Webshoppers 29th edition - english version

Sponsors:
29°edition29°edition

Index
What WebShoppers is.................................................................................................. 03
E-bit.................................................................................................................................. 04
E-bit Products................................................................................................................ 05
Report Methodology.................................................................................................... 07
Executive Summary...................................................................................................... 08
Report Structure............................................................................................................ 10
Chapter I - 2013 Balance Sheet and Expectations for 2014............................... 11
Chapter II – Product exchanges and returns........................................................... 21
Chapter III – Net Promoter Score (NPS)................................................................... 31
Chapter IV – The omnichannel consumer in Brazil.............................................. 42
Chapter V – FIPE/Buscapé Index................................................................................ 49
Main E-bit Clients........................................................................................................... 57
Credits............................................................................................................................... 58
Press Information.......................................................................................................... 63
Contacts............................................................................................................................ 64
Copyright E-bit - All rights reserved

What Webshoppers is
WebShoppers, an E-bit initiative, aims to disseminate critical
information with the purpose of promoting an understanding about
e-commerce in Brazil.
The report, which is published semi-annually, analyses
e-commerce´s evolution, points out estimates, behavior changes and
e-consumer preferences, as well as market trends, contributing to
the development of the sector.
03

Present in the Brazilian market since January 2000, E-bit has been accompany-
ing the evolution of digital retail in the country since it began, becoming a ref-
erence on this topic.
Through a sophisticated system, which collects data directly with the online
buyer, E-bit generates detailed information about e-commerce on a daily basis.
On the website, E-bit (www.ebit.com.br) provides relevant information for
consumer purchase decision-making, as well as offering products and
services to retailers.
For consumers, the E-bit store certification helps to increase online purchase
trust. Through classifications with medals (diamond, gold, silver and Bronze),
which confirm the quality of the services provided by the retailer, consumers
find arguments that help their decision process. For entrepreneur´s, E-bit is a
source of knowledge regarding e-commerce in Brazil, contributing to the de-
velopment of the business and industry in General.
The WebShoppers report , published semi-annually, analyses e-commerce´s
evolution, trends and estimates, behavior changes and e-consumer preferenc-
es, as well as suggesting improvement needs, thus, contributing to the develop-
ment of the sector.
Find out more about E-bit and its main products, below.
E-bit
04

• E-bit Certification - Is a virtual store evaluation service, a Latin America
pioneer and reference for e-commerce in Brazil. E-bit has agreements with more
than 20.000 stores and consumers from these stores are invited to answer a
survey, right after confirming their purchase on the internet. There are three
steps: one immediately after the effective purchase and another performed a
few days later, to evaluate the delivery, and then a third survey regarding the
usability of the product. The process is automatic and simple, performed on the
internet.
• E-bit Ajuda - An exclusive and free service, which seeks to assist consumers´
contact with virtual stores. E-bit Ajuda aims to reduce the difficulty and time
spent by consumers when trying to communicate with stores, in case they do not
receive the purchased product.
• E-commerce Information – The questionnaires answered daily by consumers
about the quality of services provided by virtual stores feed the E-bit database.
By crossing data, E-bit produces reports that trace the profile of online
consumers- with info about gender, age, income, education, habits-and also
comparatively evaluate the services provided by virtual stores, such as payment,
billing, etc. The major highlighted reports include:
• e-Dashboard - A modern tool that provides daily information with market and
online store evolution, featuring data which includes: number of orders, billing,
average ticket, number of one-time consumers, geographic region share,
category market share (computers, electronics, etc), purchase motivators,
delivery status, payment forms used, among others.
E-bit Products
05

• E-commerce Overview Report and Forecast: Presents the market´s evolution
data since 2000, with projections for 2020.
• Price Monitor - In addition to the Brazilian e-commerce sales monitoring
reports, E-bit offers a price, competitiveness and virtual consumer purchase
intention monitoring service. With Price Monitor, it is possible to monitor, in
real-time practically, the price of products in virtual stores, as well as evaluate
the categories, products and brands that are most sought after by consumers
when they use the internet to make a purchase, as well as the transport rates and
the purchase intention for a product.
• TOP HITS – Presents the products that are most sought after by Brazilian
e-consumers, with detailed information about each category and subcategory´s
share, with data from the Buscapé network.
• Behavioral Analysis Report - Displays Executive information about the
satisfaction level regarding services provided and the consumer profile of your
virtual shop, tracing a comparative with the e-commerce market. In addition,
you can choose to receive real-time comments from unsatisfied customers,
along with the order number. Thus, it is possible to immediately detect any
problem and take on resolution and customer retention actions, transforming
unsatisfied customers into loyal customers.
Find out more about E-bit products by sending an email to:
negocios@ebit.com.br.
Produtos E-bit
06

The 29th edition of the WebShoppers report uses information from surveys
conducted by E-bit with more than 20,000 online stores and its e-Consumer
Panel, in addition to ad hoc researches and external information.

