Business

Brazilian e-commerce sector is already being impacted by coronavirus

According to ABComm, since March 12, some e-commerce stores have registered an increase of more than 180% in transactions

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"The crisis will not benefit anyone. If, on the one hand, sales are increasing in e-commerce, on the other, people are more resistant to spend and, therefore, the whole economy is being hurt," says Mauricio Salvador, from ABComm
  • Some e-commerce stores have registered an increase of more than 180% in transactions in the Food and Beverage and Beauty and Health categories;
  • The closure of distribution centers and the prohibition delivery workers’ circulation in cities are concerns for the sector.

If before the new coronavirus crisis, the forecast for e-commerce in 2020 was to reach a volume of BRL 106 billion, which would represent an 18% increase over the previous year; now this scenario is most likely to change. The information is from the Brazilian Association of Electronic Commerce (ABComm).

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“Since Thursday, March 12, some e-commerce stores have registered an increase of more than 180% in transactions in the Food and Beverage and Beauty and Health categories,” said Mauricio Salvador, president of the entity, in a statement to LABS.

“The sector is prepared for seasonal increases, as in the case of Black Friday, when some e-commerce stores receive in just one day, the equivalent to orders for the entire month,” Salvador stressed. “But not everyone is prepared, as some stores are already communicating on their websites, that there is a possibility of delays and replacement of products due to stockouts”.

Although the expert believes that e-commerce is in a position to meet an eventual growth in demand, this doesn’t express a real advantage for the sector. “The crisis will not benefit anyone. If, on the one hand, sales are increasing in e-commerce, on the other, people are more resistant to spend and, therefore, the whole economy is being hurt.”

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Among the concerns, the entity pointed out the fact that government officials might determine the closure of distribution centers and forbid the circulation of delivery workers in cities. “If this happens, e-commerce stores will have to operate on an emergency basis, making deliveries only of essential consumer goods, paralyzing several categories,” he highlighted.

As for the forecast update, ABComm president stated that a few more weeks will be need before revising the revenues forecast for 2020 in the sector.