It’s mid October and you’re wondering if it’s the right time to start selling in Brazil & Latin America. E-commerce in LatAm follows a positive growth trend from January to December, observing a peak in the month of November when Latin Americans go on a shopping spree.
At this time of the year, not only sales peak but so does the average ticket, that is, more shoppers are buying, and spending more in November and December.
However, launching your sales in Q4 might seem like a hasty move, but our merchants’ experience tell us that it’s definitely not too late to profit from the end of the year sales volume in Latin America and the approximately USD 4 billion online sales that happen in the months of November and December.
The graph below shows the ecommerce sales cycle in LatAm, and why it’s a good idea to start selling now and profit from the sales momentum that started around mid-year.
A November success story.
It was 2014 and GearBest decided it was time to launch its business in Latin America. They contacted EBANX looking for payments advice, and how to best tackle this market. “GearBest launched its sales in Brazil early in 2014, but at that time it wasn’t focused in Brazil and didn’t have a Brazilian Market plan yet”, says André Bicho, Marketing Manager at GearBest. They came to us wondering about the payments mix they should offer, their marketing strategy and also if the timing was right to sell in Latin America.
Perhaps this is also your case.
GearBest decided to start selling right in the beginning of the year and, after two years in Brazil sales were still stagnated. Until 2016. The first half of this year (Q1+Q2) was a still disappointing for them; despite of some marketing efforts, sales were faltering, there were doubts if the Brazilian market was that profitable at all.
“It was a gradually growing process, we had to be patient and follow the market trends. As we became more familiar with the Brazilian market, it got easier to understand how we can provide better solutions and service to our customers”, adds Bicho.
The marketing efforts on the first months of the year brought very little results, since Latin Americans are not as active online in the first quarter — people are travelling and their minds are set on carnival time.
However, by mid year, in July, the scene started to change, new customers were coming in and the old ones started to purchase more. As a result, the average ticket rose from $30’s in Q1 to more than $50 in Q3. Sales were indeed looking better, but November was unexpected.
An outstanding end to a not-so-outstanding January beginning.
In 2016, Black Friday and CyberMonday sales in Brazil grew 25%, reaching USD 900 million in sales. In the same year, Gearbest decided to take advantage of November’s best-selling-dates (Singles Days, Black Friday, Cyber Monday and Christmas sales) rolling out a marketing campaign on social media and Google ads to reach Brazilian Black Friday eshoppers.
The result was outstanding and unexpected.
The last 2 months of the year are different from Q1, they have increased organic traffic, which Gearbest bolstered with online advertisement through the typical channels, mail marketing, social media and Google ads.
Bicho says GearBest is pleased with the results, but they don’t want to stop there. “It’s been great but we still have a lot of margin to improve. November till January seems to be the best selling season”, complements. “EBANX has been a great partner for us, helping us go deeper in the Brazilian Market and we hope to keep reaching great achievements together for a long time”.
So, bottom line, the timing is right to launch your online store in Brazil and Latin America Do not (and I repeat) miss November sales.