E-bit Certification Survey

Since January 2000, E-bit has already collected more than 18 million answered
questionnaires after online shopping processes, and more than 300,000 new
questionnaires are added to this number monthly.
E-bit data is also collected with online buyers, after purchases. The E-bit
certification service allows consumers to evaluate after-sales services, client
services, and the probability they will return to the virtual store, the percentage
index that they will refer this store to friends and relatives, known as NPS (Net
Promoter Score), as well as the store and shopping experience evaluation.
This compiled information, generates monthly market intelligence reports that
indicate the socio demographic profile of the e-consumers, as well as the
best-selling products, most used payment forms, repurchase indicators, among
other information.
Through another WebShoppers edition, E-bit expects to continue contributing
to the development of the internet and e-commerce in Brazil. Enjoy!
E-bit Team.
Report Methodology
07

• Brazilian e-commerce registered R$ 28.8 billion in sales in 2013, which
represents a 28% nominal growth compared to 2012. The initial forecast was that
the industry would have a 25% nominal growth.
• The number of orders made through the internet, in 2013, reached 88.3
million, 32% higher compared to the previous year.
• The best-selling category was "Fashion & Accessories", but "Cosmetics and
Perfumery/personal care/health" and "Appliances" also remained as top
categories in 2013.
• Throughout the year, 9.1 million people made their ﬁrst online purchase, with
this, the number of one-time consumers, i.e. consumer who have already made
at least one purchase on the internet, reached 51.3 million.
• In January 2013, transactions completed through mobile devices corresponded
to 2.5% of all online sales. In December, that number was already nearly double:
4.8%.
• For 2014, the sector´s nominal growth is estimated at 20% , in relation to 2013,
with R$ 34.6 Billion in sales.
• Most consumers have already thought about returning or Exchanging some
product. According to E-bit's research, 40% of the respondents have already
considered a product exchange and 36% already wanted to return a purchased
item.
Executive Summary
08

Executive Summary
• The product exchange and return processes in Brazil must advance. Out of
every ten respondents, only three were able to perform an exchange, without
facing difficulties. This number is even smaller in regards to product returns. Out
of every ten respondents, only two managed to return a without facing
problems.
• The difficulty to exchange or return a product, made half the respondents stop
purchasing from a certain shop and they also began purchasing less through the
internet.
• Although the NPS has a reduction tendency when the delivery deadline is
greater, what most impacts the index negatively are the delivery delays.
• By analyzing the sales channels, online and offline, it became clear that the
price between them is one of the most delicate and discussed issues for
omnichannel strategies. Two-thirds of the physical stores did not accept
negotiating prices to reach the Internet levels, without, however, presenting
arguments for such negative response.
• Considering a period of 12 months, from January 2013 to January 2014, the
FIPE /Buscapé Index, a monthly report that analyzes electronic commerce prices
in Brazil, registered a -1.78% drop.
• From the ten product groups analyzed by the FIPE /Buscapé Index during
2013, six presented price reductions and four recorded increases. The group with
the greatest reduction was "Fashion & Accessories" (-7.70%), followed by
"Telephony" (-7.32%), "Photography" (-6.12%), "Electronics" (-5.43%),
"Informatics" (-0.70%) and "Appliances", accordingly.
09

Report Structure
2013 Balance
Sheet and
Expectations
Chapter 1
Product
Exchanges
and returns
Chapter 2
Net Promoter
Score (NPS)
Chapter 3
The
omnichannel
Consumer
in Brazil
Chapter 4
FIPE/
Buscapé
Index
Chapter 5
10

