E-commerce Sales Soars To All-Time High In Brazil, Led By Office And Home Appliances

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E-commerce sales in Brazil have achieved an all-time high as a result of the Covid-19 outbreak, according to a new study referring to activity during June 2020. Sales for the month practically doubled, with an increase of 98.74% in June in relation to the same month in 2019. Additionally, there was an 81.64% revenue boost for companies operating in digital sales that same month, according to an index produced by the Brazilian Chamber of Electronic Commerce (BCEC).

In June 2020, e-commerce became the main – or only – sales channel for many Brazilian retailers as a result of the social distancing measures imposed by the new coronavirus outbreak, driving unprecedented growth for players in the sector, according to André Dias, coordinator of the metrics committee at the BCEC.

“Electronic commerce is certainly one of the fastest-growing sectors of the Brazilian economy”, Dias said, adding that in the daily comparisons of sales within that particular month, there were sales peaks driving growth rates above 100% – a milestone in the history of Brazilian e-commerce of just over 20 years.

According to the index, 12.3% of Brazilian Internet users made at least one purchase online in the first quarter of 2020. There was a decrease of 1.4 percentage points in relation to the previous quarter (13.7%), but also a boost of 2.1 percentage points in terms of buying activity online in relation to the first quarter of 2019 (10.1%).

In terms of the best performing segments in Brazilian e-commerce, the report cites the leading product categories in e-commerce during March: home office equipment, technology, and communications equipment (40.1%), furniture and home appliances (24.5%), followed by apparel (12.4%), personal care products (10%), medical products and cosmetics (8.3%), food and drinks (2.8%) and books and stationery products (1.9%).

A separate study by Brazilian fintech Ebanx also said that Brazilians are likely to maintain or increase the frequency of international e-commerce shopping during and after the Covid-19 outbreak. The findings are based on a survey carried out between April and May with 1,500 online consumers who have purchased goods or services from the companies the startup serves, which include Spotify and Airbnb.

When buying from international e-commerce websites, Brazilians are particularly interested in electronics, clothing, and decor items, according to the study. In addition, streaming and online games are increasingly popular in Brazil: Ebanx has seen a 106% increase in the total payment volume processed back in March 2020 for both of these services in relation to the same month in 2019.

However, Brazil’s economy is expected to shrink at a record annual pace this year of more than 6%, with the second-quarter posting the biggest decline due to the coronavirus crisis. In Brazil, 2019 marked the start of the political and economic agenda to be carried out by the newly formed Brazilian Congress and executive government. The more optimistic predictions such as GDP growth at the beginning of the year were not fulfilled; consumption among families only gradually moved towards its potential since unemployment rates remained high.

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