Brazil is By Far the Largest Online Sales Market in Latin America
PagBrasil / Market Insights Brazil
Brazil, One of the Biggest E-Commerce Opportunities in the World
#1 Market in Latin America
Brazil is the largest economy in Latin America and the 5th biggest country in area and population in the world. It is the 4th largest internet market globally, with 140 million internet users out of a total population of more than 207 million. According to Euromonitor Internacional, Brazil represents about 42% of all B2C e-commerce in Latin America. With 111 million active Facebook users, Brazil is ranked number 3 on a worldwide scale.
Brazilian E-commerce Market Growth
Despite the adverse economic scenario of the past couple of years, Brazil’s e-commerce market continues to show a positive growth trend, and ended 2016 with a growth of nearly 8%, with 48 million e-consumers spending BRL 44.4 billion (US$ 14.3 billion) on the web.
With a predicted online retail growth of 12% in 2017 and a total of BRL 50 billion in sales, Brazil continues to be one of the outstanding opportunities for online retailers in Latin America and the world.
Main Product Categories by Revenue
Brazil registered a total of 106 million e-commerce transactions in 2016, with an average transaction amount of BRL 417. Despite leading in number of transactions, the category of fashion and accessories is only in 6th position in terms of revenue, with 5.6% share. The following are the main product categories by revenue, with household appliances still leading the list, despite a minor drop of 0.2% in share in comparison to the previous year:
- Household appliances – 23%
- Telephony / Mobile – 21%
- Electronics – 12.4%
- IT – 9.5%
- Home and decoration – 7.7%
As the 5th smartphone market worldwide, it is not a surprise to see m-commerce growing in share in the country. Mobile devices were used for nearly 22% of e-commerce purchases, a significant growth in comparison to 2015, when its share was only 12%. Desktop is still king and was used in over 78% of the purchases. However, the rapid m-commerce growth highlights the importance of making mobile devices a part of the business strategy for Brazil.
Read about online payments in Brazil.