Chapter 1
Balance Sheet
Despite the high inflation, near the upper limit of the target, and low economic
growth, 2013 was positive for Brazilian e-commerce. The sector registered R$
28.8 billion in sales throughout the year, which corresponds to 28% nominal
growth compared to 2012. The result exceeded expectations since, initially,
the expecation was that the sector would have a 25% growth.
Black Friday is one of the explanations for this result. The event which ocurred
on November 29th, generated R$ 770 million for the sector, breaking all of the
sales records in a single day. Another justification is the popularization of
mobile broadband. The offer for the simplest models of smartphones
connected people from the C and D socio-economic classes, which did not
have access to the internet, transforming them into Internet users and, in
many cases, online consumers. With all of this, the number of orders made
through the internet reached 88.3 million, which is 32% higher compared to
the previous year. However, the average ticket had a slight reduction of -4.4
worth R$ 327, reflecting the economic scenario.
Source: E-bit Information (www.ebitempresa.com.br)
Sponsors:Copyright E-bit - All rights reserved
12

Most-sold Categories
The "Fashion & Accessories" category kept the lead during the year, although
categories such as "Cosmetics and Perfumery/Personal care/Health" and
"Appliances" continued at the top sales categories. It was also possible to
notice an increase in the demand for smartphones and TVs during the second
semester.
Chapter 1
13

E-consumers
Throughout the year, 9.1 million people made their ﬁrst online purchase, thus,
the number of one-time consumers, i.e. who have already made at least one
purchase over the internet, reached 51.3 million. But from this total, 8 million
did not use e-commerce in 2013. Last year, there were 43.2 million active
consumers. Each one made an average of two purchases.
Chapter 1
14

Mobile Commerce
Mobile commerce has been growing quickly. In January 2013, transactions
completed through mobile devices corresponded to 2.5% of all online sales. In
December, that number was already nearly double: 4.8%. These results
demonstrate the strength of the segment, which will probably be consolidated
in the coming years. Currently, few online stores are prepared for the
navigation peculiarities generated by tablets and smartphones. In 2014, that
should begin to change. The tendency is that many retailers will begin to
direct efforts for adapting to mobility.
Chapter 1
15

Shipping
Free delivery is an important factor for e-consumer purchasing decisions.
Despite this, throughout the year, there was a reduction in free shipping offers,
which went from 58% in December 2012, to 50%, in December 2013.
This reduction should continue in 2014, due to companies ' search for
proﬁtability. However, consumers should ﬁnd more delivery options. With
shorter delivery deadlines transport costs will be more expensive, after all,
convenience and practicality generate costs.
Chapter 1
16

Net Promoter Score
The Net Promoter Score, or NPS, is an indicator that measures the satisfaction
and loyalty of customers. In 2013, the general NPS for Brazilian e-commerce
was good. The year started with a 45.94% rate , reaching 59.29% in October.
However, in December, there was a considerable indicator reduction, and the
registered NPS was 46.93% . This happened because some delay problems
ocurred with the delivery of the purchases made during Black Friday, due to
the number of orders, which were much higher than expected.
Even though, when comparing the December 2013 (46.93%) NPS with
December 2012 (40.96%), we noticed a signiﬁcant indicator improvement, a
sign that retailers have invested more and prepared better for the year-end
sales heated period.
Chapter 1
17

Expectations for 2014
Brazilian e-commerce will continue to grow in 2014, but the growth rates
should be a bit smaller. The sector´s nominal growth expectation is 20% in
relation to 2013, with R$ 34.6 billion in sales. Several factors should inﬂuence
the results, from the economy to the calendar, since this year, Carnival begins
late and the amount of long holidays is greater and we still have a World Cup
ahead of us as well as elections during the second semester.
Chapter 1
18

Expectations for 2014
• Economic Scenario
In 2014, unemployment rates should remain low, which is good. However, the
possibilities for salary increases are small, due to inflation. The economy
incentives must also decrease. Although the IPI for White Goods has not
increased at the beginning of the year, there were increases for other
products, such as those in the "Furniture & Decoration" category, which has
been an e-commerce highlight. The flexible installments and free shipping,
two of the main attractions in digital retail, should reduce gradually. All these
factors should contribute to making consumers more cautious when
purchasing.
• The World Cup
The World Cup will positively influence e-commerce sales. The games should
increase the demand for large and thin screen televisions. Sports goods,
soccer team t-shirts and products related to the competition should also be
among the top items for e-consumers.
• Trends
Mobility is one of the strongest trends for 2014, contributing not only to
mobile commerce, but to the growth of the show rooming phonmenon. Even
though a consumer is at a physical store, he has the possibility of finding prices
and information in other shops, through his mobile device. Thus, the purchase
decision relies on the convenience factor. The store itself, ends up operating as
a showroom, where the client can have contact with the product before
purchasing it.
Chapter 1
19

