WebShoppers 22ª Edição - Inglês

22nd edition

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Copyright e-bit – All rights reserved

Índice

What’s WebShoppers............................................................................................................................. ........... 03

About e-bit............................................................................................................................. .......................... 04

WebShoppers data: Methodology..................................................................................................................... 06

Executive summary............................................................................................................................. ............. 08

Report Structure............................................................................................................................................... 09

Balance of the first two quarters of 2010.......................................................................................................... 10

Six months of success!

Celebrating online!

The best selling categories

Part II – Social Netwoks............................................................................................................................. ...... 15

E-commerce and Social Media

Differences among e-consumers?

What social media users buy online?

Part III – Online Shopping Resistance Survey................................................................................................. 19

To buy online is irresistible!

I visited but didn’t buy

Part IV – Forecast for the last two quarters of 2010....................................................................................... 22

The party is not over yet!

More people buying online!

The average ticket may be...

About e-bit............................................................................................................................. ......................... 26

About camara-e.net............................................................................................................................. ........... 28

Contact us........................................................................................................................... ............................ 29

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What’s WebShoppers

An e-bit’s initiative, WebShoppers goal is to spread out essential information for the understanding of Brazilian internet users shopping behavior and their relation with e-commerce.

WebShoppers analyzes the electronic commerce evolution, the changes in e-consumers behavior and preferences, and it also attempts to find aspects to be improved in Brazilian’s e-commerce development.

http://www.ebit.com.br/




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About e-bit

Present in the Brazilian market since January 2000, e-bit achieved a highlight spot in the electronic commerce development in the Country, becoming a reference in e-commerce information.

Through a sophisticated data collecting system, e-bit generates daily detailed information about e-commerce , considering online consumer data for final purchases in more than 2,500 Brazilian virtual stores.

e-bit has collected over 9 million e-consumers evaluation questionnaires. e-bit offers its services to companies as well as to online consumers.

To the consumers, e-bit works as an internet shopping adviser, by publishing in its website (www.ebit.com.br) virtual stores evaluations from people who actually shopped at them.

On the other hand, information regarding services directed to the companies may be found on e-bit’s institutional site (www.ebitempresa.com.br).

e-bit Certification – BitConsumidor (bitConsumer) is a groundbreaking virtual stores evaluation service in Latin America and also an electronic commerce reference in Brazil. e-bit has an agreement with more than 2,500 virtual stores whose consumers are invited to fill out a survey right after they close their purchase on the internet. There are two steps: the first one occurs immediately after the purchase, and the other one, some days after it, to evaluate the product delivery. It’s an automatic and simple process, done on the internet.

E-commerce Information – The questionnaires, regarding virtual stores services quality, supplies e-bit’s database. By processing them, e-bit emits reports that profile online consumers – gender, age, income, educational level, habits –and also evaluate comparatively the virtual stores services, payment methods, revenue, etc..


http://www.ebitempresa.com.br/

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About e-bit

Retail Monitor – apart from the sales follow-up reports performed in Brazilian e-commerce, e-bit also develops reports to monitor virtual consumers purchase intentions. This product, called “Retail Monitor” enables you to evaluate the most searched categories, products and brands by consumers at the time they use internet to execute a purchase. Find out more information concerning this brand new service by sending an e-mail to [email protected].

Survey Panel – e-bit owns a panel of high qualified respondents, basically formed by more than one million virtual consumers. They can be invited to participate in quantitative and qualitative surveys through online access with own incentive: “bits”. It is possible to perform a sample pre-segmentation by means of information – gender, age, income, educational level, geographic area and subjects of interest.

E-mail Marketing - bitMail allows communication with a highly qualified public: e-bit associates base. It is mainly composed of e-consumers, an adult public with high purchasing power and countless segmentation possibilities. bitMailuses technological resources that enable an excellent return to the client supported on permission marketing (opt-in, records unity control).

