Brazilian E-Commerce Market Is Booming And Creating Growth Opportunities For International Retailers

BR 06/04/18

Sao Paulo

  • 81% of Brazilian online consumers have made an international purchase
  • Brazilian shoppers are making a higher percentage of their online purchases via a smartphone compared to consumers in the United States, Canada and Europe
  • Brazilians demonstrated highest satisfaction with the online shopping experience

Brazil, the fifth largest internet and mobile economy in the world1 is showcasing strong buyer demand for foreign retailers as 81% of Brazilian consumers confirm having made an online international purchase, mainly from China (63%). Sixty percent of surveyed respondents in Brazil cited better pricing as a top reason to make international purchases. These are a few of the consumer insights included in the latest UPS Pulse of the Online Shopper™ global study.

The report by UPS  (NYSE: UPS), a global leader in logistics, and conducted by comScore Inc. (NASDAQ:SCOR), a leader in measuring audiences, brands and consumer behavior across platforms, evaluates consumer shopping habits from pre-purchase to post-delivery and provides insight into online shoppers behaviors and preferences.

“Brazil’s digital buying market continues to present attractive opportunities for online retailers around the world. The country’s e-commerce sector is slated to increase at a 12% growth rate with sales estimated to reach R$ 53.5 billion (more than $15 billion dollars), and more than 60 million consumers expected to shop online in 2018,”2 said Katia Tavares, marketing director for UPS Brazil.  E-commerce allows retailers to overcome geographical boundaries to reach more customers, and provides consumers more choices for products and vendors. This study allows retailers to understand today’s avid Brazilian online shopper, so they can determine the most effective strategies to better meet customers’ demands and preferences.”

Shopping Satisfaction and Multi-channel Purchasing

Shoppers in Brazil have the highest satisfaction (88%) with their online shopping experience than consumers from other regions including the U.S. (85%), Europe (81%), Canada (77%) and Asia (57%).This underscores the importance of why sellers should provide consumers a positive digital shopping journey.

Brazilian online consumers are most satisfied with shopping on desktops or laptops and least satisfied with shopping in physical stores. Brazilians search online and buy online 40% of the time, but they make a higher percentage of their purchases (47%) via multi-channel shopping methods compared to shoppers in the U.S., Europe and Canada.

Personalized Experience

According to the study, Brazilians prefer to have a significantly higher percentage of their orders delivered to an alternate delivery location, increasing from 26% in 2015 to 55% in 2018. Ship-to-store is another preference amongst Brazilian shoppers, where 44% confirmed having used this method at least once in the past year and 67% of those saying they plan to use it more often next year. Retailers should be keen on engaging consumers during in-store pickups, as 58% of these shoppers made additional purchases when physically collecting their orders at stores. This underscores the importance for retailers to provide an excellent shopping experience both online and in-store.

Brazilians are more patient than shoppers in other regions, indicating they are willing to wait, on average, seven days if paying for shipping and 11 days if using free shipping. Among those who have used same-day delivery, 42% say that they shop more often online due to the availability of same-day delivery. Additionally, 68% of online shoppers in Brazil have abandoned a shopping cart due to a lengthy delivery time or no delivery date provided compared to other regions.

The study recommends that online retailers should offer flexible delivery options, such as in-store pickup, alternate delivery location choices, expedited delivery, and service during flexible hours (after 5 p.m. and weekends) to meet Brazilian consumers’ growing preferences for delivery options.

The Mobile Mindset

Mobile usage is trending among Brazilian consumers, as 90% of online shoppers in Brazil use smartphones, the second highest in the region behind Mexico (92%), and higher than shoppers in Canada (81%) and the U.S. (79%).  Smartphone users in Brazil (59%) have made a purchase on a smartphone, up from 40% in 2015. A significantly higher percentage of smartphone users in Brazil (58%), compared to those in other surveyed regions, indicate they will shop more on smartphones relative to the previous year. 

The frequency of using smartphones are especially higher in Brazil when using devices to locate stores and store-related information (95%), track orders (94%), compare prices (94%) and research products prior to visiting a store (94%). Retailer smartphone apps continue growing in popularity in Brazil with more than nine in 10 smartphone users using them, compared to roughly six in ten mobile device users saying they did so in 2015. Retailer app users say they prefer using a retailer’s mobile app over a mobile website because it’s faster.

For more insights on the study, please visit www.pressroom.ups.com.

1. https://www.nasdaq.com/article/latin-america-a-vibrant-emerging-technology-hub-cm956732

2. https://www.ebit.com.br/webshoppers

About the UPS Pulse of the Online Shopper Study™

The global UPS Pulse of the Online Shopper Study evaluates consumer habits, encompassing pre-sale to post-sale. The report was conducted in Brazil, Mexico, Europe, Asia, Canada and the United States. The 2018 study was carried out during Q1, Q2 and Q3 2017 and is based on a comScore survey answered to more than 18,000 online shoppers around the world, of whom 1,144 are from Brazil. Those surveyed had made at least 2 online purchases during a typical three-month period.

About UPS

UPS (NYSE: UPS) is a global leader in logistics, offering a broad range of solutions including transporting packages and freight; facilitating international trade, and deploying advanced technology to more efficiently manage the world of business. Headquartered in Atlanta, UPS serves more than 220 countries and territories worldwide. The company can be found on the web at ups.com or pressroom.ups.com and its corporate blog can be found at longitudes.ups.com. To get UPS news direct, follow @UPS_News on Twitter.

About comScore

comScore is a leading cross-platform measurement company that measures audiences, brands and consumer behavior everywhere. Built on precision and innovation, comScore’s data footprint combines proprietary digital, TV and movie intelligence with vast demographic details to quantify consumers’ multiscreen behavior at massive scale. This approach helps media companies monetize their complete audiences and allows marketers to reach these audiences more effectively. With more than 3,200 clients and a global footprint in 70 countries, comScore is delivering the future of measurement. Shares of comScore stock are currently traded on the OTC Market (OTC:SCOR). For more information on comScore, please visit comscore.com.

Inquiries

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UPS Media Relations

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pr@ups.com