Chapter 1
• Consumers
By the end of the year, over 9 million people should start buying on the
internet, increasing the total number of one-time users to 60 million. Mobile
broadband growth should contribute to this result.
• More numbers
In 2014, the number of orders made through the internet is expected to grow
26%, compared to 2013, reaching 111.54 million. The average ticket should be
R$ 310, which represents a -5% reduction, if compared to the previous year.
20

Methodology
When purchasing, the consumer feels more secure and conﬁdent when he
knows he can exchange or return the product if there are any problems. In
e-commerce, the availability of these services and how easy it is to use them
is important, especially since contact between customers and the store is not
personal.
For this WebShoppers edition, E-bit prepared a study on the topic, in order to
identify consumer behavior on these situations and present a panorama of
these services in Brazilian e-commerce.
The data was collected between December 12th , 2013 and January 6th , 2014,
through online research, using a structured questionnaire, including one
answer questions and multiple answer questions. 2.501 people who have
purchased on the internet during the last 12 months, collaborated.
Chapter 2
22

Exchange and Return Intention
A signiﬁcant portion of respondents claimed to have already thought about
exchanging or returning some product purchased on the internet:
- 36% have already wanted to return some good.
- 40% have already considered exchanging a product.
Chapter 2
23

Categories with the greatest exchange and return intentions
The Top Five categories with the highest Exchange intention are similar to the
greatest return intention categories. Both include "Fashion & Accessories",
"Electronics", "Mobile Phones/Telephony", "Appliances" and "Informatics".
These categories are also part of the ranking of the electronic commerce
top-sales ranking (Chapter I).
Chapter 2
24

Efficiency of the exchange and return services
The product Exchange and return processes in Brazil must advance. Out of
every ten respondents, only three were able to perform an exchange, without
facing difficulties. This number is even smaller in regards to product returns.
Out of every ten respondents, only two managed to return a without facing
problems.
From the respondents, 33% thought about exchanging a product, but did not
try to. This number is higher in relation to returns: 39% already wanted to
return an item and did not search for a way to do so.
Chapter 2
25

Why don´t consumers try to exchange or return a product?
The reasons that lead consumers to give up on attempts to Exchange or return
a product are the same. In both situations, the bureaucracy of the processes is
the factor that most contributes to this kind of behavior.
Chapter 2
26

Negative Impact
The difficulties faced by consumers during the Exchange and return processes
has a negative impact for companies and e-commerce as a whole. Nearly half
of respondents stated that they stopped purchasing at stores where they had
problems. The same amount of people stated that due to the difficulties with
Exchanges/returns, they began purchasing less on the internet.
Chapter 2
27

Clarity in the exchange and return policies
Despite the difficulties faced during the Exchange and return processes, more
than half of the respondents agree, even if partially, that the stores are
transparent when communicating policies. Another important aspect is that
nine out of every ten respondents, understand that the transport costs in
these situations should be the retailer´s responsibility.
Chapter 2
28

Are shops ready for exchange and return processes?
Nearly half of the respondents believe, even if partially, that online stores are
prepared for the product Exchange and return processes, however, seven out
of every ten, agree partially or entirely that there are stores that are more
prepared than others.
Chapter 2
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29

Online Commerce X Traditional Commerce
Consumers have the perception that it is easier to Exchange or return products
purchased through traditional commerce. Out of every ten respondents, six
agree, even if partially, that these processes are more complicated in
e-commerce.
It was also clear that, in the case of shops that sell online, but also have
physical units, buyers expect there to not be barriers between both types
Exchange or return products. Eight out of ten, agree that the Exchange/return
should be made in the physical store and the online store, regardless of how
the purchase was performed.
Chapter 2
30

How NPS®
works
Loyal customers return often to purchase, buy additional products and
services, recommend the company to friends, and provide useful feedback and
these customers cost less for the company. Searching for a simple and
powerful tool to measure customer loyalty, Bain & Company created the Net
Promoter Score®
. This metric is calculated by answering a single question:
On a scale of 0-10, how likely are you to recommend our company (or this
product / service / brand) to a friend or colleague?
Thanks to the simplicity of the scale 0-10, companies can quickly and
effectively capture feelings and attitudes of their customers. When applying
this methodology, a second question is required to further understand what
motivates the likelihood to recommend:
What is the most important reason for the score you gave?
By answering these questions, customers fall into three well-deﬁned groups:
Chapter 3
32

