Finding the cheapest shipping to Mexico can be difficult in the complex world of eCommerce. As inflation takes center stage in today’s market, finding the most cost-effective ways to send items across borders becomes all the more pressing for eCommerce businesses. Luckily, we’ve outlined how to find the cheapest way to send goods to Mexico so you can navigate the most cost-efficient option for your business. With a well-crafted strategy and experienced partner, shipping to Mexico can be a successful and lucrative venture.
Shipping to Mexico for eCommerce businesses: Key financial considerations
With Mexico as a highly sought-after destination, there are many easy advantages to targeting this profitable niche.
Distance: The distance to Mexico is significantly closer than other international destinations, making for a smooth and swift trip for eCommerce businesses shipping from the USA.
Economy: As the second-largest eCommerce market in Latin America, Mexico holds a significant economy in the region.
USMCA: The United States-Mexico-Canada Agreement (USMCA) entered into force on July 1, 2020. The USMCA, which substituted the North American Free Trade Agreement (NAFTA) is a mutually beneficial win for North American workers, farmers, ranchers, and businesses.
While all the above considerations make shipping to Mexico sound easy and affordable, other factors can significantly affect the cost.
- Violating size and weight restrictions can accrue additional costs when shipping to Mexico.
- Selecting a faster shipping method will be more expensive despite Mexico’s close proximity to the U.S.
- Shipping to Mexico requires obtaining customs clearance. This is completed by presenting the proper customs forms, such as a commercial invoice and bill of lading, and paying the applicable taxes and import duties.
- Certain items are prohibited from travel, resulting in additional costs if the proper permits are not obtained.
- Mexico has a value-added tax for items entering the country.
As an eCommerce business, it’s crucial to understand every factor that can influence the cost of shipping, from your target market’s international economy to all the factors that go into the final price of shipping there. Identifying each component that goes into the process can help mitigate additional costs and safeguard your shipments without additional fees or delays.
Cheapest shipping to Mexico: How to get the best rates
Reducing shipping costs brings numerous benefits to eCommerce businesses. Lower shipping expenses can directly contribute to improved profit margins and cost efficiency, freeing up resources that can be redirected toward other facets of business expansion.
Here are our top 7 tips to optimize costs when beginning the shipping process.
- Compare providers
The cost of shipping to Mexico will be directly correlated to the shipping provider you choose to work with. Shipping companies offer various shipping costs and pricing models, domestically or internationally. Before shipping to Mexico, consider researching multiple shipping service providers and postal services to find the most cost-efficient options that work with your budget and timeline. Be sure to factor in all offerings as opposed to just the cost. While opting for the cheapest option might be tempting, it often comes with trade-offs, potentially lacking essential offerings crucial for your eCommerce business.
For instance, a recent study uncovered that 75% of Mexican consumers prioritize real-time order tracking when making online purchases. As a result, it becomes imperative to partner with a service provider that offers enhanced tracking services to meet the expectations of your Mexican customers. Investing in robust tracking satisfies customer demands and provides your company with valuable insights into the precise location of your shipments throughout the entire process, ensuring a smooth and delay-free transit time.
- Receive multiple quotes
Gathering multiple quotes is a strategic move that empowers your business to assess all options thoroughly and gain insight into the extensive array of services each provider brings to the table. Many shipping companies offer user-friendly online tools and free quotes, providing you with valuable insights into initial costs. These tools can help your business formulate a preliminary budget, ensuring a well-informed decision.
- Consider packaging size and weight
The size and weight of a package significantly influence the cost of shipping. Generally, lighter and smaller packages translate to lower shipping costs, regardless of the chosen delivery time, and heavier and larger packages lead to more expensive ones. However, there are special circumstances where the weight and size do not directly influence the cost. For example, if your business opts for flat-rate shipping, that could be a way to have a set rate for your shipments without worrying about varied pricing. This is an excellent saver option for businesses that regularly ship items of similar size. On the other hand, some providers use a pricing model by dimensional weight (DIM). DIM is determined by the amount of space a package occupies for commercial freight shipments. Delivery trucks have limited space and need to optimize cargo as much as possible. So, while a package weight may be light and meet the standard requirements (this varies by provider), your shipment could be taking up too much space, adding additional costs.
- Optimize packaging
Mexican consumers are highly concerned about broken items during transit; they worry about the possibility of receiving damaged or flawed products after paying a premium for shipping. Broken items end up costing your business more in the long run. To save costs, utilize affordable yet durable packing materials, like bubble wrap, corrugated cardboard, and packing peanuts. Other pro tips include using smaller packaging when appropriate and double-checking shipping labels to prevent lost packages.
