Impact of Google’s Algorithm on E-Commerce: A Case Study in Brazil After the Update

Rodrigo Pinto · 2026-10-07

Before-and-after analysis

In 2023, Google rolled out a significant algorithm update aimed at improving the relevance of search results. Before the change, many Brazilian e-commerce businesses benefited from basic SEO strategies focused on high-volume keywords. After the update, the need for quality content and a stronger user experience became increasingly clear, leading many sites to reassess their approach.

Changes in organic and paid traffic

The immediate impact was noticeable. E-commerce businesses that didn’t adapt to Google’s new approach saw organic traffic drop by as much as 40%. In contrast, stores that adjusted their SEO strategies and invested in relevant, optimized content saw traffic increase by 20%. In paid ads, competition increased, driving cost per click (CPC) up by approximately 15% in saturated niches.

Effect on sales in the first quarter

During the first quarter after the update, stores that didn’t adapt saw an average 25% drop in sales. Those that implemented new SEO strategies and focused on targeted ads via Google Ads managed to keep sales steady, with growth of up to 10% compared to the same period the previous year. The performance gap highlights the importance of responding quickly to algorithm changes.

Comparison with competitors that didn’t adapt

Stores that didn’t adjust their SEO and digital marketing strategies faced significant challenges. While an adapted e-commerce business saw conversion rates rise from 3% to 5%, its competitors that stuck with their old approach lost customers and visibility. It’s important to note that adapting isn’t limited to SEO; making good use of paid ads and retargeting has become vital.

Recommendations to mitigate losses

1. Improve SEO: Focus on relevant content, long-tail keyword strategies, and mobile optimization.
2. Invest in Paid Ads: Consider diversifying your campaigns by using both Google Ads and social media to reach different audiences.
3. Competitor Analysis: Use tools like FreeSpy to monitor what’s working for successful competitors and adapt your strategies.
4. User Experience: Improve site navigation, increase page load speed, and ensure your design is responsive.
5. Ongoing Monitoring: Track performance metrics regularly and be ready to make quick adjustments when needed.

What was your experience with Google’s 2023 updates? Did you see significant changes in your traffic?