• Promoters: People who give grades 9 and 10, who are loyal enthusiasts who
keep buying from a company.
• Passives: People who give grades 7 and 8, which are passively satisﬁed
customers.
• Detractors: People who give grades 6 or less, that are dissatisﬁed,
disappointed customers and that criticize the company to friends and
colleagues.
Chapter 3
33
®
Net Promoter, Net Promoter system and NPS are registered trademarks of Bain & Company, Inc.,
Satmetrix Systems, Inc. and Fred Reichheld

NPS®
summarizes these concepts in one single metric: the difference between
the percentage of "promoters" and percentage of “detractors".
Chapter 3
34

About E-bit’s NPS®
research
Since 2010, E-bit included in its online survey the NPS® question ("How likely
are you to recommend this store to a friend or relative?").
Currently, E-bit’s research is performed in two stages, to fully assess the
purchase and post sale experience: first, the web shopper answers a
questionnaire immediately after the purchase, and second, after the
scheduled delivery date (questionnaire is sent one day after the expected date
of delivery). The NPS® question is inserted in the second questionnaire.
It is Important to emphasize that this type of research, shortly after the
purchase, is the best way to receive feedback from the customer with
“freshness” (proximity of feedback with the moment of the experience) and is
the ideal form to guide processes of continuous improvement for the
company.
For this chapter, we are analyzing the results from surveys completed
between November 15th and December 31st, 2013. Therefore, the findings
described here, reflect the period of Christmas shopping and Black Friday. In
this period, approximately 90 000 responses were collected.
Chapter 3
35

Sponsors:Copyright E-bit - Todos os Direitos Reservados
Brazilian E-commerce NPS®
The general NPS®
of E-commerce in Brazil, in the period assessed, is 50 % - 67
% of the WebShoppers are promoters of the experience, while 17 % are
detractors and 16 % are passive. Looking at the data we notice that the NPS®
increases as the average purchase frequency of the consumer increases.
WebShoppers that have purchased more than 4 times in the last 6 months
have a lower percentage of detraction and this fact suggests that, as the
customers acquire expertise, their level of satisfaction increases, probably due
to a higher familiarity with online shopping that turns the choice of the store,
products and payment options easier.
As expected, customers loyal to a single store rate that store with a higher
NPS®
: more than 65% to loyal customer (frequent buyers).
Chapter 3
36

In the period assessed, the category leader in purchasing volume was Fashion,
however this category showed the lowest NPS®
among all categories. As the
second largest in volume of transactions, Cosmetics & Health surpassed all
categories in terms of loyalty and had the highest NPS®
, 60%, with 72% of
promoters and only 12% of detractors.
Fashion and Decoration had a higher percentage of detractors and lower NPS®
when compared to the other categories. Lower standardization and high
difficulty to make the product tangible through internet add a challenge to
these categories.
Chapter 3
37

Finally, NPS®
was measured under different delivery times and delivery status.
Although NPS®
has a tendency to reduce as the speed of delivery decreases,
especially when the promised time exceeds 4 weeks, no factor is more
impactful to reduce NPS®
as delay in delivery.
Deliveries scheduled up to two weeks maintain NPS®
higher than 50%, up to 3
weeks, there is a small reduction in the percentage of promoters and increase
in the percentage of detractors, but above 4 weeks dissatisfaction is clearer -
the percentage of promoters drops to 51% and detractors rises to 35% of the
transactions.
Accomplishing the promised deadline of delivery has a strong inﬂuence on
customer loyalty: when purchases arrived punctually, customers NPS®
is 71%,
with less than 6% of consumers detractors, but in cases in which the deadline
is not met, there are 69 % of detractors, resulting in a negative NPS®
of -52%.
Chapter 3
38

Reasons to promote or detract
One important step that follows the NPS® methodology is the analysis of the
motivator for the score given, that aims to identify the root causes of
promotion and detraction and thereby draw plans for improvements of the
customer experience.
In this research, the root-cause was analyzed trough the consumer
satisfaction in 12 criteria - 6, in the ﬁrst survey, related to the moment of
purchase, and other 6, the second survey related to the post sales and delivery
of the product.
The worst evaluated criteria for detractors follow this order: "On-time
delivery", "Service quality” and "Delivery Monitoring". When the product
doesn’t arrive on time, the client probably search for delivery monitoring tools
and contact the selling company for guidance.
For promoters, the criteria
for post sales were better
perceived than criteria for
purchase, although in the
ﬁrst group there are
important criteria for
promotion such as price,
payment options, etc.
Gap de satisfação entre promotores e detratores é muito
maior em critérios relacionados à entrega do produto.
Chapter 3
39

