Brazil may be a long way from Europe, but with a sizeable population and an advanced e-commerce sector it could still be worth putting on your radar.

Gross domestic product in 2022 came in at $1.9 trillion, making it the twel􀄏h largest economy in the world and the largest in Latin America.¹ It’s also very digitally focused, which is a legacy of key policy decisions made by government during the COVID-19 pandemic.

Around 70m Brazilians received social assistance payments via digital savings accounts, allowing them to access funds remotely.² An estimated 40% of those didn’t have an account before the pandemic, meaning that millions of people were provided with access to online retailers for the first time.³

That’s led to a booming e-commerce sector, which boasts a remarkable 90% penetration among the adult population and has an estimated annual spend per consumer of well over $1,000.⁴

Brazilians are also big cross-border shoppers, with around 72% of online consumers making international purchases in 2022 and 15% doing so on more than 10 occasions.⁵ However, that doesn’t mean there aren’t challenges in shipping to the Brazilian market. Although the country has made progress in reducing trade barriers, high tariffs and complex regulations can pose difficulties for exporters.⁶

Brazil is a big country and online spending is not spread evenly, which might be worth considering if you are planning to target consumers there. The southeast is by far the biggest region for e-commerce sales, accounting for 56% of volumes. Next is the northeast with 18%.¹¹

The vast majority of people speak Brazilian Portuguese as their main language, and only 5-12% of the population is fluent in English.¹² That means localisation can be incredibly important for reaching consumers effectively. Consider your website and your marketing, and don’t forget your customer support.

Customs clearance delays are common in Brazil, meaning it can take longer to get goods to customers there than businesses may be used to. However, the government has been taking steps to improve processes and clearance times and costs are falling.¹³ Yet with complex regulations in the market, it’s essential to make sure all paperwork is in order as incorrect documentation is the most common reason for delays.¹⁴

Brazil has recently introduced new measures that reduce barriers to entry for lowvalue purchases. Since August 2023, e-commerce retailers participating in the voluntary Remessa Conforme programme – and meeting several conditions – could benefit from duty-free treatment of business-to-consumer imports valued up to $50, as well as potentially quicker customs clearance.¹⁵ This marks a big change from the flat rate of 60% goods would otherwise be charged.

Brazil’s social commerce industry is expected to grow by a CAGR of 25.7% until 2029, hitting a gross merchandise value of $10.65 billion.¹⁶ To capitalise, it could be worth reaching out to domestic social content creators. Between 2018 and 2023, influencer advertising spending in Brazil grew nearly four-fold to over $410 million – a figure expected to exceed $630 million within four years¹⁷ – and 73% of Brazilians say they have bought products based on influencer recommendations.¹⁸

There are a several important decision factors for Brazilian consumers when making an online purchase. You may not be able to hit all of them, but satisfying as many as possible could help swing things in your favour. For example, 78% say secure payment methods are important, while other key decision factors include fast delivery (77%), good customer service (74%) and the seller’s reputation (67%).¹⁹

Cards are still a popular payment method for online purchases in Brazil, with credit cards used by 62% of consumers and debit cards by 56%.²⁰ However, digital payments service Pix – which was set up by Banco Central do Brasil in 2020 – is also popular. In fact, according to Worldpay, it will account for over a third of e-commerce transactions in the country by 2026.²¹ If you’re looking to sell into the market, it’s important to make sure the payment options you provide align with consumer needs.