The Challenges of the Brazilian Market
The Brazilian eCommerce market has experienced significant growth in recent years, making it an attractive opportunity for businesses looking to expand their online presence. With a population of over 210 million people and a growing internet user base, Brazil offers a large consumer market with great potential. However, entering and succeeding in the Brazilian eCommerce market requires a strategic approach. In this blog post, we will discuss key factors and effective strategies to help businesses succeed in the Brazilian eCommerce market.
Brazilian Market Key Highlights
- User penetration will be 60.3% in 2023 and is expected to hit 66.7% by 2027
- The average revenue per user (ARPU) is expected to amount to US$324.20
- 72% of Brazilian e-shoppers shopped on foreign websites in 2022
- Cybersecurity is still a worry, especially when it comes to online fraud. Because most Brazilians do not have foreign credit cards, international transactions can be difficult for locals and visitors
Brazil’s e-commerce market is growing rapidly
Source – JPMorgan 2022 eCommerce Payment Trends Report Brazil
>>> The eCommerce market in Brazil has been growing at double digit rates since 2017, and is predicted to grow in excess of 9% annually through 2023, reflecting economic pressures caused by COVID-19.
Brazil’s is the biggest e-commerce market in Latin America
Source – PagBrasil – Brazil: one of the biggest eCommerce opportunities in the world
>>> Brazil is the largest economy in Latin America and the 5th biggest country in area and population globally. It is the 4th largest internet market globally, with 150 million internet users ensuring to be one of the outstanding opportunities for online business in Latin America and the world.
Brazil payment types at-a-glance
Source – Xsolla
Brazil eCommerce: Top Tips for Success
Succeeding in the Brazilian eCommerce market requires local
adaptation and a customer-centric approach
Understand the Brazilian Market
Before entering any new market, it is crucial to understand the local landscape. Research and analyze the Brazilian eCommerce market to identify consumer preferences, buying behavior, and popular products. Consider factors such as regional variations, cultural nuances, and local regulations that may impact your business operations.
Localization and Language
Brazil is a culturally diverse country with regional differences in language and preferences. To establish a strong presence, adapt your website, product descriptions to Portuguese, the official language of Brazil. Localization efforts should also consider local payment options, currency in order to provide a seamless experience for Brazilian customers.
Brazilian consumers have diverse preferences when it comes to payment methods. While credit cards are popular, offering alternative payment options such as Boleto Bancário (cash payment), installment plans, and digital wallets like Mercado Pago can significantly expand your growth. Integrating with local payment gateways will make the checkout process more convenient for Brazilian shoppers.
Compliance and Legal Considerations
Entering the Brazilian market requires understanding and complying with local regulations and legal requirements. Brazil has specific rules regarding consumer rights, data protection, and taxation, so it is important to ensure compliance with these regulations. Establish transparent policies to build trust and provide a positive buying experience for Brazilian customers.
Right now, the General Data Protection Act (LGPD) in Brazil is creating a HUGE buzz around data services and cloud computing. This is the first national personal data protection law in Brazil. Your business will have to comply if you complete transactions with Brazilian citizens, even if your company isn’t physically located in Brazil. Here’s the good news: this means that companies all across Latin America will be in the market for safe and secure data.
Providing excellent customer support is crucial for success in any market. Establish local customer support channels, including phone, email, and live chat, to address inquiries and resolve issues promptly. According to a survey by the British Council, only 5% of Brazilians can speak English, and only 1% of those speak it fluently. Therefore, it is vital to offer support in Spanish or Portuguese or to outsource these services to a company that does.
With Nexway, improve your strategy to stay ahead of the competition and capitalize
on the opportunities available in Brazil’s thriving eCommerce market
Brazil is known as a welcoming country for digital business expansion. However, doing business in Brazil is definitely no small task. By understanding the market, building trust, offering diverse payment options, and providing localized customer support, businesses can position themselves for success in the vibrant and growing Brazilian eCommerce landscape. Discover how Nexway experts can help your business navigate the rough waters and help you succeed in Brazil – Contact us.