The value of a promoter customer
NPS®
is a tool that has clear link with the value generated for the company.
Promoters generate greater value for the company because consume more
and recommend more to new customers. There are several indicators that
show this differentiation in behavior of promoters, passives and detractors, for
example, frequency of purchase, average ticket per transaction, share of
wallet and number of recommendations.
In this research, we identiﬁed some of these indicators, that we call drivers of
value.
On the frequency of purchase, promoters are more assiduous than detractors.
Regarding the average ticket per transaction, promoters also generate more
value: spend more each purchase than passives and detractors. Finally,
promoters have a very high probability of repurchase, 96 %, while only 33% of
detractors said they would repurchase.
Chapter 3
40

By combining these three main drivers, that express the current purchase
frequency, the average spending per transaction and the tendency for future
behavior, we are able to estimate the revenue that each type of client is likely
to generate per year for the company. In the case of E-commerce in Brazil, a
promoter client generates 4x more revenue than a detractor client, even
without accounting for the effect of recommendations that can bring more
customers to the company, fact ampliﬁed today due to the impact of social
media in the web.
Thus, ensure a great customer experience that generates many promoters
and reduces detractors strongly contributes to the generation of value in the
E-commerce business.
Chapter 3
41

The Omnichannel Consumer
The omnichannel consumer wants to use all available shopping channels
(some at the same time), whether they are: smartphones, tablets, computers,
television, radio, direct mail, telesales and catalogues.
Retailers are looking for new ways to deal with this consumer, whether
through the reformulation of their pricing policies between channels,
investments in technology and processes or by building new logistic
structures.
The "Omnichannel Consumer in Brazil" study sought to answer the following
question: Are the sales teams in physical stores in Brazil prepared to receive
omnichannel consumers? A team of interviewers disguised as "Mystery
Shoppers" visited 60 shops in the city of São Paulo. A desk research was
performed to gather some data at the companies´virtual stores.
Studied Companies: Lojas Americanas, Casas Bahia, Livraria Cultura, Droga
Raia, Extra, Fast Shop, Fnac, Hering, Magazine Luiza, Marisa, Onofre, Ponto
Frio, Saraiva, Sephora and Walmart. The question script followed a
methodology and questionnaire developed by ABComm, Brazil Panels and
E-bit.
Collection Period: January 6th to 17th, 2014.
Products researched: Philco and Samsung Galaxy Tablet, Black Ferrari
Perfume , Flat LG Led TV, Tablet, Consul and Eletrolux Refrigerators, Philco 3D
and LG Smart 42’' TVs, Female Shirts, Male Shirts, Tempo e o Vento Book (Box)
and Letrozol 2,5 medication.
Chapter 4
43

Connected Sales Teams
In the case of a lack of products in the store´s stock, the misterious customers
wanted to know if the sales person would use the Internet in order to not lose
a sale. With this purpose, they evaluated if the professionals would check
product availability at the online store and, if so, whether they would
encourage the consumer to buy it through the digital channel.
When questioned by the clients about the Internet, two-thirds of the sales
people checked the availability of the product at the online shop. At this point
we didn't want to evaluate spontaneity, but instead the attitude of the
professionals and if they would have access to the Internet. Although all of the
researched companies had a virtual shop, less than half suggested that the
purchase be made through the internet.
Chapter 4
44

Indiference with the Chanel
When it comes to comparing prices between channels, some sales people
demonstrated aggressiveness (10%), when they realized that the client was
comparing prices through his smartphone. But indifference was predominate.
Almost half of them reacted this way. Refrigerator sales people were the ones
who showed greatest indifference with the price comparison between
channels (58.3%) while the TV sales people were the ones that were most
friendly (42.9%). When encouraged to comment about the Internet,
one-quarter mentioned the channel in a negative way.
Chapter 4
45

