Country Manager Brazil, Nuvemshop
Describe Nuvemshop
Nuvemshop is the leading e-commerce platform in Latin America and is committed to empowering and inspiring all entrepreneurs to turn their dreams into stories that transcend. With over 120,000 stores, it integrates products, payments, shipping, and offers an ecosystem with more than 1,000 partners. The company has over 1,000 employees and offices in Brazil, Mexico, Argentina, and Colombia.
Could you discuss the current state of the Brazilian electronic market? And what is its impact in the local economy?
The Brazilian electronic market has been growing steadily over the past few years. This growth can be attributed to several factors, including an increase in consumer demand for electronics and advancements in technology. The impact of this growth on the local economy has been significant, as one of the largest employers in Brazil and contributed significantly to the country's GDP.
Do you believe that the future of small companies is digital commerce over physical sellings? What are the factors that might influence digital development?
E-commerce continues to grow steadily in Brazil and, as of the third quarter of 2023, it already accounts for 15% of total retail, according to a study by the FGV Ibre institute. This is mainly due to the ease of management and lower operational costs compared to physical stores. During the pandemic, businesses had to rapidly digitize, contributing to the rapid development of the market, which continues to grow even after the health crisis. For example, in just the third quarter of 2023, small and medium-sized e-commerce businesses achieved a 20% higher revenue than the previous year, according to Nuvemshop's survey of its merchant base in Brazil.
In the first half of 2023, small and medium-sized online businesses sold to over 4 million consumers across Brazil, marking a growth of approximately 46% compared to the same period in the previous year. Of this total, just over half were first-time online buyers. During this same first half, revenue surpassed R$1.5 billion.
These small and medium-sized entrepreneurs are gaining a foothold in the online retail space by specializing their sales for specific audiences, investing in social media promotion (becoming viral and influencers for their own businesses), and enhancing the shopping experience (quick customer service, unboxing, coupons), among other strategies. Therefore, the trend indicates greater penetration of e-commerce alongside physical retail, which will not cease to exist.
What makes Nuvemshop stand out against their competition?
Nuvemshop's mission is to reduce the barriers of entrepreneurship and provide robust technology with integrations that make an entrepreneur's e-commerce journey easier, whether they are starting from scratch or are already established and looking to scale their business.
We are becoming the obvious option for both small, medium and large merchants through six aspects: (i) intuitivity, (ii) versatility, (iii) economies of scale, (iv) higher conversion, (v) services, and (vi) omnichannel.
(i) Intuitivity. Nuvemshop has the most intuitive platform on the market, with total autonomy, without depending on third parties to set up, manage and boost merchants' business.
(ii) Versatility. Nuvemshop also has a native platform with all the essential features merchants need and the largest ecosystem focused on Brazil with more than 500 applications for payment, logistics, marketing, management and sales channels.
(iii) Economies of scale. Payment methods and logistics are also critical for an online business, which are also offered by Nuvemshop through Nuvem Pago and Nuvem Envio solutions. With them, merchants can achieve lower payment and shipping costs, as well as simpler management and better integrated service.
(iv) Higher conversion. Nuvem Pay can increase online store's checkout conversion by +7% and take advantage of the more than 3 million consumers who already use Nuvemshop exclusively for retailers.
(v) Services. We are proud to say that we have the best service, via WhatsApp, telephone and email, and, exclusive to Nuvemshop Next, a team of experts such as migration project managers, day-to-day account managers, technical specialists and preferential support. Also, through E-commerce na Prática, an e-commerce academy and community that is part of the Nuvemshop group, entrepreneurs have access to specialized classes covering everything related to online sales.
(vi) Omnichannel. The platform is connected with social commerce (Facebook, Instagram, Whatsapp, Tiktok) and marketplaces. And evolving into larger businesses to have full omnichannel (Cloud POS integrated with the virtual store, multi-CD, wholesale) and sell millions per month through the virtual and physical stores.
In that sense, how does the platform maintain a relationship with their clients? Could you give us some examples of that?
Customer service is one of the most important aspects for Nuvemshop, and through specialized departments, we strive to provide the best service at all stages of the business so that the customer's experience is positive from the first contact to any necessary technical support.
We are proud to say that we have the best service, via WhatsApp, telephone and email, and, exclusive to Nuvemshop Next, a team of experts such as (i) migration project managers, (ii) day-to-day account managers, (iii) technical specialists and (iv) preferential support.
Nuvemshop Next is Nuvemshop’s ecommerce solution dedicated to business that has a GMV of R$100,000 or more.
(i) Assisted migration to have the support of a team that maps the merchant's needs and monitors the platform migration of e-commerces or first launches in a consultative manner.
(ii) Account manager to offer recommendations, tools and help with best practices to increase online sales, with personalized and recurring assistance.
(iii) Technical specialists, also called Professional Services, to assist in the use of APIs and customizations for merchants, helping to define the problem, design the solution and find the best technological partner for implementation.
(iv) Preferential support via telephone, email, and WhatsApp, available in a matter of minutes every day to answer questions or resolve problems, with an "incredible" satisfaction rate over 95%.
Another standout way Nuvemshop builds relationships is through its commitment to education. Through E-commerce na Prática, an e-commerce community part of the Nuvemshop group, entrepreneurs have access to specialized classes covering everything related to online sales.
From a global perspective, and looking into the future, are there any projections of the company expanding itself outside of Latin America?
Nuvemshop's current focus is on continuously improving the solutions and services it offers in the countries where it operates, including Brazil, Argentina, Mexico, and Colombia.
On the other hand, at a local scale, what are the challenges that the company faces in order to solidify itself in new countries within Latin America?
Expanding into new countries within Latin America can present several challenges. Each country in Latin America has its own unique culture, customs, and traditions. It is important to understand these differences and adapt our ideas and plannings. Besides, many countries in Latin America have experienced economic instability in recent years, which can impact the business. We must be prepared to navigate these challenges and adjust strategies accordingly.
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