that transport our goods between the stores, and fulfillment distribution centers, and deliver the products to customers in various areas of the country. We have more than 1,200 bank branches and 2.5 million square meters in the entire country. So we have the largest footprint in Latin America in terms of stores and square meters. That’s something you can leverage once you join our business and our marketplace.
Stefano: We have 1.4 million square meters of storage space available in our distribution centers and fulfillment centers for all our customers. Some important data to note is that last year, we sold 212 million units of apparel and footwear, making us one of the largest cellphone retailers in Mexico. Additionally, we offer headlines on our website and in our stores. In 2023, we’re opening 112 new stores, adding to the 360 million people who visit our stores annually. This provides ample exposure to your products, especially since we have kiosks in our Mexican stores.
Furthermore, we had 685 million visits to Coppel.com last year, demonstrating the significant traffic opportunity for sellers who join our marketplace. Now, let’s move on to the next slide, Maria. Thank you. Here is some essential data that highlights the opportunity of joining our marketplace. We offer several benefits to our customers and sellers. Currently, we have 17 million customers with approved credit.I have revised the text to improve clarity and remove filler words. If you have any further requests or need additional revisions, please let me know.
Stefano: Since we are a department store, we offer in-store credit to our customers, making it easier for them to afford various types of goods we sell. This credit extends to both 1P and 3P products available on our website. This means that every seller who joins our marketplace has the opportunity to offer products with this credit, enriching the experience for our 17 million customers who already have pre-approved credit available to purchase a wide range of products.
Our website sees an impressive 350 million unique visitors. We primarily engage with our customers through three channels: our mobile app, our website, and our in-store kiosks. These channels are crucial, we have a dedicated team of sales associates in our stores. They guide customers who visit our physical stores to the kiosks, where they can explore our extended assortment of products. This assortment includes not only products from our sellers but also our own extended offerings.
In fact, we are the third-largest e-commerce platform in Mexico, especially in terms of web traffic, with 90 million digital customers. This means we have an extensive customer database, with customers continually browsing our products, engaging with our marketing efforts, and following us on various social networks like Facebook and Instagram. This active and engaged customer base provides ample opportunities for interaction and sales.
Coppel’s main product categories
Stefano: We engage with promotions on a daily basis. For customers looking to purchase items across various categories, please move to the next slide, Maria. Thank you. Here are some of the categories that Coppel offers, both online and offline. As you can see, we provide a wide variety to cater to the diverse needs of our customers. Our company’s purpose is to fulfill the needs of customers living in Mexico, visiting Mexico, or requiring products in these categories. We continually introduce new categories on an annual basis. This year alone, we launched more than 58 product lines and expanded our assortment by over 20,000 SKUs in various product lines. This doesn’t even account for the assortment brought in by local and international sellers.
Our products generally fall into three main categories: clothing, shoes, and durable goods. One critical point we always emphasize to our sellers is our highly efficient logistics network and competitive transportation costs for moving goods across Mexico. This is a valuable advantage that sellers can leverage. We have a substantial import team in various countries, which is available to support all our sellers and the operations of nocnoc in the country.
What’s El Buen Fin?
Stefano: Now, I’d like to introduce you to one of the biggest events in Mexico, known as “El Buen Fin.” It’s the largest retail event in Mexico and has been held annually since 2011. “El Buen Fin” takes place after the Mexican Revolution Day weekend and draws inspiration from the Black Friday events that occur in different countries during the same month. The primary purpose of this event is to boost the economy during the November period, and it has become a tradition over the past 13 years.
“El Buen Fin” is not limited to online sales; it encompasses both online and offline stores. This event offers significant potential for sellers to expand their sales through various channels. We invite all sellers to join our marketplace through nocnoc and take advantage of this national event, which reaches a wide population in Mexico.
Stefano: This is something we consistently emphasize to our sellers and partners. “El Buen Fin” is the biggest event of the year, as mentioned earlier. During its first execution in 2011, it generated sales of 39 million Mexican pesos with over 40,000 participants. This year, we expect those sales to reach 140 billion pesos, which is a significant increase from 134 billion pesos in 2022. Our expectations for the event are exceptionally high, and we encourage all of you to consider participating.
