With a high proportion of affluent, net-savvy consumers and a strong and stable economy, ecommerce in Brazil is flourishing with both local and international businesses investing in the opportunity.
Many countries in the world, which are embracing ecommerce and the opportunities that arise from it, but few are better positioned for growth than Brazil. A rapidly expanding economy, many years of social and political stability, high levels of disposable income and a well-established online framework all contribute to an attractive area for domestic and overseas investment.
The Growth of ecommerce in Brazil
Brazil’s ecommerce market has risen impressively in recent years, with a staggering annual compound growth rate of 43.5% over the past six years. In monetary terms, its value has increased from around R$1.7 billion in 2004, to roughly R$18.7 billion in 2011, as illustrated in the graph below. Experts are forecasting ecommerce in Brazil to triple in volume by 2015, by when it will hit R$50 billion.
Benefits for ecommerce websites in Brazil
The growing Brazilian ecommerce market is a lucrative and attractive place for potential investors from all over the globe. In 2011, around 5% of all retail transactions in Brazil took place on the Internet, and this figure is expected to have doubled by 2014 (Source: e-commerce.org, Apr 2012). Many of the world’s major Internet-based corporations have been quick to seize an opportunity to establish themselves at this relatively early stage, allowing them to become influential market leaders at a crucial period of the country’s burgeoning economy.
The growing popularity of retail sites in Brazil is evidenced by the fact that visits to these virtual stores are on the rise; from 2010 to 2011 they rose by 20%, and the momentum is showing no signs of easing.
Brazilian online shoppers have embraced such benefits of shopping online, and the graph below shows the number of Internet shoppers rise remarkably.
The Rise of Retail eCommerce Sales in Brazil
Brazil’s ecommerce retail statistics in 2011 revealed the following highlights:
- A 24% increase in the volume of goods purchased online versus the same 6 month period in the previous year;
- eCommerce businesses enjoyed an impressive 26% increase in earnings over the same period;
- 4 million people bought for the first time online;
- A staggering 81% of people accessed the internet with the intention to make a purchase;
- By 2016 retail ecommerce sales in Brazil are forecasted to grow from R$18.68 billion to R$33.74 billion.
About allpago international
allpago international (www.allpago.com) operates as a payment gateway in Brazil serving merchants and payment service providers with its products and services.
allpago‘s features include one-click payments, recurring payments, instalments, dynamic descriptor and mobile payment solutions. The companys html 5.0 code allows multiscreen and is as easy to implement into the store through the “plug and pay” feature. Furthermore, the company offers a fully integrated Risk Management Solution with more than 70 checks. allpago has recently become the first LATAM payment gateway of the Merchant Risk Council (MRC).