Mexico is emerging as a significant product-sourcing market for the American region. Here, you can find the most reliable and high-quality suppliers. The high-quality craftsmanship and proximity to the United States bring a plethora of American and Canadian firms to Mexico.
Mexico's strategic location and trade agreements, like NAFTA, position it as the most suitable option for product sourcing. According to the research, The Mexican and U.S. Economies After Twenty Years of NAFTA, "NAFTA did foster greater U.S.-Mexican integration and helped transform Mexico into a major exporter of manufactured goods."
Let's discover all the 5 Reasons to Start Sourcing e-commerce products from Mexico.
Strategic Advantage And Proximity To The United States
Mexico's geographical location is a significant privilege in its economic growth. Mexico shares a border with the United States. If you are in the U.S. and you want to source e-commerce products, Mexico is the best option. Its proximity to the United States reduces transportation costs. It also helps efficient supply chain management.
The shared border is a blessing if you are working in the United States and sourcing products from Mexico. You can import your products even at the final hour. You don't need to worry about ocean freight. It also makes traveling more convenient for you.
This is a fact that it is crucial to visit your manufacturing firm more frequently. It helps to maintain the standards of your products. If you are sourcing products from Mexico, there are short travel times and minimal time zone differences. It makes it easy for you to keep rapport with the team through frequent visits.
On the other hand, if you opt for cross-border e-commerce manufacturing, ocean freight can be a means of transportation. It is more time-consuming and inconvenient for you.
A strong labor market for manufacturing _ with Low Labor Costs
The literacy rate of Mexico has reached 95.25% in 2023. People are more educated and skilled. From engineers to laborers, they are all well-trained and masters of their work. While the education rate has increased, they still need more opportunities to earn. The wages of employees are lower in Mexico than in the United States. According to statistics, the average earnings of Mexican manufacturing workers is just $4/hr.
Meanwhile, in the U.S., it is $22.45/hr. The story doesn't end here. Research also shows that the average manufacturing costs in Mexico are even lower than in China on a unit-cost basis. The business culture of Mexico truly depicts that you can get more competent labor in Mexico at low labor costs. There are many companies in Mexico.
Free Trade Agreements
Reduced tariffs and smoother trade encourage businesses to shift their sourcing focus to Mexico. Access to free trade is a significant advantage if you are also looking to source e-commerce products from Mexico. Mexico has 14 FTAs (Free Trade Agreements) with more than 50 countries worldwide. Here are the 5 of them:
- Mexico Free Trade Agreement; NAFTA (USMCA)
- Mexico Free Trade Agreement; Japan–Mexico
- Mexico Free Trade Agreement; Colombia and the Pacific Alliance
- Mexico Free Trade Agreement; Central America–Mexico
- Mexico Free Trade Agreement; E.U.–Mexico
After the establishment of NAFTA, product sourcing between Mexico and the U.S. has become more efficient. You can get your e-commerce products at your place without any overburdening tariff.
Reduce Lead Times And Shipping Costs
Mexico shares a border with the U.S. This is one of the 5 reasons to start sourcing e-commerce products from Mexico. This is the primary factor that makes shipping from Mexico cost savings.
Mexico's manufacturers provide reduced lead times. Here, the primary factor is its proximity to the United States. The manufacturers in Mexico send the inventory directly to the centers through trucks. It also reduces the shipping cost.
Usually, your supplier can simply load your inventory onto a truck. Afterward, it is sent directly to a fulfillment center across the border. Also, it avoids upper-limit problems and stockouts. You can easily find a supplier in Mexico and start your business.
Compared to Mexico, if you are sourcing products from anywhere in the world, you must pay heavy customs. Apart from that, it takes much more time.
We Are Here To Assist You
These are just 5 reasons to Start Sourcing e-commerce products from Mexico. The list is too long. Mexico is the most suitable for sourcing products. The geographical location, free trade agreements, and internal strategies make Mexico a perfect hub for manufacturing.
If you want to invest in Mexico but need help finding it, we are here to assist you. You are at the Right Platform For Sourcing Products From Mexico. Call us today to help you find reliable suppliers and manufacturers.
Sources:
- The Mexican and U.S. Economies After Twenty Years of NAFTA: https://www.tandfonline.com/doi/abs/10.2753/IJP0891-1916430201