Cross-border sales during El Buen Fin
Regarding the cross-border business, it’s worth noting that 80% of our customers have been purchasing from international websites or buying international goods from local websites. This highlights the immense potential of cross-border trade. We strongly recommend international sellers to consider entering the Mexican marketplaces, especially by joining our marketplace through nocnoc.
Stefano: It’s a fantastic idea for this time of year. Our season kicks off in November and doesn’t slow down until January. We consider it the biggest opportunity of the year. If you want to establish a strong presence in the market and boost your sales in the Mexican market, reaching out to all the customers who are highly attuned to this period is essential.
One of the main drivers of customer purchases during this time is variety. Many items are not readily available in Mexico, presenting a significant opportunity for a diverse catalog to thrive. Importing products are another crucial aspect. Not everyone can travel or directly import products, making cross-border trade a substantial opportunity for customers to access international goods. Pricing is also of paramount importance in the Mexican market. We recommend that you maintain a competitive pricing strategy.
I believe this is my final slide. I’ll now pass it back to Maria. Once again, thank you for participating in this event, and we hope you consider joining nocnoc and all the marketplaces, particularly Coppel Marketplace, which partners with nocnoc. Thank you very much, Maria.
María Cecilia: Well, Stefano, thank you so much for introducing Coppel and for sharing those great insights about “El Buen Fin.” As you can see, “El Buen Fin” presents a massive opportunity for U.S. sellers to start selling in Mexico, particularly on Coppel, and boost their sales during the most profitable time of the year. Now, I’ll begin discussing the benefits of cross-border selling in Mexico and the key considerations for successful expansion.
María Cecilia: But before we delve into those topics, let me introduce you to nocnoc. We are the largest cross-border store in Latin America, facilitating retailers and brands in selling their products through nocnoc’s cross-border stores on major marketplaces. We have a cross-border store on Coppel, where we assist sellers in featuring their products and selling through Coppel via nocnoc. Our platform simplifies the process for sellers, as all they need to do is upload their products, and we handle the rest, helping them expand their reach to over 15 different marketplaces in countries such as Mexico, Brazil, Chile, Argentina, and Colombia.
Benefits of cross-border selling in Mexico
María Cecilia: Now, let’s explore the benefits of cross-border selling in Mexico during the peak season. Firstly, it allows you to diversify your sales. Relying solely on one market or one marketplace can expose you to risks like increased commissions, interest rates, competitive challenges, shifts in consumer habits, or changing trends. Expanding to different markets, like Mexico, mitigates such risks. As Stefano mentioned, Mexico is a market where consumers are accustomed to cross-border shopping, actively seeking products not readily available in their local market.
María Cecilia: In this sense, Mexico is an excellent market to offer your products and test their potential success. Here’s the second point: If you commence selling in Mexico during the peak season, it’s the ideal time to gauge the success of your products in the Mexican market. Consumers are actively seeking online deals and offers during this period. Marketplaces like Coppel invest heavily in marketing campaigns and advertising to attract customers to their stores. This presents the perfect opportunity to capitalize on these marketing incentives and showcase your products on major marketplaces. Additionally, if you initiate cross-border sales in Mexico during “El Buen Fin,” you’ll experience increased sales, as Stefano mentioned. “El Buen Fin” takes place a week before Black Friday, creating an additional revenue stream.
Ensuring your success in Mexico
María Cecilia: However, to ensure your success, you must consider several key factors. While various aspects can impact your success in Mexico, I’ll focus on four main ones. First and foremost is localization. You must ensure that your products are suitable for the Mexican market and do not encounter any import restrictions. It’s essential to verify that the products you sell are not subject to import restrictions in Mexico, considering factors like price, measurements, weight, and age appropriateness. For example, in Mexico, you cannot import toys intended for babies or young children, so you need to ensure compliance with regulations or market to an older age group. Your products should align with the market’s needs.
María Cecilia: You should evaluate whether your product titles and descriptions are accurately translated into Spanish and optimized. Sometimes, companies make the mistake of translating everything from English to Spanish without considering whether those translated keywords perform well on the marketplaces. It’s crucial to avoid literal translations and focus on optimizing your content for the Spanish-speaking audience. Some English keywords may outperform their Spanish counterparts.
