The FINANCIAL -- Brazil has the biggest
economy in Latin America and there are no signs it is slowing down.
This year, the Economist Intelligence Unit forecasts the country’s GDP will increase 3.3%, compared to 1.3% growth in the US. In addition, the firm estimates private consumption will increase 4.4%.
The rising tide is benefitting ecommerce. eMarketer estimates B2C ecommerce, including both retail ecommerce and online travel sales, will total $18.7 billion in 2012, growth of 21.9% over the previous year.Brazil will account for more than half of total B2C ecommerce sales in Latin America through 2013, thanks in large part to its huge populace and growing number of online buyers.
In October 2011, eMarketer forecast that 34% of internet users in Brazil, or 23.2 million people, would make an online purchase in 2012.In 2015, 39.0% of internet users, or 31.6 million people, will have made at least one purchase online, driving sales to $26.9 billion that year.
Diversified payment methods are contributing to the success of ecommerce in Brazil. A June 2011 report by Núcleo de Informação e Coordenação do Ponto BR (NIC.BR) found that credit cards remain the most popular method of online payment, used by 63% of buyers in 2010, but offline payment methods are becoming more common. The annual study found 37% of online buyers in 2010 used “boletos bancários,” printable receipts for online purchases that can be paid off in person at a bank, up from 31% in 2009.
One of the biggest barriers to ecommerce in Brazil is online security, but consumer sentiment is changing. According to an August 2011 e-bit and Câmara Brasileira de Comércio Eletrônico report, “WebShoppers 24th Edition,” more than 70% of internet users surveyed felt security had improved in the past two years.
As online retailers build trust by diversifying payment options and improving security, expect ecommerce to outpace total economic growth well past the forecast period.
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