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Navigating the Complex Brazilian Market as an E-Retailer

The rapidly-growing Brazilian market presents a huge sales opportunity for U.S. e-retailers.  Merchants who are looking to expand into the Brazilian market know there are specific challenges when dealing with commerce with this country.  Understanding the complex duties and taxes levied by this country will enable an online retailer to ship merchandise there.

The Brazilian Market

Companies that would like to conduct business with Brazil realize the enormous growth potential for their business.   With over 190 million people, Brazil is the 7th largest economy in the world. As a result, a strong middle class is emerging within the country, with money to spend online.

A surge in internet use over the last five years has created a savvy online culture, with an estimated 88 million online shoppers.   Social media is becoming very popular in Brazil as well.

According to government statistics, in 2015, 92% of internet users were connected to social networks like Facebook and Instagram.  Indications show there is most likely a strong interest in shopping via social media in Brazil.

Challenges in Brazil

While Brazil’s borders have opened somewhat since the 1990’s, there are still many challenges that merchants face when trying to export to the country.  Many companies have not been able to offer products to Brazil at all, due to its strict and often-changing trade and import regulations.

With some of the highest import duties and taxes in the world, at almost 100% of merchandise value, understanding the collection of duties is an important piece of the e-commerce market in Brazil.   Another challenge is the Tax ID (CPF), which is required for customs clearance, yet most merchants do not capture.

The actual delivery of merchandise is also an issue.  The lack of cost effective and reliable delivery within the country accounts for many lost packages.  In addition, an estimated 30% of packages are abandoned due to lack of information regarding duties and taxes.

Secure Import Solution

With so many regulations, breaking into the market in Brazil can seem somewhat intimidating for retailers.  Sky Postal has developed a solution to help retailers navigate the complex duties system to eliminate product abandonment and delayed transit times in Brazil.

This Secure Import solution communicates with the consumer directly by providing them with a secure portal to pay for all duties and taxes, before the merchandise even leaves the United States. Secure Import notifies customers when their package is ready to be shipped from the U.S. via email, and they can pay for their duties and taxes using Boleto Bancario, the safest payment method in Brazil.

Shoppers can also estimate duties during the shopping process using our proprietary duties calculator, to make calculating their final cost easier and accurate. Customers no longer need to visit their local post office or delivery company to make a payment because the Secure Import system allows customers to have packages delivered right to their home.

The process of conducting business in Brazil is far less complicated when using Secure Import.  We have extensive knowledge of the local environment to ensure your business is meeting all Brazilian requirements to get your merchandise delivered correctly and on time.

To learn more about how you can expand your online business in Brazil, while providing an easy transaction process for your customers, visit www.secureimport.com.br.