Not only known for its February carnival and extensive festivities, Brazil is also the largest economy and leading e-commerce market in South America. In fact, globally, the Brazilian e-commerce market is the 9th largest. And while its gross domestic product declined in recent years, it’s still the market selected by cross-border retailers who want to establish themselves in South America. Brazil’s e-commerce market is projected to increase substantially over the next few years and is forecasted to reach over USD 29 billion by 2018.
Companies coming from the US and China are the largest e-commerce merchandisers so far – selling their goods to the estimated 40% of Brazilian online consumers who make cross-border purchases. To complement their carnival wardrobe and perhaps buy the latest hifi speakers for samba music, Brazilians shop from abroad, with the main product categories being Fashion & Accessories and Home Electronics.
The number of online consumers is still relatively low compared to the total number of inhabitants yet the figures are steadily rising – today’s approximately 37 million online shoppers are expected to rise to 47 million within two years. Since Brazil’s population is very young, with a median age of 31 years, the number of Internet users will probably grow rapidly.
The search for attractive prices characterizes the consumer behavior in this market. Value for money is highly prioritized and Brazilian consumers in general are partial to price over delivery speed. The most preferred payment method is by far credit cards. It is very common practice to split payments by credit cards into multiple installments.
Population: 205 million
Currency: Brazilian Real (BRL)
GDP: USD 1.77 billion
Internet Penetration: 65%
Olof Källgren, Market Information Manager, Direct Link
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