10 Top Ecommerce Sites In Brazil

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• Sasi George
• January 23, 2020

Brazil is the fifth-largest nation by area and the sixth most populous. Ecommerce in Latin America is growing at 18% accentuated by the top ecommerce sites in Brazil. A stimulating rivalry is emerging between traditional department stores mushrooming online and specialized e-commerce entities fighting to expand their presence in this niche.

Notwithstanding technological barriers Brazil proves to be a well-connected country as data reveals a consolidation of the domestic market that fundamentally confirms increase of sales.

Ecommerce Categories Sales Over The Years

After riding the economic vicissitudes for a decade and a half the Brazilian market is beginning to mature to a consistent and dependable growth. It is suggested that ecommerce has a radical role in this progression of economic recovery.

Brazil has five imperative days when retail sales are at zenith: Christmas, Mother’s Day, Valentine’s Day, Father’s Day and Easter. Five other major retail events are: Carnival, Children’s Day, Consumer’s Day, Black Friday and Cyber Monday.

150 million internet users constitute 70% of the population. While the penetration of the top ecommerce sites in Brazil stands at 62.5%. Brazil is a medium income economy, habituated to e-commerce and its convenience. They utilize smartphones to access the internet and shop online for goods and services.

Ecommerce Penetration In Numbers

Brazilians prefer to pay in instalments for high-value ecommerce purchases. Last year almost half (55%) of e-commerce sales were made through a single payment and the rest (45%) in instalments.

The number of players in the market are healthy and the competition rife. With limited potential for growth both local and foreign players are fighting to raise their shares and position themselves to entice the remaining online shoppers. Brazilian department stores and ecommerce platforms have managed to beat Amazon in their own game.

Mercado Livre (primitively from Argentina) has captured the top position in Brazil, closely followed by Americanas.com (online platform of department store Lojas Americanas). Amazon takes the podium with the third position. Followed by few local specialized retail chains and some purely national ecommerce players.

Top Ecommerce sites in Brazil

1. Mercado Livre

Mercado Livre holds top position for online ecommerce in Brazil as well as in Mexico. This is a marketplace developed by an Argentinian ecommerce and electronic payment firm Mercado Libre.  They permit businesses to sell their wares through a wide variety of categories such as electronics, fashion, toys, furniture and even real estate. Mercado Libre has their presence in different countries of Latin America and has a consumers base of 170 million customers.

Monthly traffic: 330 Million – Website: mercadolivre.com.br

2. Americanas.com

The retail chain Lojas Americanas launched their presence on the web via an online portal Americanas.com. Lojas Americanas primarily focuses to sell home appliances, consumer goods, media electronics, furniture, toys and beauty products. They make this possible by operating three types of stores namely: local convenience stores, supermarkets, and hypermarkets.

Americanas.com is a part of a leading Brazilian ecommerce group named B2W Digital group. Shoptime and Submarino constitute rest of the coalition.

Monthly traffic: 120 Million – Website: americanas.com.br

3. Amazon Brazil

Amazon started as an online bookstore founded in the US in 1994 and then diversified to electronics, media, furniture, apparel, jewelry, food, and toys. After having expanded to very many countries including Brazil, Amazon has taken the undisputed top position in online ecommerce in the US and few other countries. They have diversified into brick-and-mortar retail domain after having acquired Whole Foods Market. Now they also deal with the production, electronics, publishing, cloud computing, and video streaming.

Monthly traffic: 51 Million – Website: amazon.com.br

Ecommerce Penetration In Brazil

4. Magazine Luiza

Founded in 1957 Magazine Luiza operates close to 800 department stores and is heralded as one of the largest retail companies in Brazil. They have christened themselves online as ‘Magalu’ and sell a plethora of products comprising of home appliances, media equipment, consumer electronics, furniture, television, and computers.

Monthly traffic: 49 Million – Website: magazineluiza.com.br

5. Casas Bahia

Founded in 1952, Casas Bahia now operates a 700 retail store chain across Brazil specializing in furniture, electronics and home appliances. Thence they have gone on to develop their online presence with an ecommerce store. With the online entity they focus of selling furniture, consumer electronics, computers and home appliances. They have also diversified and offer a variety of services to consumers and businesses.

