Social commerce has become increasingly popular in Brazil over the past few years. This trend was bolstered by the emergence of Facily, a Brazilian social commerce marketplace that quietly raised $366 million in less than a year and is now valued at $850 million. Facily’s rapid growth has highlighted the booming social commerce trend in Brazil, and it is now one of the leading online marketplaces in the country.
This article examines why social commerce is growing rapidly in Brazil, looking at key factors such as accessibility, affordability, and convenience that have driven its popularity.
Overview of Social Commerce
Social commerce, also known as social media commerce, is rapidly growing in Brazil, with platforms such as Brazilian social commerce marketplace Facily quietly raising $366M in less than a year, now valued at $850M. This growth is driven by people’s increased reliance on social media and the easy accessibility of goods and services through these platforms.
In this article, we discuss the growth of social commerce and its implications for the Brazilian economy.
Definition of Social Commerce
Social commerce is the use of social media platforms, as well as related activities involving user-generated content, to conduct commercial transactions. It is a type of e-commerce in which people buy and sell products, services, and digital content on social networks and other web platforms. Social commerce has become increasingly popular in recent years as more people look to purchase products and services online.
The term’ social commerce’ was coined by Ted Rubin in 2006. The idea behind it was to combine two elements: the sociability of online social networks, such as Facebook, and the capability of its users to purchase products or services seamlessly online. Businesses can leverage this combination by creating personal relationships with customers through social networks, thereby strengthening their brand loyalty and increasing conversions from potential customers through targeted advertising campaigns based on customers’ buying behavior.
Social commerce has become a major player in the retail industry because it provides businesses with two important advantages that traditional retailing does not: direct access to customers through popular social media sites (as compared with traditional sources like catalogs) and a low cost of entry for entrepreneurs who don’t have the resources necessary for starting their physical store locations. Ultimately, this has led to increased competition among companies in the e-commerce space as they fight for attention on crowded marketplaces like Amazon or eBay.
Brazilian social commerce marketplace Facily represents one success story within this context – Facily has experienced tremendous growth since its founding approximately a year ago, reaching an impressive $366 million valuation after raising $80 million total in venture rounds since October 2019. Its success illustrates how companies can leverage their powerful web presence combined with dedicated customer service strategies to build relationships with their existing partners while rapidly scaling their operations beyond Brazil into Latin America and eventually worldwide.
Benefits of Social Commerce
Social commerce is an innovative form of eCommerce leveraging social media platforms as both a customer acquisition channel and a sales platform. It goes beyond traditional online platforms like shops or marketplaces, enabling brands to create direct relationships with their end-users via social networks like Twitter, Instagram, Facebook, and Snapchat.
Using social commerce offers numerous advantages for businesses looking to maximize their reach and engage more customers. Here are some of the benefits that businesses can enjoy by adopting social commerce:
1) Increased Reach: Social commerce allows brands to reach more potential customers directly through their existing followers and other platforms, such as influencer campaigns. Moreover, using a mixture of organic content alongside paid channels can help increase organic visibility from potential customers who may not yet be familiar with the brand.
2) Increased Engagement: Facilitating consumer interactions on the platform helps grow an understanding of one’s consumer base, enabling companies to tailor marketing efforts towards those more likely to convert. This furthers engagement which in turn can lead to higher levels of customer loyalty and satisfaction.
3) Low Setup Costs: Social commerce relies on pre-existing infrastructures such as existing websites or consumer databases meaning that there is often no need for costly setup fees or ongoing maintenance costs associated with traditional online stores or marketplaces.
4) Improved Shopping Experience: Customers who shop in this way are likely to have an experience that is catered to their personal needs, interests, and preferences — from tailored product recommendations based on past interactions to questionnaires specifically designed to gain feedback about user experiences within the platform itself — leading to higher rates of conversion and increased levels of customer retention.
