How the direct selling market reinvented itself through social commerce
It has always been common to come across resellers of direct selling brands like Natura, Boticário, and Avon on the streets, at work, and even within families. Since 2020, with the onset of the COVID-19 pandemic, it's become even more common to see people we know selling products via Instagram and WhatsApp.
And for good reason: at the end of 2019, the penetration of online sales in Brazilian retail was 5%. By the end of 2021, that number had reached 12%, according to research by MCC-Enet. Over 290,000 new online stores emerged during the pandemic, not including individuals selling products or services through Instagram, WhatsApp, and other social platforms, what we now call social commerce.
Resellers were no exception. Since 2020, they’ve had to reinvent themselves, learning how to sell through Instagram and WhatsApp. A large portion of sales once made at workplaces, door-to-door, or in physical stores has shifted to social commerce, and it’s likely this shift is permanent.
Brazil is undoubtedly one of the global powerhouses in the direct selling market. According to the World Federation of Direct Selling Associations (WFDSA), Brazil leads the Latin American market with over USD $7 billion in revenue in 2021, ranking seventh globally in total sales volume.
According to the Brazilian Association of Direct Selling Companies (ABEVD), there are 4 million formally registered resellers in Brazil, and the actual number may be even higher when accounting for informal sellers.
The Shifts
In Brazil, there are two predominant types of D2C (Direct-to-Consumer) brands:
Those that sell through resellers directly to the end consumer
Digitally native brands (DNVBs) that sell online via social media and their own e-commerce platforms
Both are heavily investing in their digital presence, from branding and community building to influencer partnerships and using social networks and owned e-commerce as sales channels.
The consequence? Selling online is becoming increasingly expensive. Many D2C brands are seeing their Customer Acquisition Cost (CAC) rise due to:
More expensive ads: With more brands and individuals advertising on platforms like Google, Facebook, Instagram, and YouTube, the cost of acquiring a single click keeps going up.
Influencer exclusivity: Some large companies now pay influencers simply to not work with other brands. Even without posting content or collaborating, influencers are being compensated to remain exclusive—making influencer marketing inaccessible for smaller brands.
Customer experience: D2C brands thrive by offering personalized, seamless buying experiences. This includes clear communication throughout the buying journey, standout logistics, and unboxing experiences that encourage repeat purchases. Scaling this requires investment in dedicated teams, technology, and robust data analysis.
To gain significant market share, D2C brands must embrace omnichannel strategies, selling across both physical and digital spaces.
The biggest challenge today is replicating their customer experience across these multiple channels while reducing CAC. That’s where multi-brand resellers using social commerce might hold the answer.
Marcela Quiroga, direct sales expert, former Natura executive, and co-founder of Sync, believes there’s enormous potential in social commerce resellers. They live alongside their customers and understand their needs intimately.
She explains:
"A reseller's recommendation is highly effective because she knows the client’s lifestyle. Her influence in the final decision is a major opportunity for D2C brands that value customer experience and loyalty. It offers a more stable CAC and leverages the core strength of direct sales: deep market penetration."
For the Resellers
A study by CVA Solutions and ABEVD shows that most resellers are multi-brand sellers, typically offering products from three different companies. This has long been the norm, but it’s becoming more pronounced.
Why? Resellers aim to increase average order value by offering a curated mix of products across brands to each client.
Key changes for resellers include:
Resellers now "own" the customer: Consumers aren't loyal to brands—they're loyal to their reseller. They trust her to guide, educate, answer questions, and recommend the right product.
Resellers are now entrepreneurs: It’s no longer “Anna Clara, Avon/Eudora/Jequiti rep.” Now it’s “Anna Clara Cosmetics.” She handles everything from customer acquisition to sales and service.
Tech-savvy sellers: Instead of relying on each brand’s digital catalog, many resellers now use multi-brand tools to create their own websites. This centralizes products from all brands they carry, creating a seamless buying experience for their customers.
Relationship-based selling: Still the heart of direct selling, but now happening via Instagram (stories, DMs, posts) and WhatsApp instead of door-to-door.
This intersection—between tech tools and relationship-driven sales—is where social commerce thrives. It’s also where the biggest future opportunity lies: increased conversion rates.
Traditional e-commerce doesn’t replicate the warmth and trust of relationship-based selling. Full automation can actually hurt conversion.
Brazil’s average e-commerce conversion rate is just 1.65%, according to Experian Hitwise. But according to Sync, when relationship selling is integrated into the digital journey, conversion rates can reach up to 17%.
Why? The sale doesn’t end in a form—it ends in a WhatsApp chat, where the customer confirms and pays via PIX. It’s frictionless, conversational, and feels more personal and secure.
Trends to Watch
Online sales to hit 25% penetration in Brazil: According to Ethan Choi, partner at global VC firm Accel, Latin America could see e-commerce penetration reach 25% in the next decade. Brazil, currently at 11%, is expected to double.
Explosion of new D2C brands: The D2C model continues to rise. We’ll see more DNVBs launch, leading to fierce competition and innovation.
Creator Economy: Influencers are becoming entrepreneurs—launching their own products and brands. From Anitta and CIMED’s intimate perfume to Gusttavo Lima and Boca Rosa, creators are moving beyond sponsorships into ownership.
Social commerce as a growth lever: To reduce CAC and scale, D2C brands are turning to social commerce resellers who already have trust, visibility, and sales momentum. The more these resellers talk about, demo, and explain the products on social platforms, the more these brands become a part of everyday life, not just another post online.
Originally published at Exame.
Read the full article here: https://exame.com/bussola/como-o-mercado-de-venda-direta-se-reinventou-com-o-social-commerce
