World Economy

Brazil Ecommerce Growing

Brazil Ecommerce GrowingBrazil Ecommerce Growing

An economic and political crisis has hit Brazil during the last few years. Because of rising unemployment and high inflation, Brazilian consumer consumption has greatly decreased.

According to Brazil’s National Industry Confederation, a non-profit organization that represents Brazilian industry, 59% of Brazilians have experienced a loss in purchasing power, which is forcing consumers to adapt to a new economic situation, Practical Ecommerce reported.

Consequently, the slowing economy in Brazil has affected overall growth projections of online sales in Latin America. According to eMarketer, retail sales growth in Latin America slipped from 5.5% in 2014 to 5% in 2016.

On the other hand, it doesn’t mean that Brazilians have stopped buying completely. They are just more cautious. Before deciding to buy a product or a service, they are searching online for more information, comparing prices and features.

Despite the crisis, ecommerce sales remain robust in Brazil. In the first quarter of 2016, revenue from ecommerce reached R$9.75 billion ($3.14 billion).

Approximately 39 million Brazilian consumers—out of a total population of roughly 200 million—purchased products and services online in 2015, according to Ebit, which also reported 2015 retail ecommerce revenue of R$41.3 billion ($12.8 billion), representing 3.3% of total retail sales.

An eMarketer forecast projects Brazil as the leader in Latin American ecommerce sales through 2019.

The primary law regulating the purchase and goods and service online in Brazil is Decree No. 7962, approved in 2013. There is also the Consumer Protection Code, which applies to brick-and-mortar and ecommerce retail sales.