Brazil ecommerce jumps 57% in first five months of 2020 fueled by COVID-19

SAO PAULO, June 23 (Reuters) - Brazilian e-commerce has risen by 56.8% in the first five months of 2020 from a year earlier, reaching 105.6 billion reais ($20.50 billion) in sales revenue, a survey showed on Tuesday, as more consumers have shifted to online shopping during the coronavirus pandemic.

The number of online orders grew by 65,7% in the same comparison, mostly driven by three categories: cosmetics and perfumes, furniture and eletronics, according to data compiled by Brazilian ecommerce consultancy Compre&Confie and industry body ABComm.

“Consumers are more and more involved in online shopping particularly in categories related to basic needs and efforts to prevent COVID-19,” said André Dias, director at Compre&Confie.

Brazil’s ecommerce growth was also boosted as smaller merchants and traditional brick-and-mortar retailers have pushed to boost their own online sales, the survey showed.

“It is possible to start selling online quickly and simply, without the need for large investments,” Mauricio Salvador, president of Brazilian ecommerce association ABComm, added in a statement.

Brazil’s Northeastern region posted a 60.9% rise in online sales in the first five months of 2020, marking the highest percentage growth among all areas.

Major ecommerce firms such as MercadoLibre and have been investing to bolster their logistics infrastructure in the Northeast of Brazil in a push to expedite deliveries and challenge local retailers such as Magazine Luiza, B2W Companhia Digital and Via Varejo.

$1 = 5.1522 reais Reporting by Gabriela Mello; Editing by David Gregorio