Price and Delivery Deadline Negociation
The pricing policy between channels is one of the most delicate and discussed
issues in the omnichannel strategies. Two-thirds of the sales people did not
accept to negotiate prices in order to reach the Internet levels, without,
however, presenting arguments for such negative response.
In regards to the deadline for receiving the purchase, immediate delivery is
the biggest advantage of the physical store, followed by the ability to "touch,
feel the product". However, 30% of the traditional stores would take more than
two days to deliver the products to the mysterious clients. According to E-bit,
the average e-commerce delivery deadline, in São Paulo-Capital, at the date
when this researchwas performed, is 7.6 days (period: January 6th, 2014 to
January 17th , 2014).
Chapter 4
46

Integrated Chanels: the connected stores
When analyzed regarding some of the omnichannel capacities,
Americanas.com, Saraiva, Extra and Magazine Luiza are the most prepared.
From the studied stores, Marisa and Saraiva are the only ones that offer wi-ﬁ
for customers, while Magazine Luiza, Fast Shop, Americanas and Saraiva are
the ones that offer a totem so consumers can buy at the online store, from
within the physical store.
Chapter 4
47

Conclusions
There's a long path towards channel integration. Companies must prepare not
only for comercial policies, strategies, technology and processes, but also, and
primarily, in relation to training and communication with their sales force.
Questions such as: "pay or not pay commissions to sales people and malls for
sales generated through totems", are still omnichannel entrance barriers. The
truth is that the Brazilian consumer is increasingly present in more than one
channel at the same time.
Chapter 4
48

FIPE/Buscapé Index
Considering a 12 month period, from January 2013 to January 2014, the FIPE
/Buscapé Index, a monthly report which analyzes electronic commerce pricing
in Brazil, registered a -1.78% drop.
Chapter 5
50

In January 2014, a series of 36 months of the FIPE /Buscapé Index was
completed. During this period, it was possible to observe a price drop during
78% of the months. There was a price increase during eight months only, and
ﬁve of them, were in 2013, which reﬂects the impact of the Brazilian real
devaluation for imported products.
Chapter 5
51

From the ten product groups analyzed by the indicator during 2013, six
presented a price reduction and four registered increases. The group with the
greatest price reduction was "Fashion & Accessories" (-7.70%), followed by
"Telephony" (-7.32%), "Photography" (-6.12%), "Electronics" (-5.43%),
"Informatics" (-0.70%) and "Appliances", accordingly.
Chapter 5
52

FIPE/Buscapé Index comparison with oficial inflation rates
The -1.78% reduction of the FIPE /Buscapé Index , from January 2013 to
January 2014, contrasts with the increases in the general consumer price
indexes, such as the IPCA-IBGE and the IPC-FIPE, which had an annual 5.9%
and 3.66 percent increase, accordingly , during the same period. A significant
portion of these differences can be explained by the following factors:- the
FIPE/Buscapé index monitors a package of products which is different from
what was evaluated by the general price indexes, i.e. only the items that are
commercialized in a more significant form through the internet; -The weight
of the products that are part of the FIPE/Buscapé Index are different in regards
to the same products in the generic indexes;
-The distribution channel, monitored by the FIPE/Buscapé index is exclusively
e-commerce, while the other indexes monitor physical and traditional
channels.
Chapter 5
53

The Value of Price Researching in Brazilian E-Commerce
In 2013, B2C e-commerce in Brazil generated R$28,8 billion in sales and
reached a 28% nominal growth rate. During the same period, the FIPE
/Buscapé Index had an average -3.8% reduction. By analyzing this data, it is
possible to identify a real growth of 33% in e-commerce sales, much higher
than the 2.3% GDP, according to the IBGE, and traditional retail. Some factors
can explain the sector´s success, such as the increase in the number of homes
that have computers, the diffusion of broadband access, the maturing and
consolidation of online retail and operations´ security, from payment forms to
delivery reliability.
Other elements, that are intrinsic to e-commerce, should influence a
significant long term growth. One of them is long tail, which allows the sector
to offer more niche-oriented products, generating a larger amount of virtual
commerce sales, if compared to physical sales. Consequently, there is the
dissemination of small shops, that are more specialized, which, for consumers,
translates into greater choice possibilities.
However, variety really gains value if it is added to search engines and price
comparison sites, which make it possible to find the desired item easily,
optimizing time and providing pricing transparency, which results in saving
money and generates greater competition among retailers. When considering
that the operating costs for e-commerce are smaller, it is possible to estimate
that the prices of online stores are lower, when compared to traditional retail.
Chapter 5
54

