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Brazilian E-commerce Industry H1 2018

Published on 09/13/2018 - Updated on 04/20/2023

The first half of the year was positive for the Brazilian e-commerce industry, which registered a nominal growth of 12.1%* in comparison to the same period in 2017. The growth is particularly exciting when considering events that have taken place this year and the political uncertainty the country is experiencing.

In May, truck drivers carried out a massive strike that has impacted several segments of the Brazilian economy, including e-commerce. As the deliveries were affected and delayed by the strike, the sales volume dropped in consequence of this. The FIFA World Cup, which took place between mid-June and mid-July, has driven the increase in sales of televisions but, at the same time, contributed to the reduction of the sales volume during the hours of Brazil matches. The political scenario ahead of this year’s presidential election in October also amplifies the uncertainties in the country, which makes consumers act more cautiously with their money and think twice before carrying out their online purchases.


Brazilian E-commerce Industry Highlights

The Brazilian e-commerce industry reached a total revenue of BRL 23.6 billion in H1 2018, a growth of 12.1% against the volume of the first half of 2017. Additionally, 4.5 million new consumers joined e-commerce in the first six months of the year, totaling 27.4 million buyers, 7.6% more than the previous year. With nearly 55 million transactions carried out during H1 2018, 8% more than in H1 2017, the average transaction value during this period increased 3.8% to BRL 433.

Continuing its excellent growth trend, the m-commerce segment had 41% more transactions in the first half of 2018 than in 2017. Mobile devices already account for 32% of all e-commerce purchases in Brazil. Comparing the growth of the m-commerce segment with the entire e-commerce industry, it is evident how fast m-commerce is growing:

When it comes to paying for their online purchases, 52% of consumers opted for one-off payments. It is the first time that installment payments have lost the lead to one-off payments. However, when choosing to finance the purchases, they prefer to pay in 4-12 installments (28.5%) rather than in 2-3 installments (19.5%). Discounts and other incentives for one-off payments, particularly with boleto bancário, are key for this shift in their payment behavior.


This Year’s Forecast

The good results for H1 2018, added to an optimistic scenario for the second half of the year, mostly thanks to special dates such as Dia dos Pais (Fathers’ Day), Dia das Crianças (Children’s Day), Christmas and especially Black Friday, make it possible to forecast a growth of 12% for this year, when the e-commerce industry should reach a total revenue of BRL 53.4 billion.

*The source of all data in the article is the 38th edition of Ebit’s Webshoppers report.

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