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~ Viva Brazil ~

the United States for example. totaling US$ 2.2 billion over 69 million orders. Cross-border
purchases in 2018 represented the same volume of purchases of
Currently, the largest Marketplaces in Brazil already have sales the entire northeastern Brazilian region!
of over 50% of third-party products, some with more than 10
thousand sellers. The fashion and accessories categories remain the leading con-
sumer preference for purchases from non-Brazilian sites, account-
On the other hand, Amazon is consistently considered a threat ing for 36% of all purchases in 2018 (vs. 33% in 2017). In second
to the competition. The company has been taking very planned place, electronics registered a drop of the same 3p.p (from 33% to
and conservative steps and in 2018 diversified the offer of 30% in 2018).The complete list of 5 main categories: Cosmetics
categories, and began to buy and sell its products directly in its and perfumery / personal care (19%), household and decoration
Marketplace (first-party). (18%) and telephony / cellular (16%). It is observed the biggest
fall in the sixth place was computers and accessories. Its share was
Omnichannel 19% in 2017 compared with 15% in 2018.
From 2013, this new trend began to gain traction on the
retail executives’ agendas, mainly due to the popularisation of Aliexpress.com continues to lead sales to Brazil. The site was
smartphones and pressured by the rapid adhesion of different chosen by consumers with 51% of all cross-border purchases in
demographics within the native population. The famous “Mobile Brazil in 2018. It is followed by Wish, whose share jumped from
First” theme has been gaining priority, and bricks and mortar 15% in 2017 to 41% in 2018, moving from the fourth to the
retailers with physical and virtual presence have embarked on a second place in the ranking. Third, Amazon.com (25%) lost 1
long and laborious process of digitising the entire operation to p.p. year-on-year, followed by Ebay, which is down by 5% (19%
be able to implement channel integration, giving consumers a in 2017 vs. 14% in 2018).
unique shopping experience. Today we already have several retail
groups offering initiatives like Buy Online and Pick Up in Store, Recently the state-owned company Correios, responsible for
Apps for purchases, location stores and tracking of purchases for 60% of the deliveries in Brazil in partnership with the airport of
example. It was the Magazine Luiza retailer that stood out the Miami, launched the service CompraFora that offers to its con-
most in this respect. Their actions increased value by more than sumers a mailbox in Miami, and promises to deliver the products
200% in the last 2 years! in Brazil faster and without complications.

Cross-border trade On the other hand, the sale of Brazilian products to consumers
Since 2013 Ebit Nielsen discloses in its report Webshoppers outside Brazil is still getting started. We see very few national
information about the behaviour of Brazilian consumers on inter- brands present in marketplaces outside of Brazil such as Tmall
national sites, following the world tendency that accelerates each in China and Amazon International. This is a great opportu-
year. Major retailers worldwide are natural candidates to become nity that we should explore to balance this great opportunity of
leaders in this market of cross-border trade, as much as the North cross-border trade being an excellent alternative for the Brazilian
American Amazon and the Chinese Alibaba and JD.com. businessman to sell directly to new markets.

In Brazil, from 2013 to 2016, we had a significant increase of What’s in store for the future of digital commerce in Brazil?
e-consumers buying on international websites jumping from Despite the challenges that exist in Brazil, we have great po-
33% to 53%, but in 2016 and 2017 there was a decrease of 5% in tential for growth in digital commerce in the coming years. A
products bought in stores outside of Brazil’s market due to the country with more than 210 million inhabitants and with a great
devaluation of the Brazilian currency Real. geographical extension will certainly require investments in the
improvement of its logistics infrastructure, integration of physi-
The frequency of purchases also decreased from 3.7 times per cal retail with online, use of smartphones for digital payments,
year in 2017 to 3.2 in 2018, as well as the declared purchase greater offer of international products, faster delivery, and others.
intention, which was lower in 2018 (59.9% vs. 66.4% in 2017).
According to the declaratory research carried out by Ebit We will be able to accelerate the participation of e-commerce in
Nielsen, the main reasons given by Brazilian consumers for the the total retail market in the coming years, leveraging inter-
reduction of purchases on foreign websites were the very long national agreements and facilitating the purchase and sale of
delivery times, the rise in the dollar quotation and the conse- products in a global way through cross-border trade.
quent increase in prices (an increase of 14.4% since 2017). The
new taxation of R$ 15 (US$ 3.8) as of August 2018 from the
About the author:
Brazilian state postal company Correios, was also responsible for About the author:
Pedro Guasti was Ebit co-founder and today is Board Member
the internalisation of products purchased outside Brazil. Pedro Guasti is the Founder and Chairman of E-commerce Board at
FecomercioSP - Angel Investor - Board Member Council of Companies like
Council of Companies like Ebit Nielsen and Grupo GS& in Brazil –
Angel Investor at HBSA Angels of Brazil and ESADE BAN Barcelona.
Nevertheless, Ebit Nielsen estimated that 23 million Brazilian Ebit Nielsen and Grupo GS& in Brazil.
e-consumers made purchases in international websites in 2018,

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