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Development status of e-commerce in Brazil

Create Date: 2019-06-18 02:54:32

Size of Brazilian e-commerce market

Brazil which is the world's fifth most populous country is the only Latin American country to rank among the world's top 10 e-commerce retail markets, and its number of active e-commerce users has increased by 76.36% in the past five years. According to the e-Bay Webshoppers report, e-commerce consumption in Brazil reached 47.7 billion reals in 2017, growing 7.5% than in 2016. And despite the recent economic downturn in Brazil, the growth of e-commerce is still positive at 12% in 2018.

Here are specific numbers of Brazilian e-commerce:

  • Population: 210 million
  • Active Internet users: 110 million
  • Active social media users: 96 million
  • Active mobile social users: 92 million
  • Population shopping online: 80 million
  • Proportion shopping online from abroad: 54%
  • Digital commerce growth: 12%

Top websites of Brazilian e-commerce

Top 1 Mercado Livre

Mercado Livre is the largest e-commerce platform in Latin America. The site has more than 331 million visitors a month and is available in 16 countries, including Argentina, Bolivia, Brazil and Chile. Mercado Livre expands its mobile point-of-sale (POS) transactions with its MercadoPago online payment tool, which allows users to store cash in their accounts.

Top 2 Americanas.com

Americanas.com is the online portal of Lojas Americanas which is retail chain store, and it mainly sells consumer and media electronics, household appliances, furniture, beauty products and toys. The site has more than 119.5 million visitors a month. And it has nearly 500,000 products on sale as well as 10 million customers and 20,000 B2C and B2B sellers.

On March 11, 2019, Americanas international station (Americanas Mundo) was launched. and achieved an amazing result of thousands of orders on the first day of launch. 

Top 3 Amazon

Founded in US in 1994, Amazon has evolved from an online bookstore into an e-commerce platform with diversified products, including media, electronic products, clothing, furniture, food, toys and jewelry. Amazon has expanded into many countries, including Brazil, becoming the undisputed e-commerce giant in US and many other countries. Amazon in Brazil has more than 51.5 million visitors a month.

Top 4 Magazine Luiza

Magazine Luiza was founded in 1957 and now operates more than 800 department stores across the country, making it one of the largest retailers in Brazil. The company has launched an online platform called Magalu, which sells a range of products including consumer electronics, furniture and home appliances, televisions, media equipment and computers. And it has more than 49.3 million visitors a month.

Top 5 Casas Bahia

Casas Bahia mainly sells furniture and household appliances, also offers consumer electronics and computers, as well as a range of services for consumers and businesses. It also operates 750 physical stores in Brazil. And it has more than 37.1 million visitors a month.

Customers of Brazilian e-commerce

Brazilian men and women spend about the same amount on online shopping. They like buying products from US and China most. Brazilian's attitude toward Chinese goods has improved significantly in the last five years, for the reason that the quality of goods bought on cross-border platforms are more than expected, and there is a general perception that Chinese goods are better priced and more modern in design.

Customers in Brazil prefer to pay attention to merchants to track their products and promotions. They also like chatting with sellers, even though the sellers are not good at English. In shopping process, they will view the experience and comments of other buyers and recommend their favorite products to their friends.

Logistics and delivery of Brazilian e-commerce

Brazil's state-owned enterprise -- Brazil Post is the largest logistics company. Although there are also DHL, UPS, TNT, FEDEX and other global express companies, the overall e-commerce logistics in Brazil is still expensive, low efficiency and poor service as well as many mistakes. This brings huge restrictions to the development of the local e-commerce industry.

According to statistics, in Brazil, 87% of e-commerce websites transport goods through Brazil Post, and 36% of e-commerce companies choose to use professional express companies. These express companies generally do not limit the size of packages and can provide different services according to the delivery speed and price requirements, but the prices are often very high.

While the rise of regional logistics companies has a very big effect on the logistics market in Brazil. Although it only takes up 3% of their market, because of its concise and distribution program, electric business enterprise can provide "next-day delivery" service to some parts. And compare to national logistics company with complex procedures, regional logistics company reduce shipping costs by 20% to 40%.

Payment methods of Brazilian e-commerce

Brazilians often pay in installments. 49.8% of e-commerce sales were made in one payment, the remaining 50.2% were made in installments. 18% of purchases were made in 2-3 installments and 31.5% were made in 4-12 installments.

Payment methods are complex and varied in nature. In 2017, 64% of online consumers used credit cards, 16% used Paypal, while 20% used payment slips (Boleto Bancario). Security continues to be a concern particularly regarding online fraud. Most Brazilians do not carry international credit cards. The most commonly accepted cards in Brazil are Visa and MasterCard with chip and PIN technology.

Dropshipping in Brazil

Dropshipping in Brazil has challenges in the past years. The postal service in Brazil is really unstable and slow. A package could take until three months to arrive and often it gets lost. And the international couriers are not always the best choice because they are charged fees that can be as much as 100% of the shipping cost. The other major issue at play is that the package can get held up at customs for anywhere between 30 and 180 days.

But a method ePacket is changing the shipping issues. The government added a tax on international packages. All international mail arriving in Brazil through the Post Office will be subject to a R$15 postal fee. This new tax was a good motivation to improve the Postal Service that now became really faster: the average time of a package from China to Brazil can be 25 days with the Chinese Postal Service ePacket.

And Brazilian also prefers the Chinese products, furthermore, there is a professional Chinese dropshipping website that can help you source and delivery, it is a good idea to dropship products from China to Brazil.

Find winning products to sell on app.cjdropshipping