The second quarter of the year, Q2/2024, brought the main indicators for the marketplace sector in Brazil, from a view of sales, operations, and customer service to relevant events in the ecosystem in Q2, as well as standout marketplaces and a general perspective on the upcoming sales calendar.
According to data from the ANYTOOLS platform, which accounts for more than 10% of marketplace revenue in the country, the period from April to June revealed important trends for sellers seeking to optimize their sales performance and boost operational efficiency for the next semester of the year.
The report shows that marketplaces registered a significant increase in the number of orders, with growth exceeding double digits, reaching 16.24% for the quarter in question. However, there was a 9.20% reduction in the importance of the average order value, reflecting a purchasing behavior focused on acquiring more lower-value items, rather than a few expensive items.
According to Victor Eduardo Cobo, CEO of ANYTOOLS, the rapid changes in the digital sales landscape, economic interference, and consumer behavior demand more and more from sellers. “The data shows a constantly evolving marketplace ecosystem, so significant that it's already a specific business; and we see consumers adapting to new economic realities. Our goal with this report is to provide sellers with strategic information to help them optimize their operations and maximize their sales, focusing their energy where it makes sense. ANYTOOLS produces the report quarterly for the entire market, while our clients have access to this information daily, so everyone can act with this data at hand. Together, we can drive growth and excellence in the marketplace ecosystem,” he states.
According to João Ricardo Tonin, PhD in Economics, “we can see consumers searching for discounts and low-priced products. Still a consequence of the post-pandemic effects, we have noticed consumers who are more indebted and have more limited purchasing power. This condition is not unique to Brazil, being a global trend. In this context, it is natural that consumers are more attentive to promotions, seek products with more accessible prices, and opt to pay for their purchases in installments over longer periods.”
The economist also points out that “although there are expectations of a slight improvement in this scenario in the second half of the year, it is always recommended to remain vigilant. The highlight was the advance of large Asian retailers offering products at lower prices and targeting consumers in emerging markets, such as Brazil. The need for these companies to gain market share aligns with consumers' search for discounts and low-priced products. This movement is likely to continue gaining strength in the coming months, given that the financial condition of consumers will not change in the short term,” he explains.
But how do you get ahead?
André Gonçalves Pereira, commercial director of ANYTOOLS, highlights that the key difference for sellers is the possibility of having, with the report, a detailed view of the main market indicators and comparing them with the reality of their operation for strategic decision-making.
“We always like to see 'the glass half full'. This means that sellers have not only detailed indicators, but also the purchasing patterns that consumers have been exhibiting in the current scenario. All of this leads sellers to invest in new strategies, according to the consumer profile, starting, for example, by refining their sales strategy to align with the customer's purchasing profile. Electronic and higher-value products are purchased less frequently and require a more consultative approach. On the other hand, lower-value products and frequent purchases demand not only a lower price, but also attention to shipping costs and delivery times,” he suggests.
Logistics and Consumer Behavior
The experts' advice is for sellers to focus on offering free shipping or advantageous shipping conditions for products, and how to achieve this even for low-ticket items, especially those that are recurring purchases, ensuring that customers receive their products quickly and without frustration.
Average Ticket Price and Subcategory Performance
It is crucial to track and compare the average order values of sub-products within each category. A difference in average order value does not necessarily indicate a higher sales volume, but it can signal better performance relative to the average price. Similarly, it can show if the market is practicing a higher average order value than the seller, indicating whether they are losing margin.
The Importance of Customer Service
Efficient customer service is crucial for increasing sales conversion. Quickly answering customer questions can reduce hesitation at the time of purchase and even post-purchase regrets. The tip is to use Artificial Intelligence to accelerate customer service, responding outside of business hours and on weekends, like Mia, which can provide contextual and humanized service. Quick responses increase the chances of conversion and are important for marketplace reputation, especially when they prevent cancellations.
Planning for Black Friday and Special Dates
The second quarter (Q2) showed us that the days with the highest sales occurred in the days leading up to Mother's Day and Valentine's Day. So, which special dates do sellers need to prepare for in Q3 and the second half of 2024? Although Black Friday only takes place in November, planning should begin now.
The purchasing trends of the first half of the year, such as the preference for products with a lower average price, are valuable indicators for Black Friday. In this sense, it's important for the store to have this assortment, but it's also crucial to consider payment methods, with installments that fit within consumers' budgets. Another tip is to strengthen relationships with suppliers to guarantee stock during Black Friday and consider extending promotions for an entire week, taking advantage of consumers' thirteenth-month salary.
Growth Strategies
To increase the chances of success in online retail, sellers must regularly monitor their performance, compare it to the market, and keep their strategies updated. Connecting to marketplaces through hubs, maintaining up-to-date financial reconciliation, and adopting Artificial Intelligence technologies to assist in customer service and manage their reputation are essential practices for improving customer service and ensuring consumer satisfaction, thus guaranteeing sustainable growth. This involves ensuring investments in technology and employee training, as well as staying attentive to market trends and adjusting strategies to remain competitive.