Advertising on e-bit’s website – www.ebit.com.br website is used by virtual consumers as a reference site for their online purchases, being monthly visited by more than 400 thousand different users. In their pages, advertisers and virtual stores can spread their products and services to an adult public with high purchasing power, obtaining an excellent return insales and brands publicity.

bitVeloz - is a performance monitor, which simulates one's access to online stores, 24 hours a day and it's 100% automated. The calculation to measure the web pages performance is done through simulating a purchase in these stores, using pre-configured parameters. Among other features, bitVeloz sends real time alerts to the managers, reporting unavailability so immediate actions can be taken.

mailto:[email protected]


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About e-bit

E-customer Retention Management – Receiving complaints from clients should be seen as a gift in electronic retail. The worst client is the one who’s unsatisfied with the purchase, doesn’t complain but won’t go shopping in that store again. Thinking about that, e-bit developed a special product for those stores that participate in e-bit Satisfaction Survey, and that can now choose to receive unsatisfied clients comments in real time, with the order number. This way, it is possible to immediately detect the eventual problem and act in order to solve it and retain the client, converting an unsatisfied customer into a loyal one. Find out more information concerning this e-bit innovation by sending an e-mail to [email protected].

With this 22nd WebShoppers edition, e-bit expects to contribute for internet and e-commerce development in Brazil.

Enjoy your reading!

e-bit Team

mailto:[email protected]

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WebShoppers data: Methodology

WebShoppers, in its 22nd edition, uses information originated from surveys performed by e-bit with more than 2,500virtual stores and its e-consumers panel.

bitConsumer Survey

Since January 2000 e-bit has collected over 9 million questionnaires answered after online purchase process through bitConsumer system.

It adds more than 160,000 new questionnaires to that amount every month.

e-bit data is collected from online buyers, immediately after their check-out. BitConsumer allows purchasers to evaluate not only the store and shopping experience, but also the post-sale service, the delivery service and the probability of returning to the virtual store.

This information, compiled, monthly generates Market Intelligence reports that indicate the e-consumer social and demographic profile, as well as the most sold products, most used method of payment, among other information.

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Executive summary

The Brazilian e-commerce grew 40% in the first two quarters of 2010 compared to the same period in 2009, reaching

sales of R$ 6.7 billion and average spending of R$ 379. The forecast for the end of 2010 is R$ 14.3 billion.

Until the end of the first two quarters of 2010, 20 million people have bought online at least once. By the end of the year,

this number should reach 23 million.

The best selling e-commerce categories in the first two quarters of 2010: “Books, Magazines and Newspaper

Subscriptions”, “Appliances”, “Health, Cosmetics & Medication”, “Computers” and 'Electronics'.

The World Cup incremented online sales during the 2nd quarter specially because of flat screen TV's and sporting goods.

The e-consumer is becoming more confident in buying online. The customer satisfaction with services offered by theonline stores in Brazil reached 86% during the first two quarters of the year.

55% of e-consumers who made an online purchase motivated by social networks are women.

When it comes to age, buyers motivated by social networks are seven years younger than those motivated by other

sources: 34 to 41 years.

Analyzing the preferred categories of social network consumers motivated, Apparel comes in first place, with 20% of

transaction share.

According to data collected during the “Online Shopping Resistance Survey”, e-consumers who visited online stores and

didn’t buy any item, 62% responded they were just checking price, freight or total order cost, and looking for promotions

and discounts.

86% of the respondents said they only looked at some items before leaving the store, without starting the buying

process. 14% said they had started the shopping process, but ended up not completing it.

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Estrutura do relatório

PART I

Social NetworksPART II

PART III

PART IV

Online Shopping Resistance Survey

Forecast for the last two quarters of 2010

Balance of the 1st two quarters of 2010

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PART I


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The year of 2010 began at full throttle for Brazilian e-commerce. The first six months are gone but left good numbers to the

industry. The financial volume during this period represented R$ 6.7 billion, a 40% growth compared with the same period of

2009, when revenues reached R$ 4.8 billions. These numbers show us that in 2010, e-commerce is wealthy and still surpassing

expectations.

