South America is one of the most exciting emerging e-commerce markets in the world, and Ecommerce Foundation’s new report, sponsored by Asendia, takes a look at why Brazil could be your business’ next destination.
Brazil’s population is very young, with a median age of 31 years, which means that the number of Internet users is growing rapidly, increasing by 10 million from 2014 to 2015. While the number of e-shoppers is increasing at a more modest rate, the combination of a young population and burgeoning Internet penetration (which still only stands at 64%) indicates that this large country has plenty of e-commerce potential.
Nonetheless, if you are considering Brazil as your next market, there are some factors to think about. Brazil ranks at 122 on the Logistics Performance Index and 116 on the Ease of Doing Business Index, although it does perform far better for E-Government (appearing at 57). How can your e-commerce business overcome these potential challenges and be a success in Brazil?
The report features advice from a range of industry experts, including Asendia’s Maria Gómez-Juarez and Gary Shunk. Their top tips to cross-border retailers include:
- Cost transparency is key, so make sure you consider Brazil’s high import duties when displaying fully-landed costs to potential customers
- Build your checkout so it captures shoppers’ CPF numbers, which is used for taxpayer identification in Brazil
- Support your venture into this competitive market by partnering with experienced logistics providers
Also, think about how you can make your online shop attractive to Brazilian consumers. 46% of e-shoppers buy across borders for appealing offers, while 31% do so for better conditions. 29% buy from a foreign shop in order to choose from a broader range of products, while 36% have bought fashion items abroad at least once.
The Brazilian e-commerce market may have its challenges, but it also offers exciting opportunities for retailers. Download the Brazil B2C E-commerce Report here.