Brazil's e-commerce business soared 185%, and social networks contributed 34%!

E-commerce is one of the fastest growing industries in Brazil in 2020, up 185% year-on-year from 2019. This rapid growth is inseparable from the huge driving force of social networks, and the newly born social network shopping function has contributed 1/3 of its sales.

According to research data from Nuvemshop, a Latin American e-commerce platform with 70,000 registered users (mainly small and medium-sized enterprises), in 2020 the proportion of online consumption by Brazilian consumers through social networks jumped from 22% to 34%.

Among the most widely used social media, Instagram takes the lead with a sales share of 87% !

From a business perspective , 57% of entrepreneurs use Instagram shopping tools and 46% use Facebook Shops, but 21.5% of merchants said they do not use any channels other than their own online stores.

In terms of using social media for brand marketing , 96% of the sellers surveyed prefer Instagram . It seems that Instagram is really popular with merchants and consumers! The second social media in the minds of sellers is Facebook, accounting for 80%; followed by WhatsApp, which increased by 13% year-on-year to 71%.

TikTok , which has become very popular in the past two years , has also appeared in the sellers' brand marketing options and has been adopted by 15% of the sellers surveyed.

In terms of consumer services , WhatsApp is used by 95% of sellers and is still the main channel for companies to provide customer service; followed by Instagram, accounting for 83.5%; then email, 51%; Facebook, 49.5%; telephone, 42%; and others, 5.5%.

When it comes to social media marketing, influencers are a topic that cannot be avoided. The survey shows that nearly half of the sellers have reached cooperation with influencers, of which 39.5% of sellers said they exchanged traffic by providing products; another 33.5% of sellers have not reached any cooperation with influencers, but have the intention to adopt influencer marketing; and finally 19% of sellers have no interest in influencer marketing.

Alejandro Vázquez, co-founder and CCO of Nuvemshop, believes that e-commerce has attracted about 10 million new online consumers, and anyone familiar with online shopping can quickly find the products they want online. As a result, the penetration rate of e-commerce in the retail sector has doubled from 5% to 10% in less than a year.

Social networks are one of the important drivers of the great progress of e-commerce. He predicts that social media will continue to serve as an important portal for connection and communication between sellers and consumers in the future , and promote e-commerce to further penetrate into people's daily lives.

Brazil

Social e-commerce