Electronic commerce is a reference for all of Latin America. This country, with one of the strongest economies on the continent, has directed its steps towards digital trends and online shopping to offer a better consumer experience.
Currently, Brazil has a population of more than 212 million inhabitants, of which around 73% have Internet access, according to data from . In addition, at the beginning of 2021, Brazil was the Latin American country with the highest number of online users and it is estimated that in 2026, approximately eight out of ten Brazilians would have used the web at least once a month.
The 15th largest marketplace in the world for eCommerce
In context, Brazil is the 12th largest economy in terms of GDP in the world according to the International Monetary Fund (IMF), and although experts say that during 2022 it will suffer a sharp slowdown. Even so, electronic commerce is still seen as an important alternative to generate income for the Brazilian economy.
Brazil is the fifteenth largest market for global eCommerce, with revenues of 26,000 million dollars (about 23,400 million euros) in 2021, ranking ahead of Mexico and behind Italy, according to data from . Also, thanks to an increase of 18%, the Brazilian e-commerce market contributed to the global growth rate of 29% in 2021.
As with many markets around the world, e-commerce is transforming the way products are sold in Brazil. According to , electronic commerce in the country of Rio de Janeiro grew by 31% during the first half of 2021 compared to the same period of the previous year. In 2020 alone, the number of online consumers increased by more than 40% due to health restrictions stemming from the COVID-19 pandemic and changing consumer preferences.
According to data from the number of revenues in the Brazilian e-commerce market is expected to reach 49,173 million dollars (44,290 million euros) during this 2022. Likewise, there are projections that point to the volume of revenues showing an annual growth rate (CAGR 2022-2025) of 20.73%, which results in a market volume that could reach up to 86,532 million dollars (over 77,900 million euros) by 2025.
On the other hand, 45% of the Brazilian population purchased at least one product from an online store throughout 2021 and the number of users in the Brazilian eCommerce market is expected to reach 138.0 million users by 2025.
In addition, the Statista report also projects that user penetration will be 57.5% during this 2022 and is expected to reach 63.0% by 2025.
Consumer profile: habits that define e-commerce in Brazil
The self-service segment (entertainment, tourism, durable, non-durable and perishable) registered the higher growth in number of total orders and gross income. Nevertheless, home and decoration they are the most popular eCommerce retailers in terms of sales, registering a 155% increase in the number of orders and a 67% increase in revenue. In second place in terms of the total number of orders are the stores of pets (56%), followed by sports (48%), department store (37%)foods (34%) and self service (32%), the latter represents any online transaction (from purchase to delivery) that is completed without the help of another person.
Brazilians prefer to shop online through their telephone intelligent, instead of by computer. Last year they bought 56.3 million dollars (50.7 million euros) in goods through a smartphone, with an average purchase value of 100 dollars (90 euros).
During the first half of 2021 and compared to the same period in 2020:
- Sales increased by a record 31%
- The average price of items purchased increased 22%
- Orders increased by 7.4%
- Number of orders with free shipping grew by 8%
- Mobile sales increased 56.2%.
The main reason for such tremendous growth in online shopping in Brazil is largely due to the pandemic. The government issued pandemic relief through the implementation of digital wallets for the majority of Brazilians, giving millions of Brazilians access to online retailers for the first time. The Southeast region of Brazil, where Sao Paulo and Rio de Janeiro are located, continues to be the most important region for sales in Brazil, having contributed 51% to the growth of Brazilian eCommerce last year.
According to an investigation carried out by , the Main reasons why Brazilian consumers buy online include:
- 73% of customers do not want to leave home.
- 52% prefer special promotions such as free shipping, discounts, samples and loyalty program.
- 47% value the time saved.
- 38% take into consideration the delivery times of the orders.
eCommerce in Brazil: largest online stores
Free market
speaking of Free Market (in Portuguese Mercado Livre) reference is made to the largest eCommerce store in Latin America. Born in Argentina, the platform over time has expanded throughout the continent and Brazil, of course, is no exception.
