Growing Momentum Around eCommerce In Brazil

Back in September, I wrote up a few of my findings from meetings with companies in the eCommerce space in Rio and São Paulo. We’re fielding an increasing number of questions about Brazil, and indeed, while eCommerce in Brazil today is still heavily dominated by local companies, the landscape is starting to include more international players:

  • Global eBusinesses are increasingly making Brazil a priority. One of the trends we called out in our global eCommerce predictions for 2011 was that Brazil would be a key market this year for eBusinesses expanding internationally. Momentum is building: Last summer, Sony launched a new online gaming store in Brazil, and Netflix entered the country. Even Amazon took a step into the market a few weeks ago when Amazon Web Services launched its first edge location in South America in São Paulo. European companies, too, are focusing on Brazil – Germany’s Rocket Internet, for example, incubates eCommerce start-ups in Brazil such as fashion website Dafiti which launched earlier this year.
  • Vendors are also turning their attention to Brazil. While a few global players like IBM have established eCommerce solutions tailored to the Brazilian market, an increasing number of US-based vendors are turning their attention to Brazil. In the past couple of months alone, vendors as diverse as email marketing provider ExactTarget and mobile commerce solutions provider Usablenet announced new acquisitions or implementations in Brazil. The interest in this market is only likely to grow as both local and global retailers in Brazil look to add more enhanced tools and features to their online offerings.  

Our newly published report on Trends in Brazil’s eCommerce Market identifies some of the key trends and provides recommendations for companies eyeing opportunities in this rapidly evolving market.


An increasing number are

An increasing number are looking beyond the mature markets of Europe and North America to the developing economies of Latin America and Asia as online retailers look to diversify their revenues internationally. ECommerce is already booming in Brazil: the projected 2011 sales are of almost $10B and online retail sales will approach $50B in 2012 and continue to grow at a rapid pace in Brazil. Consumers in the world’s seventh largest economy increasingly turn to the Internet for their shopping needs and it’s not surprising that Brazil’s eCommerce market will outpace all others by a huge margin.

Growth rate of e-commerce in Brazil

I wanted to inquire about the expected growth of Brazil's e-commerce. Zia, on your article you indicate that the projection is to double (from $10B in 2011) to reach $20B in 2016. That is a CAGR of 17%, which is quite modest for an emerging market which has shown record growth an economic resilience. More over this is quite a modest growth considering the US e-commerce in a much mature state grew by 16% this year. Could you explain the assumptions of these projections and what is included -and excluded- from this e-commerce volume?

eCommerce growth clarification

Hi Rodrigo,

Thanks for your comment – very timely given yesterday’s announcement about GDP growth in Brazil. Our CAGR for online retail in Brazil – 18% with rounding – takes into account macroeconomic factors like GDP growth rates, as well as factors such as growth in the overall online population and in broadband connectivity. We look at figures like the number of online buyers in each market and spending per online buyer, and also review issues that may drive or prevent online buying, for example, the percentage of consumers who have credit cards or who indicate they’re highly concerned about online security.

Together with our forecast team we compile a series of different data points, analyze how they’re changing and debate how much of an accelerator or inhibitor they’re likely to be. We also look at the growth of key eCommerce players’ online revenues in each market. The composite picture we have of Brazil suggests growth rates that are far higher than what we see in markets like the US or northern Europe, but not at the levels seen in markets like China.

As to what’s included vs. excluded, our figures include all B2C and C2C online retail sales. They do not include travel, automotive, or any B2B sales.

One thing to note about Brazil: The CAGR of 18% reflects steady growth over the next few years. We expect to see the market grow by 21% between 2011-2012, for example, but still be growing by 15% between 2015-2016. By contrast, in a market like China where current eCommerce growth rates are staggering, they will drop substantially in this timeframe.

I hope that helps.


Thank for your response Zia.

Thank for your response Zia.

I still believe your forecast is way on the concervative side. In the US alone, e-commerce has outperformed the general economy manyfold, growing at a 16% last year according to the recently issued Javelin report. Brazil's e-commerce continues to grow above 30% y-o-y, driven by a 50%+ growth in Broadband and a generalized consumer confidence. I do believe it will sustain growth in the thirties for a few years. Time will tell.


It would be great to see even higher levels of growth, and indeed, I think Brazil will increasingly be one of the key markets for online retailers expanding globally. We're keeping a close eye on the market and will revise the forecast this year based on all the most recent figures.

Zia- I'm curious if you can


I'm curious if you can provide some further insights on who the bigger players in Brazil e-commerce are - I've heard of B2W but not any others. Is there someone else comparable to GSI or Digital River in Brazil?

Bigger players in Brazil e-commerce

Here are a handful of the leading online retailers in Brazil - including some of the B2W sites - that I mentioned in my Trends in Brazil's eCommerce Market report:, Casas Bahia, Comprafacil, Magazine Luiza, eBay's Latin American partner MercadoLivre, specialty online retailer,, Saraiva, and Submarino. Global retailers Walmart and Carrefour also operate eCommerce sites in the country.

I have not come across many full service eCommerce solutions providers with a specific focus on Brazil, in contrast to Europe or Asia. There are currently 7 logistics providers serving the eCommerce marketplace in Brazil (glad to provide you with the names if you're interested), but to my knowledge, there's no market leader providing the entire solution. If any of our readers have encountered any, please weigh in!


Thanks Zia for sharing

Thanks Zia for sharing information on E Commerce trend.