Growth of Social Commerce in Brazil
The Brazilian social commerce marketplace, Facily, recently raised $366 million in less than a year, resulting in a total valuation of $850 million. This remarkable achievement was driven by the growth of social commerce in Brazil.
In this article, we will discuss the reasons why social commerce is flourishing in Brazil and how Facily’s success contributes to this growth.
Reasons for the Growth of Social Commerce in Brazil
In recent times, social commerce has emerged as a powerful tool to promote and sell various products in Brazil. Social commerce is the buying and selling of products or services via social media networks. It is estimated that Brazil’s social commerce market will be worth around US$15 billion by 2022, thanks to its huge population and favorable conditions for digital disruption.
The growth of social commerce in Brazil is driven by both supply-side and demand-side market dynamics. On the supply side, Brazil’s budding e-commerce scene has enabled merchants to leverage their existing operations and leverage new technologies to provide more value to customers with enhanced social media experiences. Also, Brazilian stores and brands have become increasingly sophisticated when it comes to creating promotional campaigns on different platforms, thus creating a high switching rate between platforms for customers looking for the best deals.
On the demand side, Brazilian shoppers have taken full advantage of the burgeoning access to digital technologies that enable easy discovery, comparison, and purchasing. Additionally, reducing mobile data charges has lowered the friction associated with accessing online stores, enabling easier discovery through the proliferation of online marketplaces that help bridge gaps between buyers and sellers across geography or industry-type barriers. As a result, Brazilian consumers are now leveraging these online marketplaces more than ever before, which in turn is driving sales growth for both merchants as well as marketplace providers such as Facily, which recently raised $366M in less than a year, now valued at $850M – underlining their expertise and market relevance when it comes to Brazilian Social Commerce Marketplace solutions.
Overall, with advanced technology solutions driving positive economic growth coupled with higher penetration rates of digital devices coupled with favorable policies providing access plus boosting useful digital products such as Facily; it won’t be long before we begin seeing dramatic changes in this sector so don’t be surprised if we soon hear about some startups based on Brazil’s booming social commerce sectors raising large sums at lightning speed!
Examples of Social Commerce Platforms in Brazil
Social commerce has been growing rapidly in Brazil over the last decade, driven by a surge in online consumer spending and the emergence of a vibrant digital startup scene. As a result, several digital marketplaces have emerged – each aiming to provide Brazilian shoppers with an easy and convenient way to purchase products online, with PayPal’s own Brazil Street Market being one notable example.
Other key players within Brazil’s social commerce space include the following: Facility. Established in 2014 and backed by investors including SoftBank and Goldman Sachs, this Brazilian social commerce marketplace has quietly raised $366 million in less than a year – valuing it at over $850 million. On Facily’s platform, shoppers can buy from retailers across different categories such as clothing and beauty products, as well as connect with each other around their purchases.
Lema21 is another popular platform for consumers looking for affordable fashion and clothing items that are updated daily – it offers free express shipping on orders over ₢199 (around US$48). BOOMER is another example that has achieved significant traction; specializing in personalized cosmetics products, this platform leverages artificial intelligence to curate sets of cosmetics customized to customers’ needs. Complementing its almost 4000 different brands on offer, BOOMER provides customers with detailed product information beyond price comparison and discount selection features.
Furthermore, there’s Arouca and Quem Disse Berenice. – two platforms focused on helping customers learn more about beauty products and find advice from experts; sales here are largely driven by influencers on their respective platforms who provide feedback related to various makeup brands and services. Finally, Peixe Urbano is dedicated to offering users discounts on all sorts of products from retail stores, works as a digital discount marketplace partnering with many retail locations across all major cities in Brazil making discounts more accessible for consumers during their everyday shopping trips back home or during tourists visits to the country itself.
Brazilian social commerce marketplace Facily quietly raises $366M in less than a year, now valued at $850M
Brazilian social commerce marketplace Facility has become one of the hottest startups in the business, raising $366 million in less than a year and now valued at $850 million. Facily’s success is due to its unique approach to the Brazilian market, leveraging social media networks and an innovative payment system to create an easy and efficient shopping experience.
