Given the sheer size and population, Brazil has long been a major hub for eCommerce in the South American market. Over the past decade, the growth of the eCommerce market has grown all over South America, but no country boasts a larger share of the market than Brazil. Just this past year, sales through eCommerce in Brazil grew by 31% in the first half of 2021. With this particular market growing at such an exponential pace, it can often prove difficult for small and medium-sized businesses within the country to keep up. However, once these companies understand the obstacles they are up against and how to address them, it will be much easier to navigate.
Among the aspects of the eCommerce market that Brazilians enjoy are price friendly products. There is in general a major price sensitivity, and it is a major hurdle for many small and medium eCommerce businesses. Given how sensitive the Brazilian market is, it is important for these businesses to keep the cost of their product to a minimum. Should the price increases be unavoidable, this will then require these businesses to get creative and be proactive in the promotional activity for the products.
The increase in price cost is closely tied to the infrastructure development within the country. Brazil, is a very large country, with a sizable population that lives in the rural parts. In this section of the country, the infrastructure in terms of roads and other forms of transport is simply not as developed as it should be, as the government investment in this aspect didn’t match the eCommerce growth rate over the years. This is the penultimate factor in why shipping costs within Brazil are so high, as it simply isn’t nearly as quick shipping wise as it would be in the United States for example. In order to receive eCommerce as fast as possible in Brazil, the extra shipping costs will be unavoidable, leaving small and medium businesses charging the customer more. While this can turn a lot of customers away, there are many ways of navigating through this.
One of the easiest ways that this can be solved is through the way the product is marketed. As with any product that is more expensive than others, the price must be justified in the consumer’s eye. Getting the consumer to understand the reasoning behind charging a higher price is essential, and that is where the marketing aspect is applicable. For example, if the company is using higher quality material in its products, that is essential information to convey to the customer. If there is a need for extra shipping costs, the company should inform them that this extra cost will ensure fast and secure delivery. It is aspects like this that really need to be honed in on, as these two areas in themselves address the main problems these smaller and mid-sized businesses are facing when they enter the eCommerce market in this country.
MBE has the resources to help companies work through and address these problems by giving small and medium-sized business the most important thing for them: time to manage their business instead of managing logistic and marketing challenges. Smaller and medium-sized eCommerce businesses don’t necessarily have the time or structure to deal with logistic and marketing challenges and MBE is there to help them with a great focus on customer service and service personalization.