Facebooktwitterlinkedin

eCommerce in Brazil rivals many countries in some unique ways, as the largest economy in Latin America and the fifth largest country in the world, both in land mass and population. Brazil is the 12th largest economy in terms of GDP in the world according to the International Monetary Fund (IMF).

Index

Market volume

Brazil is consolidated as a mature market. According to Statista data, the revenue of the Brazilian e-commerce is expected to reach 49,173 billion dollars in 2022, resulting in a market volume that could reach 86,532 billion dollars in 2025. In 2021, this market generated more than 41,130 billion dollars in revenue.

Brazil is the Latin American country with the largest number of internet users. According to data from January 2022, a total of 165 million Brazilians use this network. Mexico is in second place in the region, with 96 million online users.

The reach of the internet in Brazil

The percentage of people who have internet access in the South American country exceeds 70% of the population. One of the factors that helps more Brazilians have access to the Internet is the ease with which users can connect today. In 2021, the majority of Brazilian Internet users accessed the internet from the comfort of their mobile phone. Another unique feature of the Brazilian eCommerce industry is the option and preference to pay for high value goods in installments.

Brazilian retailers are sophisticated and capable when it comes to entering fringe areas of eCommerce and physical products, even taking advantage of new channels, such as social networks and applications. Messaging services and social media are some of the main incentives for breaking the digital barrier in Latin America.

Like internet access, consumption of social networks in Latin America and the Caribbean has been increasing in recent years. At the end of January 2022, most of the countries in the region had a percentage of users of these platforms above 60%. In Brazil, Youtube, Facebook, Whatsapp and Instagram are the four mail social networks, according to a recent Hootsuite research.

Best-selling categories

Neotrust reports in 2021, showed that from March 2020 to March 2021, the best-selling categories in Brazil (in terms of orders) were:

  • Fashion and Accessories (19% share of total e-commerce retail sales)
  • Beauty, Perfumery and Health (14.7%)
  • Entertainment (12.5%)
  • Small Kitchen Appliances, Domestic Services, Bed, Table and Bathroom (10.1%)
  • Furniture, Construction and Decoration (8.1%)

Most popular eCommerce store types

According to Ebit/Nielsen and Bexs, the 6 most popular e-commerce store types in Brazil in mid-2021 (in terms of order growth) were:

  • Home and decoration
  • Shopping for pets
  • Sports articles
  • Food

Main payment methods

According to the FIS Global Payments Report 2021, at the end of 2020, the most common payment methods used for e-commerce purchases in Brazil were:

  • Credit cards (43%)
  • Digital wallet (17%)
  • Debit cards (13%)
  • Postpaid (12%)
  • Bank transfer (8%)
  • Direct debit (2%)
  • Other methods (4%)

According to research by Nielsen, the top reasons Brazilian consumers shop 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

 Main Brazilian eCommerce sites

While Amazon makes the cut, as it does in most countries, the Brazilian top sites are notably mixed with local and international eCommerce businesses; very few of them are the great American mega-players that most countries are unable to avoid.

Regarding the sales revenue figures recorded in 2021, according to eCommerceDB, the 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. It is followed in second place by Amazon Brazil (amazon.com.br) with 2.6 billion dollars (2.341 million euros in revenue) and casabahia.com.br in third place with 2.4 billion dollars (2.161 million euros).

These are the main players in Brazil eCommerce

Amazon Brazil. It offers strong competition for existing eCommerce brands in Brazil, offering the widest range of products, from books to fashion, food, accessories, electronics, games, streaming and more.

Americanas. Brazilian eCommerce site that operates in three categories; convenience stores, supermarkets and hypermarkets. Online, Americanas runs the gamut, offering automotive products, phones and phone plans, toys, TVs, computers, tablets, home theater and audio equipment, fashion, games, furniture and more.

Casas Bahía. Offers a wide range of products in categories that include kitchen, air conditioning and ventilation, audio, automotive, electronics, as well as fashion, accessories, perfumes and more.

Dafiti. This business is focused on the online fashion and footwear markets, building an audience of loyal shoppers excited about its range of men’s, women’s and children’s fashion products. Since 2011, Dafiti has expanded its range to include household items and sports products, as well as clothing, bags, accessories, perfumes, beauty products and decorations.

Magazine Luiza. One of the most prominent retail organizations in the country. Luiza magazine offers consumers retail items including computers, consumer electronics, televisions, media equipment, furniture, appliances and more.

Mercado Livre. Argentine marketplace that allows users, both individuals and businesses to buy and sell items across product categories, including vehicles, technology, appliances, and more.

Netshoes. Brazilian pure eCommerce store that specializes in the sports retail sector, offering customers everything related to sports, from shoes to clothing, accessories, sports equipment, supplements and more. They run online stores for Latin American sports brands, as well as other global sportswear brands.

OLX. Dutch online marketplace founded in 2006 now operating in 45 countries, including Brazil. The platform allows users to buy and sell goods and services in a wide range of departments, including real estate, cars and parts, home, electronics, fashion and beauty, agriculture, industry, and more.

Shoptime. Shoptime has become an eCommerce mega-brand in Brazil offering its customers a range of international and local brands in departments such as home appliances, electronics, party supplies, craft supplies, books, musical instruments. and more.

Submarino. This company offers products in product categories including books, appliances, games, cell phones, televisions, audio and home theater equipment, computers, fashion, sports, supplies, furniture, decorations, beauty items, perfume, and even travel deals.

Imagen: Depositphotos

Keep informed of the most relevant news on our Telegram channel

Write a comment