Between 2017 and 2022, Brazil’s e-commerce sector saw an impressive 182% growth, with total revenue reaching R$ 169.6 billion ($34.7 billion).
Online orders also increased by 163%, amounting to R$368.7 million ($75.2 million) in 2022.
In 2022, out of 83.8 million Brazilian online shoppers, 58% were women and 42% were men. Women thus showed greater participation in online shopping.
The Southeast region of Brazil led in online shopping activity. This region includes Rio de Janeiro, São Paulo, Minas Gerais, Espírito Santo, and Belo Horizonte.
It accounted for 62 million online shoppers. Following it was the Southern region, with 14 million users.
Maurício Salvador, President of ABComm attributed the Southeast’s dominance to higher income levels, dense population, and better internet quality.
E-commerce revenue, Salvador explained, generally mirrors Brazil’s GDP distribution. Social class and internet quality also influence this.
Poorer internet quality outside major cities reduces online shopping. Salvador also noted the distribution center locations affect shopping habits.
Most centers are in the Southeast and South, impacting other regions’ shipping costs and shopping frequency.
Salvador expressed concerns about new government regulations. These affect foreign digital retailers in Brazil.
He believes they create unfair competition for local sellers. This competition, Salvador fears, might lead to job losses in the local retail sector.
The primary online shoppers in Brazil are aged 35 to 44. The next largest group is those aged 25 to 34.
Elderly and children shop online the least. Almost half the shoppers, 54%, are from the middle class. Those from higher income brackets accounted for 32.4% of 2022’s revenue.
Salvador pointed out that consumers see online shopping as more cost-effective. They compare prices across different stores easily.
This perception, coupled with competitive online pricing, drives e-commerce growth.
Word-of-mouth recommendations also boost e-commerce. First-time buyers sharing positive experiences online encourage others to shop online.
Home appliances lead in online sales, making up 17.5% of total sales. Telephony products and electronics follow in popularity.
The Pandemic’s Impact on E-commerce
The pandemic dramatically changed e-commerce. Many businesses and consumers were initially hesitant to shop online.
However, the lockdowns of 2020 pushed both groups to embrace digital platforms.
Brazil’s e-commerce revenue increased by R$ 39.4 billion ($8.0 billion) from 2019 to 2020. Online orders grew by about 40% in the same period.
Even after physical stores reopened, many customers remained loyal to online shopping. Companies also continued their online presence due to positive results.
In the first half of 2023, e-commerce sales hit R$ 80.4 billion ($16.4 billion). This was a 2% increase over the same period in 2022.
Salvador expects sales during Black Friday and Christmas to significantly impact the second half’s revenue.
The forecast for e-commerce revenue is R$ 7.1 billion ($1.45 billion) during the Black Friday week. This marks a 17% increase from the previous year.
The period includes Black Friday and Cyber Monday, concluding the promotional events.