Revenues R$ 6,7 billion

Average Spending R$ 379

% of grow compared with the same period of 2009 40%

A consequence of this is that the number of e-consumers reached 20 million people who made at least one online purchase.

In the middle of last year there were 17.6 million users. This also contributed to the high volume of orders made in those first

six months: 17.8 million.


Source: e-bit Informação (www.ebitempresa.com.br)


Observing the main reasons for the industry’s growth, the results are not surprising. Unshaken by the global crisis that

affected the economy from late 2008 to mid 2009, the electronic commerce has been strengthened, especially by the return of

consumer access to credit and more confidence in buying online. Factors such as the entry of new players, consolidation and

mergers between large retailers helped to boost confidence in this channel, bringing new consumers to e-shopping and

increasing the industry numbers.

The six months success

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E-consumers are becoming more confident in buying online. According to a survey by e-bit in partnership with Movimento Internet

Segura (MIS), committee of Câmara Brasileira de Comércio Eletrônico (Camara-e.net), on average, 86% of Brazilian consumers

were satisfied with e-commerce in the first two quarters of 2010.




Revenue growth – 1st two quarters

0.30.7

1.8

3.8

6.7

2002 2004 2006 2008 2010

Billions(R$)

84.50%

85.00%

85.50%

86.00%

86.50%

87.00%

Jan/10 Feb/10 Mar/10 Apr/10 May/10 Jun/10

e-bit / Internet Segura Customer Satisfaction Index

* Level of excellence set by Camara.e-net

*

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One of the most striking features of e-commerce is the power that the industry shows in festive periods such as Mother's Day

and Valentine's Day. In 2010, these two dates represented R$ 1.24 billion in revenues for e-commerce that means 18% of the

total revenues for the first six months!


Celebrating online

Books, Magazines and Newspaper Subscriptions 1st

Appliances 2nd

Health, Cosmetics & Medication 3rd

Computers 4th

Electronics 5th

Best selling categories – 1st two quarters of 2010


Mother's Day, indeed, is the second most important seasonal date for e-commerce, Christmas is first. We should remember

that in 2010 the World Cup also raised the share of categories such as "Electronics", especially TV's.

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Since last year, e-commerce has undergone changes in the ranking of categories. In June 2009, for example, the category

Appliances supplanted books, magazines and newspapers subscriptions, and ranked first, driven mainly by taxes reduction

for this segment, which lasted from mid-April 2009 to January 2010.


About best selling categories

But the excellent performance in appliance sales didn’t stop there. The category came from 4th to 2nd in the first two

quarters, with 14% of orders compared with 15% of books, magazines and newspapers subscriptions. The top five list was

completed with Health, Cosmetics & Medication, Computers and Electronics.

Another striking feature of the first two quarters of 2010 was the average ticket growth: R$379. During the same period last

year, it was R$ 323, an increase of 17%. The reason for this is the regularity in the sales of products with higher value

during 2010.

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PART II

Social Networks

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Social Networks

E-commerce and Social Media

One of the world’s biggest trends in recent years are the social networks. Initially used to meet people, get in touch with

friends, and be connected to a large network of relationships, these virtual places are starting to be seen also as a great

opportunity to do business online.

According to a study conducted by e-bit in the 2nd quarter of 2010, using data collected in the checkout process of virtual

stores, 55% of e-consumers who made a purchase over the Internet influenced by a social network are women, which

indicate a greater propensity of this audience in being seduced by offers or recommendations made on social websites. In

general, this share is exactly 50% men, 50% women.

Social networks have become not only an effective channel to find online stores, but an opportunity to show brands and

products to e-consumers and Internet users who are about to make their first online purchase.

