Five years ago when cross-border e-commerce was just beginning to emerge, Brazil was like a dark horse on the market, which was eye-catching. It has a population of 210 million. More than 60% use the Internet, and over 50% use smart phones to access the Internet. The development of the Internet also promotes the growth of e-commerce in Brazil.

Today, online shopping in Brazil only accounts for 4% of retail sales. The e-commerce market has great potential. According to market research firm Ebit, Brazilian e-commerce is expected to reach approximately 500 billion reais ($15.36 billion) this year, 12% higher than 2016.

As the largest e-commerce platform in Latin America, the Mercado Libre platform holds more than 50% of the market in Brazil. Other cross-border shopping platforms such as AliExpress, eBay, and wish all have a place in Brazil, and Amazon Brazil has also opened up the market for electronic products.

With the development of local e-commerce platforms and cross-border e-commerce platforms, the shopping methods in Brazil are quietly changing. In the past, Brazil's major shopping malls were always crowded with crowds. Today, there has been a noticeable decline in store turnover. 22% of Internet users have the habit of buying things through foreign websites. Their main reason for choosing Haitao is price; and they can buy goods that do not enter the Brazilian market.
In the past five years, Brazil’s attitude toward Chinese goods has improved significantly, and the quality of the goods purchased on cross-border platforms has exceeded the quality of accidents. It is generally believed that prices are more advantageous and design is also more modern. And the Brazilian market is more familiar with Chinese brands and regards China as a world-class power.

Today, the markets of major cross-border platforms are also quietly changing. For example, with AliExpress in 2016, the Brazilian market ranked in the top three. However, after 2016, the Brazilian market has retired from the top five, and many cross-border sellers have also closed the Brazilian market. This is why? The main reason is reflected in the following aspects:

1. Brazilian customs clearance is very difficult and the inspection rate is high
The 30% of big bags and courier sent to Brazil were cleared on the customs clearance. Even if the customer did not see him, they were returned to China. The reasons may be varied, the information is incomplete, the certificate is missing, the tax number is not, or more than the individual's purchase quantity. In addition, there are many anti-dumping products in Brazil that are restricted from entering the country.
Brazilian customs regulations:
1) For all parcels sent to Brazil by express delivery, the local VAT number of the recipient in Brazil must be included in the waybill (Special Delivery Instructions in Column 9) and the commercial invoice.
The local VAT numbers are divided into two types: CNPJ) company - XX.XXX.XXX/XXXX-XX) and CPF (person - XXX.XXX.XXX/XX).
If the shipment is not issued with the VAT number on the invoice and waybill as stated above, all items sent to local private goods must not exceed 3PCS. Otherwise, the customs will refuse the customs clearance and arrange the shipment directly back to the place of delivery. There will be no notice before the item) and all shipping charges will be borne by the consignor.
2) Brazilian customs conduct 100% inspection of imported parcels.

2. Brazil's tariff is extremely high
The parcels sent to Brazil, regardless of value and weight, are subject to customs duties.
In order to protect its industrial production, Brazil adopted taxation protection policies for goods imported from abroad. Any product that has a manufacturing company in Brazil will be subject to high taxes.
Every Brazilian person's annual overseas shopping allowance is only 50 US dollars, so almost all Brazilian consumers need to pay tariffs to buy products. A customer stated that they went through UPS and the tariff was basically between 100% and 200% of the value of the goods + delivery fee. Some of them said that they bought 60USD but paid 120USD.
Some sellers believe that as long as the declared value is lowered, it will be safe. However, in addition to checking the declared value of the seller, the Brazilian Customs will consider whether the seller is underreporting in accordance with the average selling price of the product in the country. If they feel that the value of the goods does not match, the buyer is required to provide evidence of overseas consumption, provide a website, check their correctness, and pay taxes according to the prices on the website before they can take away the purchased goods.

3, the logistics of Brazil is particularly slow
The biggest problem is that the time for shipping from domestic shipments is too long. Usually it takes 30 days to 60 days, and some places even need 90 days. The clothes that the customer bought in the summer had already been over there. It was over the season. Long logistics time brings a bad experience to shopping.

4, the return rate is high
To sum up all the above reasons: the customs was carded and returned directly; the tariff was too high and the customer abandoned the goods; the time was too long and the customer did not want it, resulting in a very high return rate. There are many orders in the Brazilian market, but more than 30% of the return rate is even higher. This undoubtedly adds extra costs to cross-border e-commerce companies, making merchants love and hate the Brazilian market.

??Shanghai Jingchuan Supply Chain Management is a comprehensive supply chain management company focused on building China to Brazil. It has been engaged in Brazil's import and export business for many years and is familiar with Brazil's taxation, laws and regulations, and has strong customs clearance capabilities. It helps customers reduce the problems caused by customs clearance. Return problem. At present, there are more than 5,000 flats in Sao Paulo, Brazil, and local shipments are made through Brazilian overseas warehouses, which greatly shortens the delivery time, avoids customers from paying high tariffs, reduces the return rate, and increases the customer’s trust and experience, thus increasing the Repeat purchase rate. In addition, the Shanghai Overseas Warehouse in Shanghai Luanchuan provides value-added services such as returning, taking pictures, and changing labels, providing strong support for the vast number of cross-border e-commerce companies to explore the Brazilian market.
As the largest country in South America, Brazil is another big blue ocean market for cross-border electricity suppliers. Are you ready? It is time to advance into the Brazilian market!