E-commerce Boom in Brazil Brings Opportunities
The heart of Latin America’s recent e-commerce growth lies in Brazil.
The country has a population of over 200 million and retail e-commerce sales are expected to be up by almost 20% this year. By the end of 2015, it’s been estimated that nearly $20 billion in sales will come from Brazil alone.
It’s time you eliminate all the reasons why you stopped or never started shipping your products to Latin America – and start tapping into the rewards of Brazil.
Here’s some information to get you started:
- Youthful generation. More than 40% of Brazil’s population is between the ages of 25 and 54, with an average age of 30 years old. It’s been projected that in 2015 over 36 million Brazilian consumers will purchase products online, with nearly half of online shoppers being between 18 to 34 years old.
- Brazil is highly connected. Over half of the population spends more than 27 hours per month on their computers – and 88% of Brazilians use their computer for online purchases. Only 8% use their smartphone and 4% use a tablet.
- Social media is the best tool for marketing to Brazilian shoppers. In fact, 87% of internet users belong to a social network. This is the first place consumers go to find out about the latest products and promotions.
- Language is a key driver. In Brazil, 99% of the population speak Portuguese. In order to optimize your marketing strategies, it’s important to become local, such as investing in website translation.
- Consumers have a desire for western products. The price of goods in Brazil are traditionally higher & it’s not uncommon for products to be up to 3x the amount when compared to products from international websites. Also, many products have not launched locally or they have limited supplies – all reasons why 25% of consumers shop cross-border, with over 70% of purchases from the U.S. market.
- Brazilians primarily shop for fashion. Fashion apparel and accessories make up 18% of Brazil’s total online sales. Other popular categories include; cosmetics, books, toys/games, shoes, and electronics.
- Low return rate in Brazil. Online merchants can look forward to Brazilian customers because only 15.6% of customers return their order. This is 10% lower than the global average of almost 30%.
- Credit cards are the most popular payment method. Although 54% of online purchases are made using a credit card, there is a more preferred payment method in Brazil. In 2014, the emerging local invoice-based method of payment, Boleto Bancário, made up 20% of online purchases – and is Brazilian shopper’s most preferred payment method. Brazil is also a top supporter for using digital currencies as a way of shopping online & over 60% of consumers agreed they would use it.
- Shipping to Brazil is simple. There are several ways to ship to Brazil, and at a low cost. All you need to do is determine how fast you want it delivered.
Brazil is dominated by young, tech-savvy online shoppers – and we’ve provided you with information to make it that much easier for you to expand your global business.
Now it’s up to you to take advantage of it.
The only question is are you ready?
If you’d like more information on how you can get started, feel free to connect with us.