E-commerce Consumer in Brazil: Profile and Behavior
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Each year, more and more Brazilians engage with e-commerce. Brazil has the fourth-largest internet market in the world, with roughly 140 million internet users. In addition, the country holds the second position in the global ranking of daily hours spent online – 4h 59min on desktop and 3h56min on mobile devices. That, added to the continued evolution of the e-commerce segment in Brazil, justifies why the e-commerce consumer base in the country is set to keep growing at a fast pace in the years to come.
Recently we have shared some highlights of the Brazilian e-commerce market. Now, we aim to go over the profile and behavior of e-commerce consumers in Brazil.
Who are the E-Commerce Consumers in Brazil?
Throughout 2017, more than 55 million Brazilians purchased online at least once. The number represents a growth of 15% compared to the previous year. Overall, women still purchase online more than men in Brazil. They were responsible for 50.4% of all e-commerce transactions in the country, down from 51.6% in 2016. This indicates that women have carried our 1.4 million purchases than men.
Unlike e-commerce markets in Europe, where the age group that purchases online is more frequently that of people between 19-29 years of age, Brazil has an older age average: 42.2 years old. The majority of the e-commerce consumers in the country are aged 35 and above (37% aged 35-49 and 30% over age 49). This can be justified by the financial difficulties faced by younger individuals in Brazil, who are often denied a credit card – the main means of payment for Brazilian e-commerce – and the huge unbanked population.
Over 63% of the e-commerce consumers in Brazil live in the southeastern area (São Paulo, Rio de Janeiro, Minas Gerais, and Espírito Santo). Next, are the states from the southern region: Rio Grande do Sul, Santa Catarina and Paraná with 16%.
Brazil also has an enormous middle class, which represents nearly 70% of e-commerce consumers. Another highlight is the engagement of the consumers from the lower social-economic class E, who represent 15% of all digital buyers in the country.
What do They Buy and How do They Pay?
The product categories with the highest number of orders are:
- Fashion and accessories – 14.2%
- Pharmacy and cosmetics – 12%
- Household appliances – 10.8%
- Home and decoration – 10.5%
- Telephone / mobile – 9.2%
In terms of revenue, these are the leading product categories:
- Telephone / Mobile – 21.2%
- Household appliances – 19.3%
- Electronics – 10%
- IT – 8.9%
- Home and decoration – 8.4%
Overall, credit cards are the main payment method in the country and account for nearly 60% of all payment transactions. Boleto bancário comes second with 25%, followed by online banking transfer (13%) and debit cards (5%). In 2017, nearly half of the e-commerce consumers have opted to pay on a one-off basis, mainly due to discounts for purchases with boleto bancário, which has no chargeback risk for merchants. However, for buyers who choose to pay with credit card, installment is still king. The average number of installment payments in the country is currently 3.3, down from 3.5 last year. However, when using a credit card provided by the store, the number goes up to 6.4 installments.