The Latin American market also has strong demand for Chinese goods. Brazil is one of the four BRIC countries. It is a country with a large population, the largest economic scale in South America, high Internet and smartphone coverage, and the second highest e-commerce growth rate in the world. In China, it has become a big gold mine for cross-border e-commerce.
In 2012, China replaced the United States for the first time and became Brazil’s largest importer. In 2014, Brazil’s national e-commerce GMV reached 35 billion reais, with a growth rate of 21%. 60% of Brazilian online shoppers are under 35 years old. Rio, Sao Paulo and other places have the most densely populated and very young populations. Their demand preferences tend to be products such as clothing, cosmetics, mobile phones, electrical appliances, furniture, etc., especially for mobile phones and tablet computers. big. According to a PayPal report, Brazil is the country with the fastest growing demand for China’s online export goods, with an increase of nearly 7 times in the past five years, reaching US$12 billion.
Brazil is not a member of the WTO. Its customs and tax systems are linked together. Taxes are collected and managed at different levels. There are many types of quite high taxes. There are at least 7 different types of business taxes, and they are paid cumulatively. There are three types most relevant to cross-border e-commerce. One is that tariffs are federal taxes. For general consumer goods, import tariffs II can range from 20% to 30%, and industrial product taxes IPI are about 10%. The other is the circulation of goods and services of state governments. The tax ICMS, similar to the value-added tax, is about 17%, slightly different in each state; the third is the customs clearance tax PIS/CONFNIS, which is also a federal tax, about 2% to 10%.”
All express delivery For packages arriving in Brazil, the local VAT number of the recipient in Brazil must be filled in on the waybill and commercial invoice. The Brazilian local tax number is divided into CNPJ legal person and CPF private person, which is a taxpayer’s certificate. Regulations require that online shopping parcels are 100% taxable. However, items that are personal items and have a value of less than 50 US dollars are exempted. Brazil Post has a simple tax collection system. In addition to various prohibited items, there are currently GRU/VCP in Sao Paulo, RIO in Rio, and others. Four airports including Curitiba CWB accept express customs clearance. The postal service requires CN22/CN23 customs documents, and commercial ones require CP27.
In 2015, no matter what kind of goods, IPI and ICMS must be submitted. It is no longer tax-free, and generally charges 5 to 10 US dollars for parcels. This has hit cross-border e-commerce hard and caused large-scale parcel backlog delays. For goods worth more than 3,000 US dollars, a 60% import tax is levied, and buyers need to pay in advance. These taxes, otherwise the customs clearance of goods will be delayed. Generally speaking, taxes in South American countries are very high. Depending on the product, the taxes may be tens or even hundreds of percent because of issues such as customs clearance, tax payment, and logistics. , many sellers gave up the South American market in tears.
Latin America has a vast territory, backward infrastructure, and lack of consistent transportation. Foreign merchants may have to contact countless logistics companies, which is complicated and time-consuming, even if they are familiar with this area. It is still difficult to cooperate with local logistics providers in the market to provide fast delivery services. The emerging platform Linio (Spanish-speaking Argentina, Chile, etc.) is vigorously recruiting investment. Linio was founded in 2012 and now has more than 2,000 employees. The platform’s logistics solutions are adopted. Commercial Express.
Risk factors such as corruption in the public sector, political instability, and currency devaluation are also important to fully understand when entering this market. Due to their geographical location and common language and culture, Chile, Argentina, and Uruguay have great differences. Cross-border e-commerce has great potential, and buyers will also search for products from neighboring countries.
MercadoLivre is the largest C2C platform in Brazil. It was established in Uruguay in 1999 and is equivalent to China’s Taobao. The network has gathered more than 60,000 sellers and 160 million registered users, equivalent to 50% of Internet users in Latin America. Its business scope has covered 19 Latin American countries including Brazil, Argentina, Mexico, Chile, and Colombia. The annual compound growth rate in the past three years has been More than 20%, MercadoPago payment tools are also provided. Making good use of this platform will help you understand various South American price indexes, consumer trends, payment habits and other market information.
If you do a good job in Brazil’s e-commerce, you can further expand. The seven Portuguese-speaking countries around the world, such as Zalando, Euronics, IBS, etc., are all online shopping platforms commonly used by Portuguese consumers. Social media is very popular in Latin America and is an important channel for online marketing. The blue ocean of cross-border e-commerce in Latin America must be an important place for sellers to go overseas. The Latin American market is waiting to explode before dawn.