The Change of the Distribution Channel in Brazil

The Change of the Distribution Channel in Brazil

In The United States, looking at some statistics, represents approximately 55% to 58% of b2c sales, with a percentage between 35% and 45% of these sales made by third parties in its marketplace.

These expressive figures brought about a big change in the distribution chain of this country, drastically shortening the path between the manufacturer and the consumer.

Often, the price advantages that were offered to distributors, as this market was very well segmented according to purchasing capacity.

Large orders are fulfilled by the manufacturer, medium orders are fulfilled by the wholesale and logically, the small ones are by the retailer.

Currently, I would call a Wholesaler/Retailer, as its ability to buy from manufacturers has grown to such an extent that it has prices that compete with, or are even better than wholesalers.

With the profusion of new technologies embedded in products, began to lead the launch of innovative products, sometimes acquiring the entire production of the first batches manufactured.

This is the reason why many distributors or dealers do not have authorization to sell products on this portal, because only the manufacturer does it, using it as a reference for the sale price, sometimes liquidating inventories, even reserving launches.

If we do a survey on the rankings of Brazilian marketplaces, we will be even more confused, as each survey shows a position, with the undisputed first place of Mercado Livre.

A placement that I would assign 90% of confidence (2021) hit is as follows:

1 – Mercado Livre:
The Mercado Livre is the first on this list because it is one of the e-commerce platforms that Brazilians access the most. In addition, the company is considered the most valuable in Latin America.
With 300 million registered users, Mercado Livre registers more than 10 purchases every second. The platform brings together products from different categories. According to data from Semrush, in the month of May, Mercado Livre received more than 559 million visits.

2 – Americans (B2W):
As part of the B2W group, Americanas is one of the best-known retail chains among Brazilian consumers. So it’s no surprise that it ranks second on this list. Even registering the expressive mark of 189 million hits, it is behind Mercado Livre in terms of monthly traffic.

3 – Magazine Luiza:
The Magazine Luiza is among the first retailers in Brazil to sell its products over the internet. By joining the marketplace system, the company expanded its operations, opening space for shopkeepers from different regions of the country to sell their products.
Even with 740 physical stores in 16 states, online sales still represent a large part of the company’s revenue. According to the survey, Magazine Luiza’s monthly traffic is approximately 136 million.

4 – Amazon (Brazil):
Amazon is a world-renowned e-commerce company. Considered one of the great marketplaces in Brazil, it occupies the fifth position on this list with more than 112 million monthly hits. The platform offers more than 30 product categories, including furniture, beverages and fashion.

5 – Casas Bahia (Via):
Casas Bahia is part of the Via Marketplace group (formerly Via Varejo) along with Pontofrio and Extra. The three platforms add up to millions of hits every month. For over 60 years in the retail market, Casas Bahia has 750 physical stores throughout Brazil.
Selling over the internet for 10 years, it is one of the most sought-after marketplaces by online consumers. In the month of May, it recorded more than 89 million visits.

6- Submarine (B2W):
When it comes to technology, pop culture and sports, the first e-commerce to be remembered is Submarino. The company’s website reached the mark of 44 million monthly hits.
The company’s operations are geared towards a young audience that is attentive to new trends. Together with Americanas and Shoptime, Submarino is part of the B2W Marketplace group.

7– AliExpress:
The AliExpress marketplace has been consolidated in Brazil. Considered a leader in cross-border online sales, it is a brand of the Alibaba group. The platform has more than 150 million active buyers, registering a monthly traffic of more than 43 million visits by Brazilians.

8 – Extra (Via):
The powerful Via Marketplace appears again in this list, but now in tenth place with Extra, which in May totaled almost 39 million hits. Linked to the supermarket chain of the same name, Extra has operated its marketplace since 2013, opening space for companies from different market sectors to sell their products.