The Brazilian edition ofOnline Retail Report 2024, developed globally by FTI Consulting on trends in e-commerce, highlights that Brazilian e-commerce has great potential for expansion.
Although the online sales peak occurred during the 2020 pandemic, with a 30% increase, the sector has continued to grow at a faster rate than offline retail since 2019. However, the increase in household debt, which reached 48% of annual income, impacted the growth of online and physical retail in recent years.
Despite these challenges, the e-commerce market in Brazil remains promising, currently accounting for 9% of total retail sales. This number, although significant, is still below more mature markets such as the United States, China, and European countries, as well as neighboring Latin American countries like Mexico (14%) and Chile (11%). This demonstrates the considerable room for expansion as more consumers prefer online shopping.
One of the main factors driving this growth is the use of smartphones as the preferred means of online shopping in Brazil. In 2023, 55% of online purchases were made through smartphones, consolidating this device as an essential tool for e-commerce.
Companies like Magazine Luiza, which expanded its distribution network to 22 centers and 206 cross-docking units, demonstrate how major players are investing in logistics to meet this growing demand. Furthermore, Mercado Livre, which operates with 97% of its sellers being outsourced, achieved the largest market share (14.2%).
Sectors such as fashion and beauty have seen significant growth, following the popularity of home appliances and technology.
Regionally, the Southeast leads in the number of online buyers, favored by more advanced infrastructure and greater technological familiarity. However, regions such as North and Northeast have shown great growth potential. The development of public infrastructure and the improvement of economic conditions in these regions can accelerate the adoption of e-commerce, creating new opportunities for local businesses and major players to expand their operations.
Brazilian e-commerce also benefits from a young and increasingly connected population. The lower-income class, which accounts for about 13% of online consumers, still has a limited share, but this trend is expected to change as their purchasing power increases and more tech-savvy generations become more influential consumers. Currently, 34% of online consumers are in the 35 to 44 age group, suggesting a promising future for the industry.
Another factor that strengthens e-commerce in Brazil is the increasing use of digital payment solutions. Pix, created by the Central Bank, is already the second most used payment method in e-commerce, behind only credit and debit cards. In addition to increasing financial inclusion, allowing more consumers to participate in digital commerce, Pix has proven to be an attractive alternative for those without access to credit. According to the Locomotiva Institute, 81% of Brazilians have a bank account.
It is worth noting that the e-commerce market in Brazil is still quite fragmented compared to markets like the United States, which opens up opportunities for mergers and acquisitions that could consolidate the sector in the coming years. Companies like Mercado Livre and Magazine Luiza have been investing in strategic partnerships to stand out. An example is the partnership between Mercado Livre and Disney, which offers Mercado Livre Premium subscribers access to the Disney Plus streaming service.
The growth of e-commerce could also be driven by the use of new technologies, such as artificial intelligence and logistics automation, optimizing processes and improving the shopping experience. Leading companies are already implementing automation to optimize deliveries and personalize the shopping experience, consolidating e-commerce as an increasingly efficient alternative to traditional retail.
With a young, connected population and ongoing improvements in logistics and payments infrastructure, Brazil is well positioned for a future of e-commerce growth, with opportunities for expansion across multiple regions and sectors.