- Don’t forget about taxes and customs duties
When searching for the cheapest shipping to Mexico, many businesses prioritize shipping speed in their cost analysis; however, customs fees and taxes should also be at the forefront of your budget, as these play a prominent role in the final cost when shipping across borders. Customs fees will vary from country to country, but many countries require import duties and taxes for most items. The VAT in Mexico is known as the Impuesto al Valor Agregado (IVA) and is currently set at a rate of 16% for imported items. The customs value includes the cost of the items, transportation, and insurance up to the point of entry into Mexico. Shippers are responsible for paying the IVA to Mexican customs authorities. In some cases, certain items may be exempt or set at a reduced rate, depending on the nature of the goods and any applicable trade agreements or regulations.
- Research restricted goods
Awareness of the prohibited items in Mexico is crucial for your business, as it can save time and unnecessary expenses when shipping to this gainful destination. Surprisingly, some restricted items may be different from what you expect. For example, chocolate and products made of chocolate require special authorization from the Mexican Secretary of Commerce. Further, other items like medicinal products, cosmetics, and toilet articles must obtain approval from the Mexican Department of Public Health. Lack of the proper customs forms like permits or certificates could result in your products being seized or returned to their country of origin.
- Avoid common delays
The best way to avoid delays that accrue additional costs is to mark potential holiday closures and account for weather delays. Late packages result in unsatisfied customers and potential returns, a critical factor in added costs that hinder business growth. Further, Correos de México, the Mexican postal service, recognizes various Mexican holidays like Benito Juárez’s Birthday, which is the third Monday in March, and Independence Day (Día de la Independencia), which falls on September 16th each year. The United States Postal Service also recognizes federal holidays, which results in post office closures that affect shipping times. To stay knowledgeable when shipping to Mexico from other countries, utilize a calendar of Mexican holidays to schedule shipments and adjust timelines accordingly and factor in potential delays due to office closures and limited business hours.
Shipping timelines: Cheapest options for eCommerce businesses
When it comes to eCommerce delivery, fast shipping is pivotal, but not all customers desire expensive and fast delivery options. A 2023 shopper survey across 18 countries, including Mexico, asked consumers what they would change about online shipping in the future. The findings indicated that 48% of consumers prefer faster delivery, closely trailed by 43% expressing a preference for more budget-friendly options.
Mexican consumers, specifically, value ecological and ethical products, causing them to turn to online marketplaces due to the cost-efficient pricing models and convenience of online shopping. As an eCommerce business, selecting a faster delivery will naturally incur higher costs. However, offering your customers a range of choices between the most economical, quickest, and best-value shipping options allows you to cater to diverse preferences and needs. Below, we’ve outlined a few examples.
Standard/Priority
Generally, standard or priority shipping options are the most cost-efficient, but the transit time is longer. An average priority mail option when shipping to Mexico takes around 6-10 business days.
Express/Expedited
Express shipping is faster, but more costly, typically with premium options included. Express or expedited shipping may only take 2-5 or 3-5 business days. First class and global express are other similar options, but the cost will be exponentially higher depending on the courier and shipping provider.
It’s important to note, transit time will vary based on the shipping provider, carrier, nature of goods, and destination country.
Partner with ePost Global
The quest for the cheapest shipping to Mexico and the most efficient routes requires a great effort. That’s where ePost Global steps in. With seasoned and dedicated shipping teams, we go beyond conventional courier services like DHL, UPS, and FedEx. Our shipping services extend to consolidating shipments from multiple businesses, leading to a more efficient utilization of transportation resources, shorter delivery times, and reduced costs. We do this through esteemed partnerships and cost-efficient shipping options like USPS Priority Mail International and USPS Priority Mail Express International. These international USPS shipping services enable our clients to enjoy swift shipping overseas at a cost they can afford, with quality offerings like door-to-door advanced tracking and reliable customer service no matter where your business is shipping.
Recognizing that cost-effective shipping not only bolsters a business’s financial standing but also plays a pivotal role in ensuring customer satisfaction is essential. Providing competitive shipping rates and timely deliveries to Mexican customers not only enhances competitiveness in the Mexican market but also nurtures long-term customer loyalty. By entrusting your shipping needs to ePost Global, you can concentrate on managing your business, leaving the hassle of shipping in the capable hands of experts.
If you’re ready to ship packages with ease, contact us!