Monthly traffic: 37 Million –Website: casasbahia.com.br

Purchase From Top Ecommerce Sites In The Past Year

6. Submarino

Submarino is one of the pioneers of e-commerce in Brazil after having been founded in 1999. They sell a wide range of products such as books, consumer electronics, clothing, drinks, beauty products, and accessories. Submarino is now part of the B2W Digital group, who rank among the leading e-commerce giants in Brazil, also owning Shoptime and Americanas.com

Monthly traffic: 29 Million – Website: submarino.com.br

7. Netshoes

Founded in 2000 Netshoes specializes in sporting goods ecommerce. Netshoes has focused its activities on ecommerce in the niche of sports retail and provides an array of footwear, clothing, and accessories for a plethora of sports activity. Even though founded in Brazil, Netshoes has diversified into Argentina and Mexico. Their fame has enabled them to transform into a key partner for major brands comprising of soccer clubs and global sportswear brands.

They are the official representatives of the National Basketball Association (NBA) in Latin America to manage online stores.

Monthly traffic: 28 Million – Website: netshoes.com.br

8. Extra.com.br

Extra provides a diverse range of products in its brick-and-mortar stores. It is primarily a retail chain of supermarkets, hypermarkets, and mini-markets. Their online shop Extra.com has garnered exclusivity in consumer electronics, home equipment and appliances. They also have an independent website, Clube Extra, which is dedicated to the sale of food, hygiene and groceries products.

Monthly traffic: 20 Million – Website: extra.com.br

9. Dafiti

Founded in 2011, Dafiti is an ecommerce platform functionally catering to fashion and footwear. They have diversified their specialization from footwear to other categories of men and women fashion apparel, sports goods and home products. The success of Dafiti in Brazil has emboldened the Dafiti group to expand their operations across their border to Argentina, Chile, and Colombia.

Monthly traffic: 19 Million – Website: dafiti.com.br

10. Shoptime

Established in 1995, Shoptime has been acquired by the B2W Digital group. The group also own the retail chain Lojas Americanas, their e-commerce websites Americanas.com and Submarino. Shoptime is a retail company that began operations on home shopping channel, TV Shoptime, and a catalogue of direct sales to the consumer. They then later expanded to develop an ecommerce site.

Monthly traffic: 16 Million – Website: shoptime.com.br

Other top ecommerce sites in Brazil

Besides these platforms that carry out operations through an array of products, there are other entities worthy of mention. Thanks to their enormous reach in the Brazilian online landscape. OLX Brazil has managed to garner a massive online audience accumulating to 100 million visits per month by operating in the field of classified listing.

Buscape an online price comparison website is also significant with 20 million visits per month. Though not directly involved in online sales, but their engagement in ecommerce through the referral traffic it sends to other ecommerce platforms is worthy of mention.

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Why Online FMCG Marketing will create Unicorns?

Home » Business Startups » Why Online FMCG Marketing will create Unicorns?

• Sasi George
• January 13, 2020

Shopping all of a sudden has turned into a walk in the park, simplistic, uncomplicated and plain sailing. Years ago this chore had to be planned and ate away a large portion of our time. It also had inconvenient and troublesome repercussions in case of a misfit or a fallacious purchase. A replacement or refund would be another arduous task, but all this has been transformed to the touch of a finger. The online FMCG marketing will change this dull experience.

Now you have a magic wand, Amazon’s 1-touch buy or Alibaba’s promised 30-minute delivery, all the planning is relegated to the back burner. Ecommerce has taken the world by force. The brick & mortar edifices are taking a hit. People moving to the cities and nuclear families are fanning the ecommerce flames to greater heights.

And don’t forget the ubiquitous smartphone, the catalyst to all this revolution or to all the significant and conspicuous transformation the world has seen in the last decade.

Amzon will celebrate its quadranscentennial this year, but ecommerce is still in its youth having crossed the threshold of teens only a few years back. The global online sales last year touched $20.3 trillion that is 14.2% of the total retail sale.

The domains that face disruption are travel, entertainment, books, music, events, fashion, IT, mobiles, electronics and durable goods. The industry experts now believe FMCG would be in the line of fire due to higher frequency of purchases.

What is Online FMCG Marketing 

Even though online FMCG marketing accounts for only 5.8% of the total ecommerce value, the big guns – Alibaba and Amazon, are training their sights to capture a large slice in the market foreseeing its future.

Paradoxically even in developed ecommerce markets such as Asia, online FMCG sales is just breaching the 10% milestone. The onslaught of the huge population of online buyers are yet to invade the FMCG niche.

China leads the race with 14.5% of the total ecommerce sale attributed to FMCG while in the US it’s only 4.5%.

