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by taushiqur
Tips
for Selling in Brazil
Understand
Consumer Behaviour in Brazil
As with any market, consumer
behaviour will differ significantly and prior to selling into a new territory,
you will need to do thorough research.
While the leading Brazilian
marketplaces will have their own marketing and advertising options, and provide
you with the ability to optimise your listings for increased visibility, if you
are selling into Brazil from your own eCommerce site, it’s worth keeping in
mind that Brazilian customers tend to start their product search on a search
engine, and as such you should consider paid search options.
It's also worth considering that the
most commonly purchased items include apparel, shoes, consumer electronics and
books.
Research
Payment Options
Payment preferences are also a key
factor to consider, with over 30 payment options available in this market. It
has been found that around 73% of all eCommerce transactions are made by credit
cards, 18% by Boleto Bancario, which is similar to an invoice issued by a bank,
and the remaining 9% are from other payment methods.
The good news is that for
marketplace selling, you will be limited to the options that the marketplace
supports, however you will need to investigate what these options are and what
you need to know and do to prepare for selling into this market.
You should also be aware that it is
common for Brazilians to finance their purchase by paying in instalments, and
you will also find that the majority of marketplaces will support this.
As such, if you are selling directly
into Brazil without the support of a marketplace, offering credit terms will be
extremely beneficial to your business. We would, however, recommend investing
in a payment service provider such as PagBrasil, which offers international
merchants up to 12 instalments and an advanced pay-out of the entire payment
amount, assuming 100% of the risk, should a customer fail to pay any of the
instalments.
Test
the Waters With eBay GSP
While we will cover some of the
dedicated Brazilian marketplaces below, another way to reach this market is
through eBay’s Global Shipping Programme. With over 200 million Brazilian
buyer’s 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 listings. What’s great about eBay GSP is that they
will fulfil your products, and will handle customer queries, taking full
responsibility for any complaints regarding the shipment or delivery of the
product(s).
SEE ALSO: Amazon FBA & eBay GSP: What You Need To Know About These
International Fulfilment Services
Find
a Reputable Logistics Provider
Brazil is still very much a
developing market in the eCommerce landscape, 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. It is also recommended that you effectively track your products.
What is certainly beneficial about
this market, is that returns rates tend to be low at 4%, compared to other
international markets, however as with anything this could of course change
over time.
Understand
the Tax Structure
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.
The
Top Brazilian Marketplaces to Consider
Mercado
Livre
Mercado Livre
operates in 13 different countries, largely in Latin America, and is one of the
most visited sites in Brazil, making it a great marketplace to consider.
The marketplace itself is referred
to as the eBay equivalent in Brazil, and covers a wide range of product
categories, including vehicle accessories, clothing, consumer electronics,
sports and fitness equipment, and health & beauty.
It also has a range of options
available to sellers, including Mercado Shops, which is their eCommerce
solution, enabling merchants to create their own website, which is integrated
with the marketplace and social networks including Facebook and Twitter. There
is also the opportunity to advertise on their site, through their Product Ads
system.
Mercado Livre further operate a
safety payment system, MercadoPago, which is a benefit to both sellers,
particularly international sellers, as well as the customers themselves.
Specifically, by adding MercadoPago in your listings, as a seller you can
enable buyers to choose from a range of alternative payment methods.
Americanas.com
Americanas.com is
another popular online retail site in Brazil, with more than 200,000 products
listed, across a wide range of categories – homeware, fashion, consumer
electronics, books, baby products and so on.
Owned by Brazil’s largest web
merchant, B2W Digital Inc, Americanas.com has over 45 million monthly visitors,
and provides a high-quality technology platform, consisting of a highly
optimised checkout, search functionality, SEO capabilities and catalogue. The
site also enables a high level of security, with fraud analysis conducted at
the time of purchase.
To apply to sell on Americanas.com,
merchants are encouraged to submit a supplier registration form, where they
will then be assessed by the marketplace’s commercial team.
Submarino.com
Due to being owned by the same
company as Americanos.com (B2W), Submarino.com operates in a very similar way. Its
innovation and technology make it a popular platform for reaching a Brazilian
customer base, and with an extensive range of product categories – consumer
electronics, fashion, homeware and even hotels and flights – it could be
another great marketplace to consider.
The marketplace also operate a
Submarino Card MasterCard, available to customers across Brazil, and the card’s
many benefits further help to entice customers to the site.
Extra.com
Extra.com is another marketplace worthy of
consideration, with over 26 million visitors per month, purchasing across a
wide range of product categories. The site is owned by leading eCommerce player
Cnova, who also operates leading French marketplace CDiscount, as well as other
popular Brazilian marketplaces such as Pontofrio and Casas Bahia.
There are also no monthly costs or
membership fee, however you should keep in mind that like with many other
Brazilian marketplaces, customers on Extra.com do have the option to make their
payments in instalments.
Casas Bahia
Casas Bahia, another
Cnova marketplace, has a strong brand recognition in Brazil, with over 17
million monthly visitors to its site. While Casas Bahia traditionally
specialises in furniture and home appliances, like the other aforementioned
sites, the marketplace does also sell a wider range of products, including
sports and recreation goods, fashion, watches and health and beauty products.
Ultimately, Brazil is a great option
for any merchant looking to expand into a new market. Despite its challenges,
it is a rapidly evolving market with significant opportunities for success.
LEADING PLAYERS
Leaders in the ecommerce market are taking note of the Brazilian market’s
explosive growth, and they are expanding rapidly in the country. While the
majority of Brazilians shop online on local country websites, they are more
comfortable shopping on foreign sites than consumers in Asia and Europe are, on
average. According to Statista, 23% of Brazilian consumers shop on US-based
websites versus only 9% of European consumers.
MercadoLibre, the leading ecommerce retail company in Latin America, reported a 17.1% increase in net revenues in 2015. Brazil accounted for nearly half of that, US$290.6 billion out of US$651.8 in total. MercadoLibre had seen 45.22 million unique visitors in Latin America during the month of June 2014. eBay, which owns 18.4% of MercadoLibre’s total common stock, is also in the top 10 online retailers in Latin America. B2W Digital, a Brazilian company that is owned by Lojas Americanas, is the second-most-popular online retailer in Latin America.
Amazon entered the Brazilian market in 2012, first with only e-books. Nearly 13 months later, the company began selling print books in the country. According to ecommerce research firm Internet Retailer, in 2013, the Brazilian-led Latin American market was the fastest growing foreign segment for Amazon.com.
Magazine Luiza, one of Brazil’s largest retailers, has taken advantage of social media, particularly Facebook, to sell products and generate revenue. This connected, social way of selling, known as “F-commerce” also helps to build consumer loyalty due to the candid, comfortable nature of the experience. Magazine Luiza reported slumping brick-and-mortar sales in the fourth quarter of 2015, although its ecommerce sales increased by 19.1% during the period.
Iguama, a Latin American, cross-border ecommerce mall, has recently hired former senior executives from Borderfree, a technology logistics company that allowed businesses to sell products internationally (Borderfree was acquired by Pitney Bowes in May 2015 for $395 million). Iguama intends to expand its cross-border online sales throughout Latin America.
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