Mexican Net Dance

The state of e-commerce in Mexico is a lot different than here in the United States. For instance, it's important to note that the real growth is happening in B2B; the country's B2C sector is still developing. But the laws are different, too. According to Sam Logan of IonAmericas, an e-business resource for Latin America, Mexican law requires online merchants to send customers paper invoices and receipts, thus subjecting high-speed Net businesses to the postal service's time frame. And delivery logistics remain complex due to inadequate transportation and the many middlemen who've long been part of Mexico's supplier-to-consumer chain. Low credit card penetration poses another barrier-vendors must facilitate alternative forms of payment, such as c.o.d., debit cards and direct transfers. Those challenges, though, are probably temporary. Banks are developing alternate payment methods, and there are high hopes President Vicente Fox will support e-commerce-friendly legislation.

This article was originally published in the February 2001 print edition of Entrepreneur with the headline: Mexican Net Dance.