Voice of the Industry

Brazil hot trends: The boost of ecommerce in 2020 and forecast

Monday 24 May 2021 08:42 CET | Editor: Claudia Pincovski | Voice of the industry

Luiz Henrique Didier Jr. of Bexs Bank reveals data and insights from Brazil’s ecommerce segment and its trends for the future

2020 was an extremely challenging year, especially for the more traditional and less digitised businesses. The year of extreme growth for the ecommerce industry, as everyone was forced to concentrate consumption at home. In Brazil, ecommerce sales grew 41% compared to 2019, adding BRL 87.4 billion in revenue, an amount driven especially by the increase in the number of orders and the greater contribution of purchases by cell phones. More information about this can be found in Webshoppers 43 Ebit | Nielsen & Bexs Banco.

The evolution in the number of new e-shoppers

The high growth of ecommerce in 2020 was due to the migration of consumption from physical stores to the digital world, leading more than 17 million Brazilians to have their first online shopping experience, representing a 23% growth.

The average overall purchase receipt was BRL 452, an 8% variation compared to 2019. An interesting data is that the average ticket between recurring and new consumers is quite similar, unlike previous years where the gap was expressively larger. 

As shown in the data above, this new consumer market has arrived permanently in the digital world and has contributed to doubling the share of ecommerce in the overall Brazilian retail market, from 5% to 10%, an attesting fact that there is still a large market to be explored.

M-commerce

Data from Webshoppers show that in 2020 Brazilians used their smartphones a lot in ecommerce. M-commerce accounted for 52% of overall sales, with a total revenue of BRL 45.9 billion, a 78% growth compared to 2019. Stores are increasingly offering fluid and integrated experiences between desktop and mobile, such as using apps that bring a customised experience and payment methods that make checkout easier. Therefore, m-commerce has a great growth trend in the coming years.

Seasonal dates

Another important highlight brought by the study was related to retail seasonal dates, which accounted for 34% in the overall revenue in 2020. We highlight Valentine's Day, which showed the highest growth among seasonal dates, with 91% growth in revenue, at the peak of the pandemic in Brazil. It is worth recalling that Valentine's Day occurs on June 12. Another highlight is Mother's Day, which grew 64% in orders, being the date that brought most new e-shoppers to ecommerce. In addition, Black Friday remained the most important date for Brazilian retail, with more records being broken.

The behaviour of the Brazilian consumer

The Brazilian public is famous for searching product reviews on different platforms; furthermore, they are heavy users of social networks. An interesting fact shown by the Ebit | Nielsen study is related to the search sites and social networks being the main way to start buying products. For Home and Decoration items, for example, both channels are the start of 55% of all sales. For Clothing and Footwear, it is the start of 44%, followed by Perfume (38%), Petshop (33%) and Pharma (30%).

Brazilians love free shipping

Another very important factor in Brazilian buying path is related to freight. Brazil is the fifth largest country in the world, and distances between stores and customers can be very long, and freight cost very high. A free shipping experience is proven to increase conversion into sales statistics. In the Ebit | Nielsen survey, 70% respondents pointed to freight cost as an opportunity for improvement, thus being the most sensitive issue for e-shoppers.

Cross-border ecommerce – the great sensation among Brazilians

Despite the high dollar value since the beginning of the pandemic scenario and the volatility of the real, cross-border ecommerce continues to grow significantly. Even with these factors, international products continue to be worthwhile and competitively priced. In addition, Brazilians love novelties and acquiring goods that are not easily found in the local market. The Webshoppers study showed that the cross-border segment grew by 76% in revenue and 52% in the number of orders compared to the previous year.

71% out of the nearly 90 million Brazilian e-shoppers made purchases on international sites in 2020, up from 58% the previous year. Some cross-border players remained strong in Brazil, such as AliExpress, Amazon and Wish, but in 2020 new entrants emerged with great prominence and accelerated growth, such as Shopee and Shein, which made heavy investments in traditional and digital media to impact Brazilians.

The major successful categories on international sites were Electronics, Fashion & Accessories, IT and Home & Decor.

Ecommerce trends for 2021

Webshoppers has presented a forecast for 2021 and a growth of 26% in revenue, reaching BRL 110 billion. The study also pointed out a growth trend in the number of orders and average ticket, of 16% and 9%, respectively.

Importance of local payment methods and the Pix

In fact, ecommerce is an increasingly present reality in the daily lives of Brazilians, and this trend will not recede. International sites are a sensation among Brazilians, who are avid for innovation and competitive prices. However, it is necessary to adapt payment means to the local reality, which is specific and quite representative, as only 5% of Brazilians have an international card. The overwhelming majority use local cards, bank-issued invoices, and the newest instant payment tool called Pix. In just six months, Pix became consolidated in the lives of more than 87 million Brazilians, while only 52 million people have local credit cards, a data that draws attention and sets a trend for the payment ecosystem.

In 2021, the country is still facing the impact of the pandemic, so the adoption of more digital and contactless solutions in everyday life is accentuated. Ecommerce and instant payments are definitely the future for retail in Brazil.

About Luiz Henrique Didier Jr.

With over 25 years of experience in leading financial institutions in Brazil, Didier’s fields of expertise include innovation in payment processing, marketing, product and business development and Brazilian foreign exchange regulations. At Bexs Bank, his main challenge is to bring innovation and technology to facilitate, through payment transactions, access to global goods and services for Brazilians and to the best Brazilian goods and services for the world.

 

About Bexs Bank

Bexs Bank is specialised in international payments processing and FX transactions for global ecommerce, SaaS, and investments. Through a unique API Platform, our solution provides the collection of Brazilian currency via local payment methods, helping both big and small companies to connect with customers in the digital world and to expand their customer base geographically.

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Keywords: ecommerce, data, customer experience, retail, payment methods, checkout optimisation , m-commerce, banks, cross-border ecommerce
Categories: Payments & Commerce | Ecommerce
Countries: Brazil
This article is part of category

Payments & Commerce