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Marketers’ Roundtable: The Biggest Opportunities in Brazil’s Ecommerce Market

How to navigate the growing and challenging space

Felipe Schepers
COO and Co-Founder
OpinionBox
Maurício Salvador
President
Associação Brasileira de Comércio Eletrônico (ABComm)
Thoran Rodrigues
CEO
BigData Corp.

Brazil will account for nearly half of the $53.20 billion in retail ecommerce sales in Latin America this year, according to eMarketer's latest forecast. It will remain the region's largest ecommerce market for the foreseeable future, giving retailers plenty of opportunities to play in the space—but ecommerce success in Brazil also comes with a slew of challenges.

eMarketer’s Matteo Ceurvels spoke with three local experts about what retailers should consider as they develop an ecommerce strategy for Brazil and the biggest opportunities for ecommerce players in the coming years. These interviews were conducted as part of our August report, “Latin America Ecommerce 2018: Digital Buyer Trends for Argentina, Brazil and Mexico.”

eMarketer:

Brazil has had a turbulent political environment these past few years. Has it affected ecommerce growth at all?

Felipe Schepers:

Yes, it has. The economic crisis has taken money out of the market, impacting the economy as a whole. But, on the other hand, it’s been able to bring about a change in consumer behavior. Now, consumers are more aware of issues concerning prices and promotions. As a result, their interest in trying out ecommerce to find the best deals has greatly increased.

Maurício Salvador:

Yes, the political situation has greatly influenced the Brazilian economy. For as long as I can remember, Brazil has always had political instability—though there have been some more stable moments, too. This directly affects the economy since there is no economic policy geared toward incentivizing consumption.

There are also other indirect issues. For example, the recent truckers’ strike this past May caused more than 3 million packages ordered online to arrive with significant delays. This has further reminded consumers of the country’s many infrastructural challenges.

Thoran Rodrigues:

Yes, of course. One of the main reasons that’s motivated people to shop online rather than in physical stores is price, and the price difference for products sold online vs. in physical stores is largely related to economic factors. For example, the security situation in the state of Rio de Janeiro has hampered the process of being able to deliver items that were ordered online. This has, in turn, increased shipping costs and delivery times, causing people living within the state to make fewer online purchases.

eMarketer:

Like most developing countries, online retailers face a number of challenges. What are some of the main ones you’ve seen in Brazil?

Interview conducted on July 3, 2018