Shoppe grows 7% in accesses in the first half; Amazon Brazil leads e-commerce by search share

A newcomer to Brazilian e-commerce, Shopee has seen significant growth in 2022. From January to June, the number of monthly accesses to the Chinese platform increased by 7%, making it the second most visited marketplace in the country, according to data from the e Sectors Report -stores for June prepared by Conversion. In parallel, Brazilian e-commerce fell by 1.8%.

In total, according to Conversion, Brazilian e-commerce recorded 2.09 billion visits in June. In this case, it is a drop of 1.8% compared to the previous month.

Considering just last month (Valentine’s Day in Brazil), Mercado Livre recorded 292.2 million visits, while the Chinese had 202.4 million.

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After Shopee, another Chinese is growing month by month in this metric: newcomer Shein, from the clothing segment. The company experienced a 61% increase in monthly visits to its digital platforms. Ranked 10th in the ranking of the most accessible e-commerce sites in the country, the company is already closing in on Netshoes, which remains constant at an average of about 38 million monthly accesses.

In June, there was a 1.8% decline in access to e-commerce.

In total, Brazilian e-commerce recorded 2.09 billion visits in June, a decrease of 1.8% compared to the previous month. Most (52%) of them originate from mobile devices. Therefore, when you add the fact that 22% comes from apps, it consolidates the axis of e-commerce around smartphones.

For Diego Ivo, CEO of Conversion, this data shows that the arrival of the market from China to the domestic market has the potential to restructure the competition between the main players in the e-commerce market. Key factors in this transformation are price, discounts and delivery time. “Asian players have been able to identify a major gap in global e-commerce, which is low cost. It also created a great sense of urgency with its promotions and built the right discovery experience, which makes people want to spend more and more time inside the site and app,” he says.

Amazon leads in search share

From this point of view, the Chinese are still far from threatening the most sought-after brands on the Brazilian Internet. To make this market assessment, Conversion innovates by applying the concept of search share. In this case, it is about participation in the volume of searches that the brand has on Google among all searches registered in the segment in which it operates. Search share is a predictive metric of market share, according to Les Binet’s theory.

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Search share – Brazilian e-commerce brands – June 2022 (in %). (Source: Conversion)

In this sense, Amazon is the company that has the largest search share in Brazilian e-commerce. After all, 55% of all searches in his segment, Imported, directly mention him. The same happens with Loja do Mecânico, which holds almost half (46%) of the searched keywords among all brands in the tools and accessories segment. Finally, Petz captures 44% of all pet e-commerce searches.

A free market is also emerging

In this metric, Mercado Livre is also sovereign in its segment as well as in the scope of access to e-commerce as a whole. The company has a 28% search share among markets. It is even ahead of its big competitor, the American Amazon, which is also struggling in this segment (13.5%), and the Chinese Shopee (11%).

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Share of searches – Marketplaces segment – ​​​​​​June 2022 (in %). (Source: Conversion)

Search share does not necessarily represent the same share of the market share of revenue (market share), since it is a predictive metric. However, studies increasingly suggest that the graphs between internet search volume and sales split between brands go hand in hand.

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“In order to grow, it is necessary to look for competitors more. This explains not only why Amazon remains sovereign in import e-commerce, for example, but also helps to understand how the Chinese manage to gain market share in Brazil,” analyzes the founder of Conversion.

The number of accesses expresses seasonality

Despite Valentine’s Day, the segment that had the highest number of visits in June was pets. The increase was 4.8% compared to May, with a total of about 16.3 million visits. In this case, brands such as Petz, Pet Love and Cobasi are among those who benefit the most. However, the 165% increase in searches of the newly founded Petvi is attracting attention.

The other two segments that grew in the month were Pharmacy and Healthcare (3.7%) and Education, Books and Accessories (3.1%). The CEO of Conversion notes, however, that the number of access metrics can explain market movements.

“There is a significant correlation between the number of visits and sales of an industry or brand. In this case, the two months also include important commemorative dates for the store, Valentine’s Day and Mother’s Day. Both increase access and conversion in some sectors, as was the case with cosmetics”, he analysed.

Withdrawing segments

In the opposite direction, e-commerce for children’s products retreated 10.3% in June, from 7.7 million visits in the previous month to 6.9 million. Thus, the most significant drop since February of this year, when it amounted to 6.1 million visits.

A decline was also recorded between the Home and Furniture and Cosmetics segments (8% in both cases).

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