Why Alibaba leads in the FMCG online race is in fact a blessing in disguise due to deficient infrastructure, inept attitude and a mediocre offline retail industry.

This could be a similar scenario in few emerging markets due to factors such as splintered regional markets, distribution channels that overlap, poor quality of local suppliers and products.

It is for ecommerce giants or start-ups to ensure that poorly developed retail infrastructure is enhanced that will birth online FMCG unicorns in the process. The instinctive and spontaneous response would be that it is a domain just waiting to be cashed upon. Alibaba could hitch-hike on the manufacturing potential of China that has seen immense growth since the late 80’s.

The heightened urbanization, rising GDP per capita and humongous efforts to create a high-speed transportation network are the right stimulants to create a positive impetus for its success.

With more folks opting for ecommerce the sales rose like the hood of a cobra, so did the quality and average order value. Over and above the value of goods and cost of supply could be managed to lower levels. Alipay ensured success by bridging the payment barrier between sellers and buyers. But this advantage is only for Alibaba and China.

The Game of the Giants

In the ecommerce niche user acquisition and last mile delivery are the game changers. We know that in emerging markets small businesses are dotted in millions – stocking anything a household would need, stuffed in 100 sq. feet space. They usually have a loyal coterie of consumers whom they know by name and have known for generations.

Small businesses are called cua hang in Vietnam, kirana in India, sari sari in Philippines, warung in Indonesia, xiao maibu in China, kedai runcit in Malaysia, and tienda in Mexico.

These businesses have prospered on loyalty, faith and accessibility. They are doyens at consumer goods marketing. Since the ties are age old and embedded with faith the ecommerce giants find it hard to cut the cord. But these small businesses are largely inefficient and the big guns are trying to break the code to encash on this enormous market.

What you probably didn’t realize is just how significant they are for distributing consumer goods.

For the giants this is a gold mine to be tapped and the repercussions could be amazing deals with brands. For tech firms it is heightened frequency of transaction by the new group of users. Ecommerce companies can enhance their last mile connectivity through these stores for low cost frequently purchased goods. Alibaba has been working to dominate the offline retail. They are now aiming to bring cloud technology to the 6 million small businesses.

Also Read: Personalization in Ecommerce

Away from the limelight

China as of now has community group start-ups, they primarily rely on community influencers who acquire users and accomplish last-mile delivery. India too is facing an intense encounter with the Kirana stores being the battle ground and giants such as Amazon and Reliance waiting to wade in. Indonesia is also caching technology to rescue these small businesses called Warung.

While the majority have been concentrating on the glossy side of the picture, the supply chain, logistics, and financing are being worked upon by another set of firms. The small businesses have faced sourcing difficulties, pricing issues and capricious cash flow. Technology can find a solution to these bottlenecks and empower them to be efficient and profitable. The bottom line is offline sales must coexist with the online so that the entire spectrum of manufacturer to consumer is covered. Having either of the two will be at a disadvantage. Possessing physical presence and digital infrastructure will provide substantial results.

In the US offline is dominated by Costco or Walmart and in China by Alibaba and Tencent, but in emerging markets of Asia such as Vietnam, Indonesia and India a level playing field exists with opportunities open for different players. Therefore now the race begins to build trust and offer infrastructure to the small businesses and create a trillion-dollar retail economy.

Game changers in the online FMCG marketing scene

Shihuituan (China)

The foremost public trading firm in China is Shihuituan. They comprise of a network of 80,000 community influencers (leaders) and as of now serve 22 million families in 65 cities.

65% of the influencers on their platforms are small businesses in localities whose income has risen by 25-30% post joining Shituituan’s platform.

Telio (Vietnam)

Vietnam’s biggest B2B ecommerce platform is Telio. They connect retailers with brands/wholesalers on a centralized platform that offers choice, competitive pricing and efficient logistics. Retailers are ordering at an average of 8 orders on a monthly basis on Telio. They handle 3200 retailers in 2 major cities (Hanoi & Ho Chi Minh) providing a third of the retailers monthly stock.

Udaan (India)

Udaan comprises of B2B trade platform that connects producers and wholesalers with retailers online. They serve 3.5 million retailers in 950 cities connecting 20,000 sellers all over the country.

Khatabook (India)

This is an SMB Tech firm with a digital ledger app as their primary product which supports small-time businesses (Kirana stores) to manage their accounts by assisting them to keep a tab on money owed to them via this digital ledger. As of now 10 million registered subscribers in 4500 cities are on Khatabook.

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