Online sales are surprising and continue to grow after the end of the pandemic; check out the sectors, practices and tips that should be on the radar of investors and entrepreneurs in the sector this year
Brazilian e-commerce continues to show its strength and, according to Retail X, managed to grow more than R$40 billion (US$8.1 billion) in 2022, even with the new challenges presented by the end of the pandemic and the return of consumers to physical stores.
If consumers were still reluctant to buy a product online, the last barriers have been knocked down, in the opinion of the founder of E-commerce Brazil, Tiago Baeta. And this fact is closely linked to the first e-commerce trend that should boost sales in 2023. Check out the five points below.
- Online supermarkets
In 2023, the supermarket sector will continue to grow on the internet, according to Tiago Baeta. The executive recalls that online purchases in supermarkets were “almost non-existent in the pre-pandemic period, despite being a major highlight of physical retail”. In the last two years, however, this situation has changed and supermarket items are currently the best sellers in Brazilian marketplaces.
In Latin America, online purchases in supermarkets grew by 41% in the first half of 2022 compared to the same period in 2019, before the health crisis. “The trend is for the online supermarket sector to continue growing. It stood out in the last two years and has not lost strength, on the contrary, it is consolidating”, says Baeta.
The name says it all. A live in which the consumer interacts with the seller and can make the purchase at that moment. Live commerce is a strong trend for 2023 in Baeta’s assessment. In an article published in E-commerce Brasil, Monique Lima, CEO and Co-Founder of Mimo Live Sales, explains that a live commerce can be carried out within the seller’s website or app, thanks to SaaS technology – Software as a Service – white label , which adapts to the adopted platform. According to Mimo Live Sales, currently 30% of online sales in China are already carried out in live commerce and the expectation of the global market is to move US$ 1.2 trillion by 2025.
“The (live commerce) conversion rate is much higher,” says Baeta. According to Mimo, it can reach 30%. “Brazil is the country where people buy most influenced by others”, stresses the executive. Another factor that has helped the success of live commerce, as the influencer often becomes the presenter of the transmission.
- Retail Media
Ads on the internet are no longer the same after the emergence of Retail Media, a new method of placing Ads on retail websites and applications. In 2023, the trend will continue strong, transforming marketplaces into major destinations for advertising budgets. “Amazon, in the United States, is already the biggest advertiser and, at the same time, the biggest media channel in that country. All sales channels and large marketplaces have become media channels. The search for products is happening more on these platforms than on Google itself”, explains Tiago Baeta.
For the E-commerce Brazil executive, knowing how to use marketplaces in his favor will be one of the main differentials of online businesses this year. “The concentration of sales in e-commerce is in the marketplace, so it is important to know how to sell, be present, know how to use them, but without depending on them, which can be very dangerous”, says Baeta, about internet sales platforms.
4 – Recurring purchases
One of the most constant characteristics of e-commerce that is growing in the sector is recurrence, or the possibility of buying one, or a set of products, with a certain periodicity. “What I try to focus on in my business is recurrence, and the internet is perfect for that”, says Tiago Baeta. For him, developing products for recurring purchases – whether through clubs, subscriptions, or curatorships – involves the customer, builds loyalty, and is still a great alternative to increase the average ticket. “With the amount collected, you can invest, make an increasingly better product for the customer”, he adds.
Recurring purchases are also present in the phenomenon of online supermarket sales, in the executive’s assessment, which makes it an interesting trend for 2023. Many customers realized how much more comfortable it was to plan purchases and save product lists during the pandemic and ended up adopting the habit even with the possibility of doing the shopping in person.
5 – Understand and Invest in the customer journey
The division between physical and online retail sales is bound to disappear, according to Tiago Baeta. “E-commerce is part of the journey. We must stop treating e-commerce separately from retail. It’s a single experience, a single journey, the vast majority of purchases start online and end in the physical”, he explains.
The executive also states that to accompany this journey of the consumer it is important to invest in creating a relationship. He highlights the growing trend of “using the consumer to your advantage”. This happens when the customer is involved by the brand, evaluates the product positively in public, and becomes a “micro-influencer”. The entrepreneur himself must become a brand influencer and create a community of fans of the brand, directing these assets to “the correct sales channels, whether online or not”, concludes Baeta.
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