Market share of e-commerce in Brazil is a metric that reveals the percentage of market that national e-commerce has in relation to all retail, which, in turn, also includes physical stores. In addition, it can reveal the percentage of market that an online sales company has in relation to competing companies; or that a category has in relation to another, among other factors.
In this way, market share allows for direct comparisons of market sizes and participation . Therefore, retailers can understand the size of the market and their position within it. Consequently, retailers can see whether they should strive to grow or maintain their market leadership.
- Read too: "What is share of search"
Be that as it may, market share, also called “market share”, can be calculated using a simple formula, Volume times 100 divided by Total Volume, represented like this: <(V x 100) / VT>. In the case of an e-commerce, simply multiply the store's billing in a period by 100 and, soon after, divide the result by the billing of all e-commerces in the region. Keep reading and stay in the loop!
Calculating e-commerce market share: examples
Let's suppose, for example, that the fictional tie shop in Retail City, "Gravatinha.com," grosses $100 per year. Meanwhile, the entire online tie market in the city grosses $1 million in the same period. What would be the market share of the e-commerce site Gravatinha.com in this scenario?
Applying the formula <(V x 100) / VT>, we multiply $100k by 100 and so we get 10.000.000. We then divide that by the revenue from the entire Retail City online tie market, which is $1 million. As a result, the Gravatinha.com store's market share is 10%.
In the same way, we can calculate the market share of all e-commerce compared to all online and physical retail. In this case, let's say all online and brick-and-mortar tie retailers in Retail City make $5 million a year. However, the region's online stores make a combined $1 million in the same period. What would be the market share of e-commerce in local retail?
To calculate this, the same formula <(V x 100) / VT> applies. So we multiply $1 million by 100, account for which we will have the result of 100.000.000. We divide that by the revenue from the entire local tie retailer, which is $5 million. Hence, we conclude that the e-commerce market share of neckties in Retail City is 20%.
E-COMMERCE MARKET SHARE IN BRAZIL
Now that you know how the calculation is done, I will show you how the e-commerce market share is in Brazil and in the world. In addition, I will present the market share of the most visited virtual stores in the country. Follow up!
According to a study by the Brazilian Association of Electronic Commerce (ABComm) cited by Mercado & Consumo , the market share of e-commerce in Brazil in relation to all national retail is 11,6% (2021 data). Meanwhile, the share of e-commerce in retail worldwide is 20%, according to data from Statista.
In this context, the E-commerce Sectors Report from Conversion points out the market share of the 10 largest e-commerce websites operating in Brazil. Check it out below:
- Mercado Livre: 13,7%
- Shopee: 9,6%
- Amazon: 5,6%
- Americans: 4,9%
- Magalu: 4,8%
- AliExpress: 3,6%
- iFood: 3%
- Bahia Houses: 2,8%
- netshoes: 1,9%
- Shein: 1,4%
It is worth remembering, however, that the calculation that indicates the market share of the stores mentioned in the Conversion report was based on the number of visits and not on revenue. In this way, the study can also point out that these 10 stores will hold 51,6% of the entire e-commerce audience in Brazil in 2022.
- As soon as you can click on “E-commerce stores in Brazil” and learn more about this topic!
