Mercado Livre is the king of the e-commerce world in Brazil, according to a new report from the global affiliate marketing network Admitad. In total, the Brazilian e-commerce market grew by 12.8%, reaching $21 billion in revenue, making it one of the fastest-growing markets in the world.
The key findings of the report are:
• The Latin American online marketplace Mercado Livre dominated the e-commerce market, with nearly 60 million unique users out of a national total of 73 million.
• Signs point to the expanding influence of foreign giants like Amazon, eBay, and Alibaba, which have seen their market share increase significantly over the past year, posing a threat to Mercado Livre’s long-term viability.
The conclusions from Admitad are based on the analysis of data from advertisers and publishers in its network, revealing various insights into consumer and seller behavior. Network members generated over $3.4 billion in sales in 2018, and the report features more than half a million publishers and nearly 2,000 advertisers – including Booking.com, Alibaba, and Aeroflot.
Additional Points to Note:
• The Brazilian marketplace is characterized by the ‘monopolization’ of revenue, where 98.6% of advertising income is concentrated in two categories: ‘Chinese Goods’ and ‘Travel and Tourism;’
• Internet penetration is low compared to other countries, with only 58.3% of the population having regular access to the internet;
• Online retail accounts for only 3.3% of total retail revenue in the country and is expected to grow to just 3.5% by 2019;
• The average income of online retailers per user per year is expected to rise from $187 to $240 by 2022;
• Cashback is dominant in total advertiser sales, representing 65.8% of the marketplace;
• ‘Online Services’ generated the highest income for publishers per sale, at $13.8, with ‘Appliances and Electronics’ in second place, at $11.