Brazilian e-commerce expected to grow 18% in 2020

Online sales should generate 106 billion reais this year, according to local trade bodies.
Written by Angelica Mari, Contributing Writer

E-commerce sales in Brazil should reach 106 billion reais ($24.6 billion) in 2020, the equivalent of 18% growth in relation to last year.

According to the Brazilian Electronic Commerce Association (ABComm) the average ticket for online sales will be 310 reais ($72), with 342 million orders placed by approximately 68 million consumers.

Marketplaces should be the main driver for the predicted increase, accounting for 38% of all orders placed online. Purchases through smartphones should represent 37% of all e-commerce transactions.

According to ABComm, there should be about 135.000 e-commerce businesses operating in Brazil by the end of 2020. These will be mainly micro and small companies.

If the trade body's forecast is confirmed, 2020 will be the first year e-commerce revenue in Brazil will exceed the 100 billion reais mark.

The findings by ABComm are in line with separate research by DHL, which suggests that e-commerce in Latin America will grow by 22% by 2021, up by 25% in Mexico and 17% in Brazil.

While large players such as Brazil tend to pave the way when it comes to broadening access to e-commerce, there are bottlenecks to e-commerce in the region, such as slow customs clearance, congestion and sub-standard infrastructure for last-mile delivery, in addition to the complexity of reverse logistics processes for returns.

According to Forrester Research, consumers in Argentina, Brazil, Chile, Colombia, Mexico, and Peru will spend $129 billion online by 2023, representing a compound annual growth rate (CAGR) of 22.3% from 2018.

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