17 part 1: Unlocking e-Commerce Growth in Mexico – Logistics, Compliance & Innovation

Jason Rowland: 00:00:00

Mexico is a really dynamic market right now. It's growing and if I had told you like before we started this today that.

Hey Nick, did you know that the country with the number one most populated city is not currently on the top 10 of market share for E commerce, you probably wouldn't think that this is.

Voiceover: 00:00:18

Outside the box with Ascendia usa, a podcast educating US based brands, marketplaces and e tailers on international shipping topics and how they can expand their global e commerce footprint.

Nick Agnetti: 00:00:31

Hey everybody, welcome back to Between Two Ferns. This is Nick Agnetti. Got our other host Jason Rowland with it. I'm just kidding.

It's outside the box with Asendia USA podcast coming to for a special edition today to talk a little bit about more specifically our Mexico network that we've developed along with our facility and really how that impacts and improves on these Mexico deliveries that we're really focused on. Has a huge growth market in the E commerce logistics space. So Jason, how's it going today?

Jason Rowland: 00:01:02

Pretty wet man. I'm glad that hot weather is past us now.

We're back to normal temperatures in the northeast and hopefully looking towards a nice summer here without 100 degree temperatures. So not bad.

Nick Agnetti: 00:01:12

Well, you said it out loud which means now the opposite is going to happen. So thank you for that.

Okay so, so like I said, well, it's going to be a little short and sweet today but hopefully very informative and again for the viewers and listeners out there, you know, our goal is to really just help to educate you in the E commerce space to help you when it comes to the cross border logistics experience, delivery experience and everything that is from A to Z with that including customs compliance, all those wonderful things which the deliveries into Mexico is full of the compliance and customs conversation. So again we're keeping it a little light. It's in a little prep for an upcoming episode. We'll tease it out a little in Japanese.

Jason, you can do a little teasing if you will too. Okay. So you know I love to start with some statistics so I had to, I had to whip them together real quick here.

But unlike you know, this is something I have shared before but we, we 100 everybody knows Mexico is a, is a, is an up and comer, right?

It's, it's a huge growth market in the E commerce space but we also know there's still some challenges out there or at least there's certainly perception of challenges when it comes to deliveries into Mexico.

for some hard Numbers in just: 2025

There's 80 million users in Mexico that are shopping online, which. Incredible. Which is significantly larger than some of the higher level marketplaces today or E commerce markets today.

So Jason, with that I do, you know, it's going to be a little bit more Q and A for those viewers and listeners out there today.

So I'm going to kind of just start it off and just say, Jason, can you give us a little bit of an overview because you've been a little bit more intimately involved in what's going on with what we're doing with Laredo and why Laredo is really such an important facility for what we're doing.

Jason Rowland: 00:03:25

Yeah, it's, it's. Mexico's a really dynamic market right now. It's, it's growing.

And if I had told you like before we started this today that hey Nick, did you know that the country with the number one most populated city is not currently on the top ten of, of market share for E commerce, you, you probably wouldn't think that so. But Mexico City obviously has a huge amount of people and it is really driving that need.

And, and the, the increase in volume that we're seeing is really due to the amount of people that are there and they're getting on with all these E retailers out of the US and starting to really pick up speed and really start changing the market in terms of where the highest destinations are going to be over the next couple of years. Mexico is positioning itself to be one of the top destinations for international E commerce going forward.

So what we have done to prepare ourselves for that is we created a facility down in Laredo in Texas and it's very close to the Mexico border and we have positioned there a team through, through some vendors who we contracted with over a long, long time of getting to know them and figuring out what they were capable of and what their networks were like. And it took, it took a long time to get that kind of foundation in place.

We've created a product where we can direct inject right into Mexico all the scanning and that kind of material of the material happens in our Laredo facility. It gets direct injected right into Mexico for dispersal to anywhere destination Mexico.

It could be on the peninsula side, it could be on the Gulf side, and there is the capability there to really help facilitate e commerce growth into that market. The direct injection product really helps us shave time on delivery. It helps us clear customs.

Everything happens in one at one time, all in one movement. We don't have a lot of downtime. There's not a lot of staging time or delays on the custom side of the house.

And it really helps us provide a product that's efficient and cost effective and with as few regulatory issues as possible. The tariffs are always going to be a thing. Right. I know we're right in the middle of this pause right now with a lot of these tariffs. Yeah.

But over the next couple of weeks, that's going to continue to evolve. Now, some of these things are tied up in American courts, which is going to drag it out even longer.

But at the same time, we are prepared now to start taking advantage of that influx of new volume that's going to start wanting to be sent southbound, and we're positioned really well to do that.

So I think the product that we have created through Leslie Foxholman and Foxholman and Mike DiVincenzo, the work that they've done for Sendia to create that product and get that stand up, that new service has been phenomenal. And I'm really excited over the next couple of weeks here that we're going to have a chance to bring them back on and. And really get some.

Some better updates from them on what that product is like, how it's going, and. And. And that kind of detail. But from what I do understand from my discussions with them is that that Laredo facility is operating smooth.

Everything is going very well, and it is ready to scale to whatever need is out there to start filling that. That vacuum as that increase in demand style. We see it continue down into Mexico.

Nick Agnetti: 00:06:52

Perfect. I love that. So you had mentioned Mexico City. I think last time I looked, it was well over 22 million, you know, so. Which is gigantic.

And you look at some of us here that are located in the United States, you look at cities that would even come close to that. And really, I think it would just be New York City would be the one.

Jason Rowland: 00:07:13

And it's not even.

Nick Agnetti: 00:07:14

And I think it's not even there. Yeah, it's not even close. So. All right, so.

Jason Rowland: 00:07:18

And.

Nick Agnetti: 00:07:18

And this is just. And it's still a learning curve for me, but I know obviously you're a lot closer to it, but compared to other options.

Jason Rowland: 00:07:25

Right.

Nick Agnetti: 00:07:25

So there's postal, there's courier but why is and I know you mentioned, you know, a little bit more on the control side, but what are some, you know, maybe a few bullet points and having our own facility that really sets our network apart, whether it's control. You mentioned compliance. Can you highlight a little bit of that and why that's important?

Jason Rowland: 00:07:44

Thank you for joining us on the outside the box with Ascendia USA Podcast. My co host Nick Agnetti and I are going to return on July 9th and continue our discussions about Laredo and the Mexican market share.

Voiceover: 00:07:54

Subscribe and download our podcast to learn more about today's topic or for a free consultation, email us@ecommerce usacendia.com Come back for more insightful discussions on E Commerce, shipping to Canada, Mexico and worldwide.