Three foreign brands dominate Brazilian e-commerce
MercadoLibre, Shopee and Amazon represent 30% of national e-commerce traffic
Ahead of the last quarter of the year, the period most anticipated by the trade, three e-commerce platforms appear in competition for access to Brazilian consumers – all foreigners: Argentina’s Mercado Livre (13.8% of total visits), China’s Shopee (10.1%) and the national branch of the North American Amazon (6.8%). Together, they achieved around 700 million unique visits in August, which can be seen in E-Commerce Sectors Report in Brazil gives conversion. This number represents 30% of the total e-commerce turnover.
Among the ten most accessible e-commerce platforms in Brazil today, five of them are from outside: in addition to Mercado Livre, Shopee and Amazon, the list includes China’s AliExpress (6th place) and South Korea’s Samsung (10th).
It is important to mention that these numbers were updated this month using a new database, which is the result of a partnership between conversion with SimilarWeb. In the August report, measurements from March 2022 onwards are already included in the new calculation, which has changed some positions among the most visited brands in e-commerce.
This foreign dominance is also seen in the ranking of the most searched brands directly by users on Google – a metric called Search sharewhich compares the extent of citations of each company with the total number of researches in the segment in which it operates.
In this metric, Amazon, which was searched for by 52% of people within the retail segment in the month, took first place in overall consolidation. They are followed by the Brazilian chain of pet products Petz (47%) and the North American franchise of thermos Stanley (43%).
According to Diego Ivo, CEO of Conversion, international e-commerce has grown tremendously during the pandemic period and each player has their own strategy to win over Brazilians. “Mercado Livre has built a positive reputation that alone attracts millions of consumers every month. Amazon, on the other hand, is known for dates that promote deep discounts, such as Prime Day. And Shopee, like most Asian e-commerce, is betting on a variety of products with a low average fare to attract Brazilians with their low prices,” he says.
E-commerce pulls back even on Father’s Day
After a significant increase of 5% in July, driven by the performance of the tourism segment, Brazilian e-commerce saw a decline of 1.2% in August, closing the month with 2.28 billion visits – even with Valentine’s Day. State. “It was difficult to maintain these good rates, but retail is still experiencing a moment of recovery,” notes Ivo.
In fact, it was the fourth-best result in 2022 for the sector, which now starts counting days for more intense consumption, such as Children’s Day in October, Black Friday in November and end-of-year parties. in December. All this, not to mention the proximity of the World Football Championship, the effects of which will be felt already in the coming weeks, for example in segments such as electronics, clothing and tourism.
In August, some of the segments that had the biggest increase in visits were related to Father’s Day, such as sports (9.1%) – which performed best in 2022, with 102.4 million visits. The same is the case with the segment of electronics and household appliances, which recorded the second highest level this year, growing by 5.5% compared to July.
On the other hand, some segments lost ground in August, such as fashion and fashion accessories (-5.2%), gifts and flowers (-4.7%) – which had already fallen significantly in July – and home and furniture (- 4.7%).
If they keep up their pace of growth until the end of the year, Chinese platforms can come very close to leading the national e-commerce rankings. “Asian platforms could see a big gap in global e-commerce, which is low cost. From this, they created a great sense of urgency with their promotions, promoting a true discovery experience, which ultimately encourages people to spend more and more time inside the site and the app”, evaluates the founder of Conversion.
Stanley Cups increase popularity in search share
Despite being on the Brazilian market since 2018, glasses from the North American brand Stanley have been blowing up social media for a few weeks now. Memes about the price of an item that costs R$ 200, apart from the audience that normally buys it, have taken over the screens of Instagram and Tiktok. But not only: u Report on e-commerce sectors in Brazil, gives conversion, The company’s citations on Google were so high that it placed its name among the most searched for in the search engine in August: four out of ten (43%) searches made in the e-commerce for gifts and flowers were for Stanley mugs.
In July, the brand did not even appear among the five most sought-after brands in the general compilation, let alone in its segment, where the leading gift chain is Imaginarium with 31% of this Search share. In the following month, however, it already collected 42% of searches.
“During the last two years, Stanley has invested heavily in influencer marketing strategies and, at least in Brazil, has reached the right audience – brewers. Whether it will be just a fashion fad or whether Brazilians will definitely like their greater purchasing power is impossible to predict, but the data presented in the report are very important because they indicate a new trend of consumption in the market as a whole,” says Ivo.
In this metric, however, it is difficult to surpass the sovereignty of Amazon, which led in August with 52%, which represents a significant drop of 7 percentage points compared to the month of July. Petz (47%), Stanley (43%), Loja do Mecânico (41%) and Ifood (33%) complete the ranking.
Search share is a different metric than market share, which measures the share of revenue sharing in a particular industry, segment or market. In the case of search share, it’s an indicator predictivebecause studies show that the higher the share of mentions in Google searches, the higher the conversion rate.