Main logistical challenge of e-commerce in Mexico
Real Estate Market | November 24, 2022 |

The end of the year is one of the seasons where users make more purchases, and e-commerce represents 11.3% of total retail sales, according to the Mexican Association of Online Sales (AMVO). It is especially in the part of the last mile, where companies work at forced marches to be prepared before the competition.

The purchase via the Internet goes through different stages, in which an important strategic effort is made, which starts from the moment the user makes the purchase, until he himself receives it at his home. At the same time, consumers expect deliveries to be faster and faster, so e-commerce players must continue to increase operations close to the core of urban areas.

Recent trends in e-commerce have made the effort to locate last-mile facilities a challenge and that is where the area of greatest opportunity in e-commerce is located, representing 28% of the total cost of delivery, according to with the study 'Distribution Centers (Cedis), the main logistics challenge for e-commerce in Mexico' prepared by Cushman & Wakefield.

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Large e-commerce retailers are currently willing to bear the high costs of this stage to build their infrastructure and control market share. However, there are several obstacles faced by urban logistics and replenishment locations.

The most important obstacles are: finding an existing building with adequate functionality or a site to remodel with adequate potential and that meets the requirements of the area, such as population density and good connectivity.

Regarding the design of the building, these Cedis generally do not require many platforms or significant headroom. Among the key requirements are ample parking areas for the delivery crew, a large area for vehicle staging and loading.

In the next three years, profits could potentially decline by 26% according to an Onfleet study, unless the current state of last-mile delivery is optimized. Given this scenario, it is essential to find new ways to improve efficiency and absorb the costs that are diminishing profit margins.

Also, as more customers enter the e-commerce ecosystem, the pressure to offer efficient last-mile facilities will continue to grow. “Successful delivery of these projects requires a trained team, who can quickly assess potential properties prior to site commitment,” the document stated.

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Although it seems simple, to achieve the delivery of an order correctly and efficiently it is key to comply with different areas: inventory management, merchandise transportation, route planning, process automation, etc., considering that the buyer expects deliveries are free and fast.

Offering customers a pleasant shopping experience in e-commerce implies improving the user experience on the platforms, always having items available and, in a first level of importance, setbacks that may affect delivery time, since it is crucial that any user decides with which company they spend their money.

In Solili you can consult industrial warehouses available in Mexico City and Guadalajara

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