This website allows users (whether individuals or business accounts) to buy and sell items across different product categories, including vehicles, technology, home appliances, and other items.
Americanas.com.br
It is an eCommerce website launched by American Stores, a Brazilian brick and mortar retail chain. The physical store American It is divided into three categories: convenience stores, supermarkets and hypermarkets.
But on your website, Americanas.com.br offers all kinds of products, ranging from automotive products to phones and phone plans, to toys, televisions, computers, tablets, audio and home theater equipment, fashion, games, furniture and much more.
Magazine Luisa
Magazine Luisa is one of the most prominent retail trade organizations in Brazil. The company has more than 800 brick and mortar stores spread throughout the country of Rio de Janeiro.
The company started in the 1950s and has become a household name in the Brazilian retail industry. Once it expanded online, its growth was even greater, reaching many more customers of course. Today it offers a wide variety of retail items, including computers and other electronics, televisions, furniture, appliances and more.
Bay Houses
Bay Houses is a chain of appliance and furniture stores with more than 700 brick and mortar stores spread throughout Brazil, as well as having a strong presence in the Brazilian eCommerce market.
In its online store, the chain offers different types of products, of which the following stand out: kitchen, air conditioning and ventilation, audio, automotive, electronics, fashion, accessories, perfumes and much more.
OLX
OLX is an electronic commerce platform that began operations in 2006 in the Netherlands and currently has a significant presence in 45 countries around the world, including Brazil.
The OLX Brasil platform allows its users to publish and sell articles, goods or services of all kinds within a wide spectrum of departments, which include: real estate, automobiles and parts, home, electronics, fashion and beauty, agriculture, industry and more.
Dafiti
Considered one of the main success stories in Brazil in terms of electronic commerce, Dafiti was born with the purpose of capitalizing on the online fashion and footwear markets, managing to mold an audience of loyal buyers who always bet on its range of clothing for men and women, in addition to children’s fashion.
Founded in 2011, Dafiti has been expanding over time, adding new departments to its online store, such as home goods and sports products, which have joined other categories such as clothing, bags, accessories, perfumes, beauty products and decorations .
Top eCommerce in Brazil by sales
As for the sales revenue figures recorded in 2021, according to eCommerceDBthe most important eCommerce platform in Brazil is magazineluiza.com.br. This website obtained revenues of 3,300 million dollars (2,972 million euros) last year. Followed in second place Amazon Brazil (amazon.com.br) with 2,600 million dollars (2,341 million euros in income) and casabahia.com.br in third place with 2,400 million dollars (2,161 million euros).
Together, the three main stores represent 30% of online revenue in Brazil (considering only the revenue generated within the Latin American country).
Source: ecommercedb.com
Top eCommerce in Brazil by traffic
With respect to web traffic, according to , the website of Free Market received approximately 110.7 million visits in Brazil during January 2022, followed by Americanas.com, which that month registered almost 57.4 million visits. They also appear in the top five of this table OLX (31.2 million views), Magazine Luisa (30.8 million) and amazon brazil (24.3 million).
The best sellers of electronic commerce in Brazil
According to data from eCommerceDB, the Electronics department has been the most demanded in eCommerce in Brazil during 2021, contributing 27% to the revenue of this market on Brazilian soil. It is followed by the Fashion sector (22%), Toys and Hobby and DIY items (19%), Furniture and Appliances (17%) and Food and Personal Care close with the remaining 16%.
Keys to the success of electronic commerce in Brazil
One of the factors that has promoted electronic commerce in Brazil is banking. According to , the country has evolved considerably in terms of financial inclusion. Therefore, different public policies have been applied to result in 68% of the population obtaining a bank account.
Consequently, the population has greater access to local payment methods. In addition, this has been the starting point for new payment technologies that optimize transactions and open purchase and sale channels.
Unlike other economies in the region, this has enabled Brazil to promote electronic commerce.
Photo:
Stay informed of the most relevant news on our news channel
Facebook Comments
Disqus