It seems that, to the Brazilian consumer, there’s no such thing as “crisis.” The economy has been bumpy for years, and despite the Covid-19 pandemic having left the world’s economy in bewilderment, e-commerce in Brazil has found ways to prosper in a languishing market.
Black Friday was no different. In 2021, the most significant event in the e-commerce world continues to grow in the country. The revenue generated in the 2021 edition increased by 5.8% compared to 2020, generating nearly BRL 5.5 billion.
Black Friday in Brazil
Considered the second most important day in terms of revenue for online shopping — the first is Lovers’ Day — in 2020, the online sales revenue during Black Friday celebrated an annual growth of 25%, the highest since 2014.
Brazil is a country that has a large consumer culture; perhaps that’s what makes events such as BF collect historical accolades and sustain rapid growth over the years. That means Black Friday is an excellent opportunity for cross-border merchants interested in entering the Brazilian market.
Most used payment methods during Black Friday
In 2021, the most used payment method by the consumer during Black Friday in Brazil was the credit card, similar to previous years. In general, nearly 70% of online shopping in the country is done with a credit card, as Brazilian shoppers are used to paying in installments.
Boleto bancário, the choice of approximately one-third of Brazilians that are unbanked or have a debt history, is a traditional local payment method that plays an important role in digital shopping inclusion. The unbanked population of 34 million adults and a high household indebtedness make credit cards an option for only a few.
However, the newest and now one of Brazilians’ favorite payment methods, Pix, and digital wallets, rose in numbers during the last BF. Pix is a technology created by the Central Bank of Brazil, allowing instant payment in less than 10 seconds, 24 hours a day, seven days a week – including weekends and holidays.
How to prepare for the next Black Friday
As you may have noticed, Black Friday is an important event for those interested in penetrating the Brazilian online market. We’ve wrapped up two ways for you to prepare for the next Black Friday.
Learn about the challenges for the cross-border merchant in the Brazilian market.
So, first things first. Brazil is the only country in LatAm whose native language isn’t Spanish, and fluent English speakers are rare — it is estimated that only 5% of the population speaks the language. That means having a PT-EN website is essential.
The second barrier is the currency. Brazilians tend to avoid purchasing goods and services in foreign currencies due to high taxation and currency conversion, which may not compensate them. We recommend you to include in your online store, options in the local currency, Brazilian Reais. Lastly, it is the delivery process of parcels. The logistics and delivery of goods in Brazilian territory can be slow and bureaucratic. Learn how the country’s shipping and delivery process works to get ready for that.
Learn about the consumer’s behavior
According to research done by the website Conducted, from the 76% of participants who purchased something during 2020’s Black Friday, 88% said they were planning to do it again in 2021. The participants also mentioned that price, brand reputation, customer reviews, and security are decisive in a purchasing decision.
The credit card is the most preferred choice when it comes to payment methods, followed by the boleto bancário and Pix. Brazilian buyers won’t think twice about finding another merchant if they don’t have hassle-free payment options.
PagBrasil can help you broaden your payment alternatives and meet the expectations of a complex and unique market — our innovative solutions were developed with the cross-border merchant in mind. The exclusive Boleto Flash® has higher conversion rates than the traditional boleto, with payment confirmation in less than an hour.
Boleto Flash® can also be paid with PagBrasil Pix — for the skeptical ones or those who still prefer to use a traditional payment method, PagBrasil Pix combines both methods in one.
Turn challenges into advantages
Black Friday fosters impulse buying and if the merchant does not offer an effortless payment method, chances are, buyers may think twice and change their minds. Payment links and hassle-free ways such as Pix and Boleto Flash® offer quick solutions for the consumer to hit “buy” faster.
Pix has been mostly used for medium to low average ticket items, making it the best option for merchants with similar average tickets. For physical products, Pix reduces inventory holding, as that payment method presents instant confirmation.
PagBrasil offers the widest set of local payment methods, with solutions specifically designed for the Brazilian market. Get started today! Reach out to us and discover more!
