Insights into the growth of Brazilian eCommerce with payment methods, target audiences, marketing, social media, economy and logistics all profiled

Economy

Brazil is home to 207.65 million people with a total GDP of 3.2 trillion USD and is ranked as the 8th richest country, according to the World Bank GDP per capita rankings. Brazil's GDP per capita is currently 7,495 USD and expected to reach 8,567 USD by 2021.

Digital User Insights

There are currently 66.4 million eCommerce users in Brazil, with an additional 28.2 million users expected to be shopping online by 2021. Four years from now, these 94.6 million eCommerce users will spend an average of 307 USD online.

Dividing internet usage into age groups gives a better picture of the Brazilian eCommerce market – 92% of 16-24 year-olds, 92% of 25-34 year-olds, and 94% of 35-44 year-olds log on daily. The older generations also log on regularly with 45-54 year-olds and over 55s showing a 79% and 81% daily penetration rate, respectively.

Product Categories

Total Brazilian eCommerce revenue across all product categories is 18.7 billion USD, and is expected to grow to 29 billion USD by 2021. Fashion is currently the leading product category in Brazil, accounting for 6.36 billion USD market share, followed by Electronics and Media, which generates 5.16 billion USD in sales.

By 2021, Fashion will still be the most purchased online category, with a value of 10 billion USD, and second favorite, Electronics and Media, is expected to be worth 7.8 billion USD.

Logistics

In 2016, Brazil was ranked 55th in the World Bank Logistics ranking.

Preferred Online Payments

69% of Brazilian shoppers use credit cards when shopping online, and a further 24% prefer Boleto Bancário.

Where does Brazil buy from?

China supplies Brazil with 30 billion USD in imports – ranging from petroleum to cars. Brazil's other key import partners are the US (26.4 billion USD), Germany (10.5 billion USD), Argentina (10.1 billion USD) and South Korea (5.47 billion USD).

Internet and Device Usage

Internet penetration in Brazil is currently 58.3%, and should reach 61.3% by 2021. Smartphone penetration is substantially less (31.1%), but is projected to grow to 39.9% in the next four years.

83% of online shoppers in Brazil shop online via desktop, a stark contrast to the amount of smartphone (8%) and tablet (4%) shoppers.

Marketing

Total marketing spend in Brazil has risen in recent years, as advertisers steadily invest more in digital advertising. In 2016, total ad spend reached 13.72 billion USD.

Social Media

Brazil currently has 90.55 million social network users, a figure expected to increase to 111.08 million by 2021, thanks to YouTube, Facebook, Whatsapp and Messenger, which are the leading social networks.

For more market insights, check out the eShopWorld series of blogs covering a range of emerging eCommerce markets. 

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