Today’s news covers ecommerce and business opportunities in Brazil. Though the Brazilian economy is struggling, the tech sector is booming. An estimated 299 e-commerce companies operate in Brazil. A recent report estimates it is the fourth largest B2C e-commerce economy in the world. New logistics company Endicia promises to help business navigate the e-commerce delivery challenges. For reference, Amazon had $475 million in sales in Latin America in 2013.
Online sales in Latin America totaled $57.7 billion in 2014. With more than 35 million middle-class residents, eMarketer expect Brazilian e-commerce to reach $19.7 billion in 2015. The most popular products purchased online include apparel, health, beauty and electronics from the US and China. VCs quadrupled investments in the country in 2014 to $197 million. It’s an economy filled with challenges but ripe with opportunities as its young, tech savvy population embraces e-commerce and mobile.
As Brazilian Economy Descends Into Crisis, Tech Is Growing Double Digits
Despite a miserable macro-economic mix of circumstances, including the worst recession in almost 100 years, the biggest corruption scandal Brazil has ever seen, and calls for President Dilma Rousseffs impeachment, Brazil’s tech industry is thriving. Startups are churning out funding announcements as fast as the bad news pours in, with over $150M in announcements this summer alone. Although only half of Brazil’s population is online, it’s already the fifth largest internet and mobile economy in the world, a top five market for Facebook, Google and Twitter, and one of the fastest-growing smartphone markets globally with another 100 million people starting to come online. Via techcrunch.com
Latin America B2C E-Commerce Market 2014
As the growing number of Internet users in the region grasp the benefits of online shopping, both foreign and local players compete for a larger share of the booming market. Latin America is the fourth largest region worldwide by B2C E-Commerce sales. Two of the emerging B2C E-Commerce markets in the region, Brazil and Mexico, rank among the top twenty countries by the size of the online retail market. Via prnewswire.com
Endicia Helps Speed Packages to Mexico and Brazil
Endicia launched Global Services to help merchants overcome some of the hurdles in reaching the Latin American customer. Endicia Global Service includes Mexico and Brazil, promising businesses quicker and more reliable customs clearance and package tracking at affordable rates. The shipping service provider partnered with SkyPostal, Inc., a parcel delivery company specializing in Latin American logistics, to create the new service. Via ecommercebytes.com
Why Your Ecommerce Business Should Look to Brazil
According to a study by Internet Retailer, Latin America is the second fastest-growing ecommerce market in the world. Even Amazon, with its finger ever on the pulse of great opportunities, raked in $475M in Latin American web sales in 2013, indicating that the market’s growth is no passing fluke. And at the heart of Latin America’s ecommerce growth lies Brazil.
Of the 500 ecommerce businesses ranked in the Internet Retailer study, 299 are based there. With Brazil’s tech-savvy population, in which more than 60% are under the age of 30, the country offers an appealing audience for hopeful US merchants. Via entrepreneur.com
Ecommerce in Latin America: Challenges, Opportunities
Latin America presents a paradox to ecommerce merchants. It contains a rapidly growing middle class eager for a larger selection of quality goods, but the region has unreliable shipping operations and limited consumer use of banks and credit cards.
The World Bank estimates that more than 50 million Latin Americans joined the middle class between 2000 and 2010. About 30 percent of the Latin American populace is now considered middle class and most of the growth — 35 million people — has occurred in Brazil. Nevertheless, at about $57.7 billion in online sales in 2014 according to eMarketer, Latin America has the second lowest level of digital sales worldwide, surpassing only the Middle East and Africa. Via practicalecommerce.com
Brazilian e-commerce to reach $19.7 billion in 2015
E-commerce in Brazil will generate $19.7 billion in 2015 – a 17,3 percent increase on last year’s figures, according to research from consulting firm eMarketer.
Within Latin America, Brazil is the best performing market, followed by Mexico with predicted sales of $5.7 billion and Argentina, where the forecast is $4.96 billion, according to the research. E-commerce revenues in Latin America should reach $38.2 billion in 2015 – a 23,9% increase on 2014 numbers. Via zdnet.com
Why Brazil is an Opportunity for Cross-Border Growth
There is an increasing amount of cross-border online shopping since the domestic market in Brazil is still developing. First, products purchased online are often less expensive than buying domestically due to the high local taxes and duties. Products can be as much as three times the price at a local store compared to the price on an international website. For example, Brazil has the most expensive iPhone and PlayStation in the world. Secondly, there is often better availability on international websites because many products have not yet launched locally.
The most frequently purchased products online are apparel and accessories, health and beauty, appliances, electronics, and online games. The most popular countries to shop from are the US and China. Via multichannelmerchant.com.
Venture Capital Heads to Brazil, Defying Economic Slump
To understand the venture capital scene in Brazil, follow the smartphones — not the economy. That’s the message from Doug Leone, a partner at Sequoia Capital, an early investor in both Google Inc. and LinkedIn Corp. His firm committed funds last year to Sao Paulo-based Nubank, a technology-based financial-services company.
Local startups are reaping the benefits of a global venture capital community that’s hunting for markets with large, uptapped bases of Internet-using consumers. The current economic malaise aside, Brazil fits the bill: Tens of millions of people joined the middle class during a decade-long commodities boom. Via bloomberg.com
S&P Downgrades Brazil’s Credit Rating Straight Down to Junk Territory
Brazil’s investment-grade credit falls beyond correction and into junk territory as Standard & Poor’s downgraded the country’s debt Wednesday. According to a report from The Guardian, Standard & Poor’s said that Brazil lost its investment-grade status as it is projected with a negative outlook. This downgrade is unfortunate as the nation enters a recession. Via vcpost.com
US Ecommerce Preview
Tomorrow, we’ll take an in-depth look at US e-commerce sales predictions for the pre-holiday shopping season. In the weeks ahead, we’ll be examining several e-commerce markets in SE Asia as well as continuing our series on industry segments. Don’t miss our upcoming marketplace and sector highlights. Remember, subscribe to the Monday – Friday Cashback Industry News for global news you can use.