Brazil is the largest country in South America, with a population of over 200 million. It has the largest online retail market in South America. The Internet usage rate has doubled in the past 10 years and is currently about 60%. It is one of the international e-commerce markets that many e-commerce platforms are competing for. Its consumer market has the following main characteristics.
(1) Rapid development of the e-commerce market
Researchers from the Vargas Foundation in Brazil pointed out that with the popularization of smartphones and the further development of mobile payment services in the Brazilian market, the frequency of e-commerce services used by customers in the country will also increase. From 2016 to 2017, the proportion of Brazilian customers using mobile payment terminals increased from 22% to 31%. 38% of Brazilian customers purchase goods online from abroad. The most popular cross-border online shopping products include fashion, electronic products, computers and related accessories. With the development of Brazil’s economy, the frequency of online consumption by residents in the country will continue to grow.
According to data provided by AliExpress, the number of registered members of AliExpress in Brazil in 2017 was nearly 10 million, a year-on-year increase of 68%. The purchasing power of Brazilian customers is also among the top, and Brazilian customers are one of the groups with the highest transaction volume on AliExpress. On November 11, 2016, Brazilian customers placed nearly 2 million orders on AliExpress, a year-on-year increase of nearly 20%.
(2) Brazilian customers pay more attention to “discounts”
Brazilian customers are keen to find discounted products, so they pay more attention to price than delivery speed. Delivery fees affect the purchase decisions of 59% of customers, so nearly half of Brazilian websites offer free delivery. New sellers need to pay attention to formulating their own pricing strategies. Brazil’s return rate is lower than the global level, only 15.6%, while the global return rate is 27.5%. In addition, 37% of Brazilian online shoppers are over 35 years old, so the consumer age in Brazil is higher than that in most e-commerce markets. At the same time, mobile e-commerce in Brazil is also developing rapidly.
In addition, Brazilians generally like to shop through installment payments, which accounts for about 80% of the total transaction volume. According to statistics, 40% of Brazilian households’ monthly income is used to repay installment debts.
(3) Localization of payment methods
Payment is an important part of all transactions. Due to the different stages of financial development in different countries or regions, companies developing the Brazilian e-commerce market need to pay attention to Brazil’s payment transaction habits. There are four most common payment methods used by Brazilians: local credit cards, bank transfers, online banking and cash payments. Credit card transactions are the main method, with more than 60% of transactions being made through credit cards. In addition, some Brazilians prefer to use cash transactions, and it is difficult to apply for credit cards that can be used for cross-border transactions. The payment utilization rate of online credit cards in Brazil is not high.
In addition, the world’s four major credit cards Visa, MasterCard, American Express and Diners Club can also be used in Brazil. Brazilian local credit cards Hipercard, Elo and Aura are also very popular.