eCommerce in Brazil — How to Sell Online on The Brazilian Market

A Fast-Growing Digital Commerce Market

With a large population of over 211 million, 34% of which constitutes a relatively younger generation (36 to 50 years of age), Brazil is without doubt considered one of the most economically robust countries on the South American continent.

Digital buyer penetration in Brazil from 2017 to 2024.

How international eCommerce businesses deal with the challenges of the Brazilian market

Understanding and catering to Brazil’s unique payment preferences, wisely navigating through duty and banking requirements, as well as aggregating, consolidating, and mapping local audiences for diversified marketing is what cross-border sellers need to start doing to wrestle market share away from giant retailers.

Largest Latin American Mobile eCommerce Market

Brazil’s 150 million mobile phone users, in addition to the country’s high internet penetration rates, make it Latin America’s giant for mobile eCommerce. Brazil’s preference for conducting online purchases through mobile phones is a relatively recent trend. Just in 2012, there were only 1.3% of online transactions made through smartphones. Fast forward to the end of 2019, and that number has blown to a staggering 43.1%.

Mobile commerce as percentage of total online shopping transactions in Brazil in January and June from 2011 to 2019.

Pandemic Drives Buyers and Sellers Online

The onset of the Covid-19 pandemic saw an increase of Brazilians turning to digital commerce for their needs, both among B2C and B2B groups. End consumers flocked online to purchase essential and discretionary goods, driving orders up 70% in 2020 versus the previous year.

Subscriptions Are on the Rise

Did you know that Brazil spends more than $200 million per year on recurring goods and services?

How Brazilian Shoppers Like to Pay

Distribution of eCommerce spending in Brazil in 2019, by payment method.

Credit Cards Installments

Credit cards are the leading form of payment in Brazil’s economy, but that’s not all. Paying in installments is something local shoppers expect to have as an option either in brick-and-mortar retail stores or online.

Boleto Bancário

Boleto is one of Brazil’s official payment methods that’s regulated by the Central Bank.

The local currency commands

Brazil’s strict currency regulations make it illegal for retailers to publish prices in U.S dollars. As a result, most transacted purchases occur in the local currency Brazilian Real because using any other currency for this purpose is extremely complicated and costly.

eWallets — PayPal, Apple Pay, Pix, Google Pay

Popular local and global online payment platforms are quickly growing their market share among Brazilian shoppers.

Most popular payment methods used for mobile purchases among mobile eCommerce users in Brazil in 2021. Credit card 64%, Boleto bancario 21%, Digital Wallet 12%, Others 3%.

Brazilians Lean Towards Localized Checkout Experiences

With five distinct regions, Brazil has a wide diversity in terms of its many cultures and languages. This is why Brazilians usually like to go for fully localized, native stores that target their specific demographic group.

Stay Up to Date with the Compliance Landscape

As far as data privacy is concerned, the Brazilian General Data Protection Law (‘LGPD’) is the one regulating the processing of data in public and private sectors. The LGDP was passed in 2018 and entered in effect in September 2020, and is at present enforced by the Brazilian Data Protection Authority (‘ANPD’).

Closing Words

Despite the few challenges that regulations, requirements, and regional diversity pose to cross-border sellers, Brazil’s demographic factors, as well as growing trends in the nation’s online preferences make it a lucrative region to expand one’s presence too. Finding a partner to help you overcome these hurdles is the smart way forward, allowing you to focus on marketing and customer experience.

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2Checkout (now Verifone)

2Checkout (now Verifone)

2Checkout (now Verifone) is the leading all-in-one monetization platform for global businesses built to help clients drive sales growth across channels.