Online sales revenue grows 41% in Brazil in 2020

RIO DE JANEIRO, BRAZIL – Revenues from e-commerce, the buying and selling of products over the internet, grew 41% in 2020, with more than 194 million orders placed by Brazilian consumers in the year. This was the highest percentage increase since 2007.

According to data from the Webshoppers study (Ebit/Nielsen & Bexs Banco), sales totaled about R$87.4 billion in the period, driven by the Covid-19 pandemic.

“The growth of e-commerce was forced by the pandemic in part, because of social isolation and the restriction on opening face-to-face commerce,” Marcelo Osanai, director of e-commerce at Ebit/Nielsen, told InfoMoney. “The Brazilian population has seen that there is another shopping option, accessible and convenient.”

2020 showed some trends for online shopping, which should be repeated throughout the pandemic. Some of them may go beyond the period of social isolation, even. InfoMoney has listed some of the winners in e-commerce over the past year, based on Ebit/Nielsen & Bexs Banco research. Check them out:

1. Smartphone as a sales channel

The growth of smartphone purchases was the biggest contributor to the e-commerce historical year. 55.1% of the transactions were made by mobile devices, adding up to R$ 45.9 billion in revenues. That’s a 79% increase over 2019, and a 176% increase over 2018. These figures do not consider transactions from delivery apps.

2. Free shipping to close the sale

According to the survey, another major factor for consumers was securing free shipping on purchases: 43% of transactions had no shipping cost for the consumer.

3. Shopping accelerated beyond the Southeast

The Northeast had great growth in the segment, with 31.7% of the total 2020 increase coming from consumers in the Northeast. Now, the region accounts for 18.5% of e-commerce revenue in Brazil, double the share seen in 2019.

4. Department and sporting goods stores

Department stores, such as Americanas and Magazine Luiza, concentrated 84.3% of online purchases in 2020. Sporting goods stores, the second most popular segment, generated only 2.8% of sales.

“These are types of stores that have been greatly affected by the restrictions,” Osanai explains. “The alternative for these consumers who were going to the big malls or high street retailers was to look for the same products on e-commerce.”

5. Finding stores through search engines and social networks

Social networks and search engines lead as exponents of consumer products. In the Home and Decor segment, 55% of the industry’s total sales came from consumers finding the stores from these sites. Other sectors benefited by social networks were Clothing and Footwear, with 44% of revenues, and Perfume, with 38%.

Technologies are arriving, but must be focused on the customer

According to Osanai, e-commerce has consolidated itself once and for all in Brazil and will not be abandoned when the Covid-19 pandemic is over. “The physical experience is not eliminated, because it is still a pleasant and different experience. At the same time, e-commerce gives other benefits that traditional retail will never have.”

Now, online stores will look to invest in new technologies to hold consumers. In the short term, Osanai believes in the use of artificial intelligence and machine learning to optimize inventory and supply chain processes.

In the long term, the director of e-commerce at Ebit/Nielsen highlights the entry of virtual and augmented reality. “These new technologies will bridge some of the gap that exists between the real and virtual experience,” he said.

However, there is something that these stores will never be able to leave aside: the focus on the consumer experience. “Without this, we will not be able to retain this customer. E-commerce is here to stay, but there is a lot of work on the part of retailers, vendors, and brands to ensure the recurrence of the consumer through a positive experience at the time of purchase.”

Source: Infomoney