Due to Coronavirus, e-commerce grows by 81% in April
May 7, 2020
In total, 24.5 million purchases were made last month, a 98% increase over the same period last year
Social isolation has had significant impacts on retail and, in order to maintain profits, many companies have accelerated the digital transformation to begin making their sales over the Internet. Those who held e-commerce in high regard are reaping the benefits of their investment: according to Compre&Confie, a market intelligence company focusing on e-commerce, Brazilian digital retail reached R$9.4 billion in April, an 81% increase compared to the same period last year.
Also, according to the company, the increase reflects mainly the growth in the number of orders placed during the month. In total, 24.5 million online purchases were made, a 98% increase over April 2019.
The categories that reported the highest growth in volume of purchases compared to April 2019 were:
Food and Beverage (+294.8%)
Musical Instruments (+252.4%)
Bed, Bath and Table (+165.9%)
Even with the increase, the average ticket analyzed reported a decrease compared with the same month of the previous year. “The online retail market is undergoing a profound change. The scenario of COVID-19 has accelerated the sales of categories that until then were little explored, such as health, food & beverage, and pet care, which contributes to the growth of the Brazilian e-commerce,” said André Dias, CEO of Compre&Confie.
Mother’s Day should contribute to the increase, generating an increase of over 100% in e-commerce revenue.
While e-commerce is already growing at a fast pace without commercial dates, May Mother’s Day should provide an “extra” boost for digital retailers. According to Compre&Confie, online purchases should reach revenues of R$5.9 billion, a 123% increase over the same period last year. “The projection for Mother’s Day really is something surprising, which I have not seen since the beginning of e-commerce, with a growth rate above 3 digits,” said Dias.
The company’s estimate considers the period from April 25 to May 9 and estimates that, during this period, 15.5 million purchases will be made online – a number 139% higher than that reported the same period of 2019. Despite buying in greater amounts, Brazilians should spend less on each transaction. The company estimates a 7% drop in the average ticket for purchases, totaling R$380.23.