After Amazon entered the market, physical store prices fell 28%

A study conducted by the Mexican College (Colmex) shows that the impact of Amazon Mexico in the country has led to lower prices for products and services in physical stores across the country, a result that shows that the arrival of Amazon has created more competition.

Since its launch, Amazon has increased the product selection it offers to customers in Mexico by more than 150%, currently offering more than 45 million unique items, and its presence has fueled competition in the retail industry, with prices on goods and services such as clothing and furniture falling by up to 28% in physical stores.

Amazon arrived in the country in 2015 and has since lowered prices in brick-and-mortar stores across categories including fashion, furniture, food, health and entertainment, according to an in-depth analysis of its impact on prices.

According to the seminar “The Impact of Amazon’s Entry into Mexico on Physical Store Prices” presented by Raymundo Campos, Aurora Ramírez of Colmex and independent consultant Daniel Ruiz, when a product is sold on Amazon, its price in physical stores will start to decrease.

Products sold through Amazon’s own brands saw price cuts in physical stores ranging from 1% to 28%. This phenomenon occurred to a lesser extent in other markets, as when third parties sold products from the e-commerce platform, their prices in stores were only reduced by 1% to 7%.

Colmex analysts said prices fell faster in cities where e-commerce accounted for a higher proportion of sales, with prices falling by up to 36% compared with brick-and-mortar stores.

Editor✎ Ashley/

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