Brazil, which has a population of 208 million and boasts Latin America’s largest economy, holds huge e-commerce potential. Despite the economic hardship Brazil is facing, online sales are still on track to grow 12% in 2017. And as its economy recovers, the country will likely see a return to the 20-28% e-commerce growth rates that were seen before the crisis. Moreover, as e-commerce only accounts for about 3% of total retail sales, online retailers will have a major opportunity to grow in Brazil. Overall, total retail sales are expected to hit $612 billion by the end of 2019, and e-commerce will reach nearly $19 billion.
Major E-Commerce Players In Brazil
The current landscape is dominated by regional leader MercadoLibre, an online marketplace that sells a variety of products, and a few other international companies that have footholds in the country. Other global e-commerce players, like Amazon and Alibaba, have small presences in the country, and have yet to make huge pushes in Brazil. However, these companies are known for disrupting the markets they enter — Amazon in India and Alibaba in Southeast Asia, for example. As such, if these companies decide to pursue this market, we could see major changes in market share.
MercadoLibre. MercadoLibre — known as Mercado Livre in Brazil — generated 54% of its 2016 revenue from the country. Its sales in Brazil increased 75% year-over-year (YoY) in Q2 2017, while units sold grew 57% YoY. The e-tailer is currently testing some logistics services, including picking up goods for sellers and negotiating prices with transporters. Additionally, the company has been making a huge push into [...]