The e-commerce market in Brazil is continuously growing. Between 2014 and 2019, the total national revenue from online purchases increased from R$ 35.8 billion to R$ 75 billion — an increase of almost 110%. The results are related to online sales of physical goods to private end-users via computer and mobile devices.

Due to the COVID-19 pandemic, e-commerce sales recently reached an all-time high. Especially in April, online channels became the primary or only sales opportunity for many Brazilian retailers. As a result, sales nearly doubled compared to the same month in 2019. According to the Brazilian Chamber of Electronic Commerce (BCEC), figures jumped almost 100% in the period mentioned.

In general, Brazil was ranked as the 15th largest e-commerce market in the world in 2019, ahead of the Netherlands, for example, and only slightly behind Italy.

The Latest Trends in the Brazilian E-commerce Market

A survey by the Brazilian e-commerce consultancy Compre&Confie showed that primarily smaller merchants and those who relied solely on sales through physical stores until the COVID-19 outbreak drove the growth of Brazilian e-commerce during the first five months of 2020.

“It is possible to start selling online quickly and simply, without the need for large investments,” explained Mauricio Salvador, president of the Brazilian e-commerce association ABComm. Additionally, consumers have been more engaged in online shopping for essential products than visiting physical stores due to efforts to prevent virus exposure.

Among the best-performing segments were home office equipment, technology, and communication devices. Other significant categories included furniture and appliances, personal and medical care products, cosmetics, food, and books. “E-commerce is certainly one of the fastest-growing sectors in the [Brazilian] economy,” said André Dias, coordinator of the BCEC metrics committee.

In an additional survey of 1,500 online consumers, fintech Ebanx studied the importance of international online shopping for Brazilians. According to the findings, Brazilians are expected to maintain or even increase their online purchases on foreign websites after the pandemic, focusing on electronics, clothing, and decor items. Additionally, Ebanx recorded a significant increase in streaming and online gaming in Brazil.

The Main Online Stores in Brazil in 2019

Based on 2019 data from the research platform ecommerceDB, the main player in the Brazilian e-commerce market is Magazine Luiza (magazineluiza.com.br) with an annual revenue of $2 billion in 2019. The company focuses on electronics and furniture retail. It is followed by direct competitors Lojas Americanas (americanas.com.br, $790 million, 2019) and Casas Bahia (casasbahia.com.br, $606 million, 2019). According to market experts, these three stores represent about 20% of the country’s total online revenue.

On the other hand, one of the fastest-growing stores recently has been Funidelia (funidelia.com.br). Between 2018 and 2019, the online store recorded a revenue growth of 87%. On its website, customers can buy costumes, accessories, and decor items for carnival or themed parties, for example.

Overall, the average value of purchases made in 2019 was R$ 420.40. This represents an increase of only 0.2% over 2018. Therefore, e-commerce retailers saw a significant increase in terms of purchase volume. The number jumped 22.5% from the previous year, reaching 178.5 million purchases.

The Typical Profile of a Brazilian Online Shopper

According to the latest Neotrust report published by Compre&Confie in 2019, female consumers accounted for more than 52% of purchase orders placed in the country in 2019. However, despite buying more, women spent less. The average value was R$ 371.70 per purchase, while men spent R$ 473.60. Following the explanation of consultant André Dias, this difference occurs naturally, as the products purchased by men tend to be more expensive.

Additionally, consumers aged 36 to 50 were responsible for the highest purchase volume. Those aged 26 to 35 came in second, followed by the age group up to 25 years. Finally, there are customers over 51 years old.