Brazilian ecommerce continues to grow by the year. And, for 2020, it is forecast to reach BRL 106 billion, according to the Brazilian Electronic Commerce Association (ABComm). The number represents 18% growth when compared to the previous year. This will be the first time Brazilian ecommerce passes the BRL 100 billion mark.
Marketplaces, small businesses, and smartphone transactions will be the main factors that will account for this growth. In addition, ABComm estimates an average of 342 million orders from nearly 68 million consumers. Last year, Brazilian ecommerce grew 23%, according to the association, reaching BRL 89.9 billion.
Brazilian ecommerce insights
We’ve gathered a few insights from multiple reports that provide a clearer picture about this fast-growing market in Brazil.
According to the Digital 2020: Brazil report, carried out by We Are Social and Hootsuite, Brazilian ecommerce’s leading category is fashion and beauty, with a total amount spent of USD 5.25 billion. Electronics and physical media come in second (USD 4.15 billion), followed by food and personal care (USD 1.30 billion) and furniture and appliances (USD 1.99 billion).
The southeast region leads the Brazilian ecommerce market, with 56.6% of market share, according to the Webshoppers 40th report, carried out by Ebit|Nielsen. However, the report also showed that the northern and southern regions are the fastest-growing regions, with respectively 36% and 29% growth.
Main payment methods
According to Webshoppes 40th, credit cards remain the main payment method for digital purchases. However, Digital 2020: Brazil shows that merely 27% of the Brazilian population own a credit card. This means that businesses that do not offer alternative payment methods leave a large percentage of the population excluded from purchasing from their online stores.
The boleto bancário is the second most-used payment method, accounting for 19% of all orders. In addition, nearly half of all payments are made in credit card installments.
Shipping costs have a high impact on Brazilian consumers. According to Ebit|Nielsen, 60% of buyers would rather pay less for shipping costs – even if this means the delivery due date is delayed. In addition, research carried out by Social Miner and OpinionBox showed that 55.4% of consumers would give up on a purchase entirely because of shipping costs.
As Latin America’s largest retail ecommerce market, Brazil will remain an outstanding opportunity for local and global merchants. However, understanding the country’s particularities is essential for those who wish to thrive in Brazilian ecommerce.