Preliminary research done in the United States, France and India, has
identiﬁed that online retail prices in these countries are, on average, 10%
lower in relation to physical commerce options. Although there is no survey
like this in Brazil, if we consider that online prices are also 10% smaller and
consider a R$ 28.8 billion revenue, Brazilian consumers who bought on the
Internet in 2013 would have saved R$3,2 billion.
Chapter 5
55

The Economic Research Foundation Institute(FIPE), represented by Prof.
Sergio Crispim, is responsible for the calculation methodology of the FIPE
Buscapé price index.
Contact: (+55 11) 3767-1700 / 3767-1701 / 3813-1444
Chapter 5
56

Main Clients
57

Credits /
About Fecomercio SP
The Commerce Federation for Goods, Services and Tourism of the State of São
Paulo (FecomercioSP) is the main trade union entity in São Paulo for the
Commerce and Service sectors. The Entity which is Responsible for
administering, within the State, the Social Service for Commerce (Sesc) and
the National Commercial Education Service (Senac), represents a segment of
the economy that generates more than 1.8 million various size business
activities , and unites 154 employers´ associations which account for 11% of
the GDP in São Paulo – about 4% of the Brazilian GDP – generating nearly ﬁve
million jobs.
Copyright E-bit - Todos os Direitos Reservados
58
Sponsors:

Credits /
About Câmara-e.net
The Brazilian Chamber of Electronic Commerce (Camara-e.net), founded in
May 7th , 2001, is the leading multi-sector entity for Digital economy in Brazil
and Latin America, focused on electronic business as a strategic factor of
sustainable economic development in the 21st century. Câmara-e.net has the
mission of training individuals and organizations for the safe practice of
electronic business, through the generation and dissemination of leading
knowledge, as well as defending consensus positions between the main
national and international public and private agents, that promote information
and communication technologies. One of Camara-e.net´s main priorities is
preparing and proposing public, regulatory and market policies, that
encourage the production and universalization of the beneﬁts of information
and communication technologies. The entity's partners represent leading
companies from the main sectors of the Brazilian and worldwide economy.
Access www.camara-e.net.
59
Sponsors:

Credits /
About Bain & Company, Inc.
Bain & Company, a global leader in business consulting, advises clients about
strategies, operations, technology, establishing companies, mergers and
acquisitions, developing practices that ensure transparency to clients, during
change and decision making processes. The consulting group establishes
synergy-based work with clients, and their fees are charging according to
results. Bain's clients ' performance surpassed the stock market by 4 to 1. Bain,
founded in 1973 in Boston, has 50 offices in 32 countries, and has worked with
more than 4.600 companies among multinationals, private and public
companies throughout all sectors of the economy.
60
Sponsors:

Credits / About the Brazilian
E-commerce Association (ABComm)
The Brazilian Electronic Commerce Association (ABComm) emerged with the
purpose of boosting the e-commerce sector with relevant information, as well
as contributing with its growth in the country. The Association brings together
representatives of virtual stores and service providers in the information
technology, media and payment form areas, performing with Government
institutions, in order to support the sector´s evolution. With over 3.500
associates, the nonproﬁt organization has speciﬁc boards created to boost the
entire sector, including: New Business, Logistics and Operations, Government
relations, Research, International Relations, Payment Forms, Training,
Technological Development, Entrepreneurship and Startups, Legal, Metrics
and Market intelligence, Electronic Crimes and Marketing.
61
Sponsors:

Credits /
About Brazil Panels
Brazil Panels (http://www.brazilpanels.com.br) operates in the online and
offline research and data collection market, with extensive experience and a
variety of methodologies and advanced technologies.
We conduct research with the highest quality, speed and precision, adding on
value based on the expectations of our customers, helping decision-making
through various techniques associated with a series of quantitative and
qualitative study solutions.
We have complete solutions for online and offline research and one of the
greatest B2C and B2B panels in Brazil with more than 700.000 registered
members.
62
Sponsors:

Press Information
Disclosure of E-bit Data

E-bit requests to be referred to as a source of information in any academic
study, press release, article, editorial or news article stating data that was
collected in studies about the Brazilian e-commerce market, and especially
the WebShoppers report.
We reinforce that the data is E-bit´s propriety, and therefore, those who use it
must always inform the source, in order to enhance the credibility of the
information and avoid that data disclosed by the company is attributed to
other sources.
63

Pedro Guasti
VP of Institutional Relations at the Buscapé Company
Executive Director of E-bit
negocios@ebit.com.br
+55 11 3848-8730
64

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