Women50%

Men50%Women

55%

Men45%

Social Network motivated E-commerce in general


Sample 2.924 Sample 603.380

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Social Networks

Differences among e-consumers

If we separate the profile of users who have been influenced by social networks in their purchases, with the e-consumers

coming from other sources (comparison shopping, banners, search engines, etc.), it is possible to observe some

differences. Buyers from social networks are on average seven years younger than other buyers: 34 years vs. 41

27% of the respondents motivated by social networks are between 35 and 49 years old, compared with 39% of consumers

on the Internet in general. For consumers between 18 and 24 years, we have respectively 21% vs. 8%.

Because they are younger and many aren’t working yet, e-consumers influenced by social networks have in average 10%

less income than e-consumers in general.

The study also shows that 65% of Internet users who bought online influenced by social networks are light users (low

frequency of purchase), while 35% are heavy users (high frequency of purchase). This difference can be explained by the

lower average age, as mentioned before, of users that came from social networks.

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Social Networks

What social network users buy online?

Analyzing the preferred categories of the consumers influenced by social networks, Apparel comes in first place, with 20%

of transaction share. This category represents 4% of total sales in e-commerce. Parallel to this, e-consumers motivated by

other sources bought more expensive products such as Appliances, for example, that represents a 14% share of the total e-

commerce revenue. For this reason, their average ticket is higher than the R$ 269 of the consumers influenced by social

media.

According to data from eMarketer*, collected during the first quarter of 2010, users who spend more time on Facebook also

spend more money online shopping than Internet users who spend less time on Facebook, with an average ticket around

US$ 67. Users who reported using Twitter with frequency, spend more money per purchase than those who use Twitter less

frequently: US$ 75 vs. US$ 63 respectively.

*http://www.emarketer.com

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PART III

Online Shopping ResistanceSurvey

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The growth of the Brazilian e-commerce is related mainly to the good work of online stores in converting their offers into sales.

The goal of every online retailer is to make their client reach the final checkout page of the process. When this process is not

completed, it is very important to comprehend why the customer abandoned the shopping cart and made the changes to solve

the problems that caused it.

Keeping this in view, e-bit prepared for this WebShoppers edition, a special study about online shopping resistance, to

understand why e-consumers do not finalize an online purchase. The period of data collection was from 07/14/2010 to

07/16/2010 when 5,600 responses were collected.

According to data collected in the survey, 90% of respondents said they visited an online store during the past week but decided

not to buy anything, sign that people who really bought , probably visited other stores before making a final decision.

E-consumers who visited online stores and didn’t buy any item, 62% responded they were just checking price, freight or total

order cost, and looking for promotions and discounts. Another relevant fact is that 86% of respondents said they only took a

look at some items and then left the store, without starting the buying process. 7% said they had already started the process,

but ended up abandoning the site while another 7% have added some products to shopping cart, and then left the store.

I visited but didn’t buy

Buying online is irresistible!

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Just took a look at some products and left the store

86%

Added some products to shopping cart, and then

left the store7%

Started the process, but ended up abandoning the

site7%

Sample: 5.048Source: e-bit Informação (www.ebitempresa.com.br)

Analyzing why consumers who were closer to completing the purchase (added the product to shopping cart and began the

process of finalizing the purchase) but have not, it seems that the main reasons were the shipping price, indecision about which

product to purchase or the total price being higher than expected.

On the other side, an important result of the study is that the price is not the main reason for those users who only looked at

some products and then left the store. For them, “no intention to buy that day" was the reason for the abandonment.

One other interesting point is that 40% of respondents visit the online stores where they choose not to buy, weekly, while 9%

said they had entered the virtual store for the first time.

Percentage of consumers and the abandonment of the purchase

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PART IV


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The party is not over yet!

The Brazilian e-commerce numbers in 2010 has increased higher than expected, but may be even better. All this because,

historically, the last two quarters of the year are usually more relevant and may represent up to 55% of total sales of the year.

It’s expected during the period between July 1st and December 31st, that online retailers reach R$ 7.6 billion in sales of

consumer goods (not including vehicles and online auction).

Thus, the total revenue of R$ 14.3 billion is expected for this year, which represent growth of 35% compared with 2009 revenue,

when Brazilian e-commerce reached R$ 10.6 billion. These numbers overcome the initial forecast of R$ 13.6 billion made by e-

bit for the 21st edition of WebShoppers in March 2010.

