With online retail sales totaling close to $28 billion in 2018 and expected to reach $39 billion by 2022, the eCommerce opportunity in Brazil cannot be ignored.
More specifically, thanks to the expansion of consumer credit in Brazil and an increasing trust in mobile commerce, there is a significant opportunity for sellers across the globe to capitalize on this growing market.
Which raises the questions; What is there to know about selling in Brazil? And what are the top Brazilian marketplaces to list on?
Below, we have answered this as best we can, by providing some top tips for reaching Latin America's biggest eCommerce market, as well as the top sites worth selling through.
So, what are the best selling sites in Brazil?
Well, as with any marketplace, it will depend on what you sell, but to help you get started we have listed the most popular ones below.
With a presence in 13 different countries, Mercado Livre - also spelt Mercado Libre in certain countries - is one of the most popular sites in Brazil, making it one worth considering.
In fact, in terms of visitor numbers, the marketplace had the highest of all Brazilian retail sites in 2018.
Now if you're looking to sell on Mercado Livre from a country other than Brazil, it's worth noting that they offer a Cross-Border Trade program, making the process of listing on the marketplace much easier.
With just one seller account, you will also be able to list on their Mexican, Argentinian and Chilean sites.
When it comes to fulfilling the orders placed on these sites, you will have the option of using one of their partner carriers (currently available only to sellers in the US and China) or their own fulfillment service which is available for orders made in Mexico.
Alternatively, you can take a look at this list of global fulfillment services.
Americanas.com is another popular online retail site in Brazil, with more than 200,000 products listed across a wide range of categories, from homeware, fashion and consumer electronics, to books and baby products.
Owned by Brazil's largest web merchant, B2W Digital Inc, Americanas.com has over 45 million monthly visitors.
That's not all though.
The technology used by the marketplace provides a highly optimized checkout, advanced search functionality and SEO capabilities. The site also enables a high level of security, with fraud analysis conducted at the time of purchase.
To apply to sell on Americanas, merchants are encouraged to submit a supplier registration form, where they will then be assessed by the marketplace's commercial team.
Also owned by B2W, Submarino.com operates in a similar way to Americanas.com.
More specifically, it makes use of the same innovation and technology, making it another site to consider if you're looking to sell into the Brazilian eCommerce market.
Extra.com is another marketplace worthy of consideration, with over 26 million visitors each month, purchasing across a wide range of product categories.
The site is owned by leading eCommerce player Cnova, who also operate French marketplace Cdiscount, as well as other Brazilian sites including Casas Bahia and Pontofrio.
With regards to the cost of selling on Extra.com.br, there are no monthly costs or membership fees, just a simple commission structure.
As with many other Brazilian marketplaces, customers on this site do also have the option to make their payments in installments - something worth keeping in mind.
Casas Bahia, another Cnova marketplace, has a strong recognition in Brazil, with more than 17 million visitors to the site each month.
While Casas Bahia predominantly specializes in furniture and home appliances, that's not all it sells and merchants can also list products such as sports and recreation goods, clothing, watches and health and beauty products.
Brazilian shoppers will have certain expectations and you will need to do thorough research into this market before selling there.
Below, we have listed some of the top tips for selling into Brazil based on consumer expectations.
Payment preferences is a key factor to consider, with more than 30 payment options available in this market.
As a rough guide, around 73% of all eCommerce transactions are made through a credit card, 18% by Boleto Bancario, which is similar to an invoice issued by a bank, and the remaining 9% of transactions are made using alternative payment methods.
The good news is that by selling through a marketplace, you won't need to worry too much about this, although it does pay to be aware of what these options are.
It's also relatively common for Brazilian shoppers to finance their purchases by paying in installments, with many marketplaces supporting this.
If you're thinking about internationalizing your website and selling directly into Brazil without the support of a marketplace, it could be worthwhile offering credit terms.
A payment service provider, such as PagBrasil, allows international merchants to offer up to 12 installments and provides an advanced pay-out of the entire payment amount, assuming 100% of the risk if a customer fails to pay.
While we have listed many of the Brazilian marketplaces above, another way you can reach this market is by using eBay's Global Shipping Program (GSP).
With over 200 million Brazilian shoppers visiting eBay, representing 36% of all online buyers in South America, there is a huge opportunity for simply enabling international shipping to Brazil through your domestic eBay listings.
GSP will then take complete responsibility for the fulfillment of your product once it arrives at their fulfillment center, and will handle customer inquiries and complaints regarding the shipment or delivery of the product.
In other words, this option offers a great way to test the waters before listing on a marketplace.
Brazil is still very much a developing eCommerce market, and as such there are still some challenges to the country’s logistics infrastructure.
We would therefore recommend that you identify a reputable logistics partner that is familiar with delivery in Brazil. Here's a list of global fulfillment services that may be able to help.
It is worth noting that returns rates in Brazil are lower than many other countries at around 4%. That said, it is still worth having a plan in place to simplify your international returns process.
Expanding your business across Brazilian marketplaces and other global sites is challenging at the best of times. That's why exploring your opportunities with automated inventory management software can being your business huge benefits, such as regaining complete control over your business.
A modern inventory and order management system facilitates global expansion by enabling you to sell across hundreds of sites and stores all from one centralized location, automatically updating and synchronizing your stock levels to prevent stock outs and overselling.
What's more, such a solution brings efficiency into your business and streamlines your operations in every area, from order management to stock control, right through to shipping management and reporting.
If one thing's for sure, it's that the benefits of multi-channel inventory management software are bountiful.
Unfortunately, tax is a complex matter in Brazil, with taxes on imports ranging from 30% up to 120%, and it is important that you understand the total import costs to determine your pricing.
That said, with huge opportunities in the market, it is still one that should be considered as part of your international growth plans.
All in all, Brazil is a great option for any merchant looking to expand into a new market. In fact, despite its few eCommerce challenges, it is a rapidly evolving market with significant opportunities for success.
Speak to us to find out how Linnworks can connect and automate your commerce operations so you can capture every revenue opportunity.