In this article, we will explore the factors behind Facily’s success and investigate why social commerce is becoming increasingly popular in Brazil.
Overview of Facility
Founded in 2016, Facily is a Brazil-based social commerce marketplace allowing users to list their products for sale, interact with their customers, and market them through social media networks. The company has grown to become one of the largest e-commerce sites in Brazil, with more than 20 million monthly visitors, and it recently closed a round of funding which valued the company at $850 million dollars.
The Facility has developed an innovative platform to facilitate online transactions between buyers and sellers. The company offers buyers multiple payment options such as PayPal, credit/debit cards, and bank transfers; while also providing high levels of customer service on each sale. Moreover, Facily’s platform enables a low-cost transaction structure for creators to easily list and market their products via the marketplace.
One of the primary drivers for this success was Facily’s emphasis on tapping into the large Brazilian population who are not only active and prolific consumers but are also increasingly turning to social media networks such as Facebook, Twitter, YouTube, and Instagram for product reviews and recommendations from peers before making purchase decisions. As a result, Facily was well positioned to take advantage of this trend by enabling users to search and explore products directly from within its app while also providing additional functionality, such as in-app messaging between buyers and sellers so that customers could more quickly connect with vendors online before proceeding with any purchase decisions. Additionally, Facily’s platform is mobile-friendly, so transactions can be completed at any time from anywhere within Brazil.
Thanks to these advantages of its platform, which have made it easier than ever before for Brazilian consumers to shop online more conveniently—Facily managed to double its year-on-year revenue growth rate in 2020 despite a sluggish economic landscape due to the COVID-19 pandemic—and garnered a significant investor interest as it closed a funding round valuing the company at 850M USD in 2021 confirming that social commerce platforms are clearly here to stay in Brazil.
Reasons for the Success of the Facility
In recent years, social commerce has grown hugely popular in Brazil as more online shoppers turn to platforms like Facily to purchase goods and services. The Facility, a Brazilian social commerce marketplace, is one of the most successful platforms in this space, having quietly raised $366 million in less than a year and now is valued at $850 million. So why is social commerce growing so rapidly in Brazil?
A key reason for the success of Facily is its focus on providing an intuitive customer experience – its platform emphasizes convenience, speed, and simplicity when making payments. Customers can access the platform both through their desktop or mobile app for all their shopping needs; payment options also include mobile wallets and cryptocurrency, as well as traditional credit and debit cards. By offering these different payment options, Facily opens up opportunities for customers who may not have easy access to banking services.
The Facility also has excellent customer service, which often exceeds customer expectations, which contributed vastly to its success. The platform connects customers directly with trusted suppliers making the entire shopping experience more reliable and trustworthy; suppliers are carefully vetted before they are allowed onto the platform, allowing customers to be sure that they are buying genuine products from legitimate sellers. This added security gives users peace of mind when engaging in transactions on Facily’s platform – an invaluable quality that sets them apart from competitors in this market space.
The success of Facility serves as a testament to the emergence of social commerce as a major force in Brazil’s economy over the past few years – it stands out for its convenient customer experience, secure transactions, and reliable customer support – all core qualities that borrowers prioritize when purchasing goods or services online.
Conclusion
In conclusion, social commerce is growing rapidly in Brazil due to increased consumer demand, improved technology infrastructure, the ability for businesses to target customers more accurately and effectively, and access to new funding sources. Younger demographics and the high penetration of mobile phones and digital devices are also driving the market. These factors are leading to a surge in the popularity of digital platforms like Facily in Brazil, giving consumers more choices in how they engage with businesses online.
With the influx of capital it has attracted since its launch, Facily has established itself as one of the most significant players in this space, demonstrating the potential for success with social commerce.