2.5

4.4

6.4

8.2

10.6

14.3

2005

2006

2007

2008

2009

2010*

Billions (R$)


*forecast

Revenues

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In the second quarter of the year, the World Cup was a strong factor of influence for e-consumers, whom chose to spend on

products with higher costs, such as flat screen TV's. To have an idea, the sales of televisions in the country grew by 75% in the

first two quarters of this year, compared with the same period last year. This number was released in July by the National

Association of Manufacturers of Electronic Products (ELETROS).

However, as it depends on the e-consumer purchases, it will remain increasing for last two quarters. Also because this period is

marked by three special dates for the retail: Father's Day (25/07 to 08/07), Children's Day (09/27 to 10/11) and Christmas (11/15

to 12/24). By the way, Christmas is the most important date for e-commerce: contributing with R$ 1.63 billion in 2009.

More people buying!

In 2010, the number of people who made at least one purchase on the Internet should increase considerably, 23 million e-

consumers are expected by the end of the year. At the end of 2009, e-bit had registered 17.6 million online buyers. This number

becomes even greater if compared with the 2006 World Cup period. To have an idea during the World Cup in Germany four

years ago, only 6 million people were shopping online.

Number of e-consumers*(Millions)

2,0 2,63,4

4,8

7,0

9,5

13,2

17.6

23,0

02 03 04 05 06 07 08 09 10*

Source: e-bit Informação (www.ebitempresa.com.br)Period: from 2002 to 2010

*people that made at least one online purchase


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The average ticket may be...

Following the trend of sales of products like Electronics, Computers and periferals and Cell Phones, the average ticket must be

influenced and end 2010 in R$ 375

R$ 230

R$ 308 R$ 296 R$ 328

R$ 375

R$ -

R$ 100

R$ 200

R$ 300

R$ 400

2002 2004 2006 2008 2010*


*forecast

Average ticket

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About e-bit

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About e-bit

Present in the Brazilian market since January 2000, e-bit achieved a highlight spot on the electronic commerce development in the Country, becoming a reference in e-commerce information supply..

e-bit offers its services to companies as well as to online consumers. To the consumers, e-bit works as an Internet shopping adviser, by publishing virtual stores evaluations of people who actually shopped at them (at its website: www.ebit.com.br). On the other hand, information about services directed to the companies may be found on e-bit's institutional website (www.ebitempresa.com.br).

Main clients



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About camara-e.net

The Brazilian Chamber of Electronic Commerce (Camara-e.net), was founded in May 7th, 2001, and is the

leading multi-sectoral body of the Digital Economy in Brazil and Latin America, aimed at the electronic business

as a strategic factor in sustainable economic development century. Its mission is to empower individuals and

organizations for the safe practice of electronic business, by generating and disseminating knowledge leading

and advocating consensus positions opposite to the main public and private, national or international, related to

the promotion of technologies information and communication. Among the main priorities of the camara-e.net is

formulating and proposing public policies, regulatory and market to encourage the production and the

universalization of the benefits of information technology and communication. The 160 members of the

organization representing the leaders of the main sectors of the Brazilian economy and world.

Access www.camara-e.net.

http://www.webshoppers.com.br/RedirCamara-e-net.asp?utm_source=webshoppers21&utm_medium=e-mail_publicacao-webshoppers&utm_campaign=camara-e-net_pag34







http://www.webshoppers.com.br/RedirCamara-e-net.asp?utm_source=webshoppers21&utm_medium=e-mail_publicacao-webshoppers&utm_campaign=camara-e-net_pag34-logo

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Contatos

www.ebitempresa.com.br

Pedro GuastiGeneral Director

Alexandre UmbertiMarketing and Products Director

[email protected] 11 3047-4999

www.camara-e.net

Gerson Rolim

[email protected] 11 3231-0445

Technology

WebShoppers 22ª Edição - Inglês