E-commerce in Brazil conquers users, but still faces challenges

Last year, Brazilian e-commerce revenue reached R$185.7 billion, according to data from the Brazilian Association of Electronic Commerce (ABComm). This represents growth of over 10% compared to 2022. The standout segments were electronics, telephony, home and decoration, and fashion and accessories.

The projection for 2024 is for even greater gains, reaching R$204 billion, with an average ticket of R$500. The number of online shoppers is expected to exceed 90 million, according to ABComm. Despite the accelerated expansion, the sector still faces challenges.

Among the main obstacles to taking advantage of this business model's promising prospects is the difficulty of access in some regions of the country, according to information from the National School of Public Administration (Enap), in partnership with the Undersecretariat of Business Environment and Competitiveness (SANC) and the Ministry of Economy.

Obstacles to delivery in rural areas, regions with difficult access, favelas, and localities without postal codes can impact the sector's expansion. The road transport model is the most widely adopted, but limitations and restrictions influence the final price of the order, resulting in high shipping costs.

Online scams are causing consumer distrust.

Among the challenges faced by e-commerce are also scams, which increase consumer distrust, as reported by the Brazilian Service of Support for Micro and Small Businesses (Sebrae). 

Invest in Secure payment technologies and to make available on the website information such as company name, address, CNPJ, and feedback Two clients are measures that stores should adopt to show the consumer that things are running smoothly.

Serasa Experian, Data technology A leading provider of intelligence solutions for risk and opportunity analysis reveals that, by the end of 2023 alone, there were over 837,000 attempted fraud cases in the country. Because of this, concern about this type of crime increased by 58% among companies in 12 months. In the case of large organizations, 68% state they are more vigilant on the subject.

The situation also causes consumer apprehension. According to the Brazilian Federation of Banks (Febraban), three out of ten people in the country have already been victims of some type of scam. However, security can be strengthened through measures such as not clicking on unknown links, preferring purchases from companies with which you have already done business, and reinforcing care with passwords and cards.

Among the strategies to avoid online fraud, Serasa also suggests checking the company's business data and verifying security seals and digital certificates. E-commerce websites should always begin with “https”, not “http”. 

Assessing communication quality, such as Portuguese language errors and poor-quality photos, and using secure devices, avoiding other people's computers and public Wi-Fi networks, also reduces the consumer's chances of becoming a victim of online fraud.

The digital divide creates barriers to access.

A 2023 survey by the Brazilian Society of Retail and Consumption (SBVC) indicates that the main Digital payment options Payment options offered by online retail companies are credit card (immediate payment) (100%), Pix (85%), and installment payments via credit card (85%). 

For computer purchases, installment payments via credit card are the consumer's preference. For purchases made via cell phone, however, Pix is consolidating itself as the most widely used payment method. The digitalization of payment methods offers convenience to the customer, but this reality has not yet reached the entire country. 

More than 36 million people in Brazil are offline, and in rural areas, the rate reaches 53.31%. This data comes from the TIC Domicílios survey, released in 2023 by the Regional Center for Studies for the Development of the Information Society (Cetic.br), and highlights that digital commerce is still not accessible to everyone.

E-commerce grew, but so did competition.

In 2023, the number of online stores increased by 17% compared to the previous year, reaching more than 1.9 million. The results of the research "Profile of Brazilian E-Commerce," conducted by... BigDataCorpThis demonstrates that the scenario is favorable for the growth of online businesses.

With the emergence of new companies, competition intensifies. To remain competitive, they need to showcase their differentiating factors to their target audience and develop strategies to position themselves in search engines, such as investing in marketing and SEO.

According to Sebrae, one of the most common navigation problems is slow-loading or error-prone websites and apps, often leading to abandoned purchases. E-commerce needs to be accessible, with platforms that offer good usability and enhance the user experience.