María Cecilia: To illustrate this further, let’s consider an example. If you sell smartwatches, you might find that the keyword “smartwatch” performs better than its Spanish translation, “reloj digital.” This is a crucial consideration because many Mexican consumers also search for products in English. So, you need to pay attention to these nuances. Moving on to the second point, diversification is key. You should ask yourself, “Which marketplaces generate the highest profits during peak season?”. While expanding your business to all possible marketplaces is a sound strategy, it’s essential to identify the most promising ones. For instance, some sellers may already be on Amazon US and are thinking about expanding to Amazon Mexico. However, this might not always be the best choice. It’s crucial to carefully evaluate your options and recognize the potential of marketplaces like Coppel. That’s why we emphasize this example.
Next, let’s discuss customer satisfaction. Ensuring customer support in Mexico is vital, and it’s not just about offering support in Spanish. You also need to provide support during local business hours. Mexican consumers expect fast and responsive assistance. If you fall short in delivering excellent customer support, it can negatively impact your reputation.
María Cecilia: You also need to ensure that you’re capable of providing customer support in Spanish and responding promptly despite the time zone difference. If you follow these practices correctly, it will help you build a strong reputation.
Now, let’s talk about pricing and marketing strategies. During El Buen Fin, it’s an ideal time of the year to run promotions and lower your prices. However, if you’re introducing a new product, you must carefully consider the pricing strategy. It’s possible that you might be offering a product with little to no competition in Mexico, allowing you to set higher prices. That’s why thorough market research is crucial. Analyze your competitors’ prices and determine the best pricing strategy for each marketplace.
Moreover, your marketing campaigns should be tailored and optimized for Mexico and the specific marketplace where you’re selling. All these points are essential to consider. Sometimes, you might need the assistance of a local partner who can help you identify the best products, set competitive prices, and execute effective marketing campaigns.
El Buen Fin case study
María Cecilia: I will talk about our success and share a short case study on how we assisted sellers during “El Buen Fin” last year. We started selling on Coppel, and as soon as we had our cross-border store, we helped other sellers start selling on the Coppel Marketplace in Mexico. Initially, we analyzed their listings, provided translations, and optimized their product descriptions. We helped them identify the best keywords and offered discounts on specific products. We enrolled over 50 different sellers to start selling through “El Buen Fin.” Thanks to these actions, we achieved a 350% growth in sales compared to a regular month, showcasing the significant impact you can have during “El Buen Fin.”
From our experience, some of the most successful categories were toys and games, electronics, beauty, kitchen, and home appliances. These are cross-border sales categories, and we identified substantial growth opportunities in them. Average ticket prices ranging from $48 to $70, depending on the category.
Before moving on, it’s worth mentioning that we ensure sellers’ products on Coppel are optimized and visible. We feature products on the homepage, providing valuable visibility.
Why sell through nocnoc?
Now, let’s address the question: Why choose nocnoc to sell in Mexico instead of expanding to Mexican marketplaces directly? Firstly, we offer a frictionless solution. You don’t need a legal entity in Mexico. Simply send orders to your U.S.-based warehouse, and we take care of the rest. We handle last-mile deliveries, cancellations, returns, and provide customer support in Spanish. We optimize your listings, manage marketing campaigns, and offer fulfillment services in Mexico. And we also ensure you get paid, even if there are cancellations or uncertainties.
This comprehensive approach provides an end-to-end solution for sellers to expand their sales across five countries and more than 15 marketplaces, ensuring successful results.
Moving on, we have our own seller center, where sellers can manage their inventory, orders, sales, and payments easily. Our team can assist when needed, but the platform is user-friendly. Once you sign up with nocnoc and upload your products, they are immediately published on all marketplaces.
3 easy steps to get started
There are three simple steps to get started with nocnoc: open your account, upload your products, and start selling to more than 485 million consumers across multiple marketplaces.
We also work closely with marketplaces to leverage promotional opportunities for our sellers, including discounts, offers, and featured product placements.
In summary, nocnoc provides a seamless solution for sellers to enter the Mexican market and beyond, offering comprehensive support, promotional opportunities, and a user-friendly platform to expand sales successfully.
If you have any further questions or need assistance, please feel free to reach out.
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