What are the secrets to going from a novice to a big seller in the emerging markets?

The 10-month mandatory quarantine in 2020 has made offline retail in Brazil increasingly difficult, while online retail business, on the contrary, is booming. In less than a year since Shopee entered Brazil, its APP monthly active users have surpassed Amazon. Brazil, a hotbed of e-commerce, is being pursued by a large number of cross-border people.

The epidemic boosts Brazil’s e-commerce market

According to eMarketer data, e-commerce sales in Latin America reached US$84.95 billion in 2020, and this figure is expected to exceed US$100 billion by 2022. It seems that the online demand of the Brazilian market needs to be met urgently.

When the Brazilian consumer goods market with huge demand meets China's high-quality and low-priced products, this attraction is undoubtedly fatal. However, for Chinese cross-border sellers, the Brazilian market is an extremely tempting and difficult cake to chew.

The reason why the Brazilian market is difficult to crack is mainly because cross-border sellers will face two major difficulties when entering the Brazilian market: one is how to get the money back, and the other is how to ship the goods.

In terms of cross-border financial collection and payment in Latin America, leading cross-border financial companies in Latin America, represented by Ebanx, proposed many practical electronic collection solutions as early as 2014, helping cross-border platform giants such as AliExpress, Wish, Shopee, and Shein to successfully solve the problem of how to collect money.

But for Chinese sellers and platforms, it is not so easy to ship goods. The main obstacles here are Brazil’s high tax system and complex import commodity licensing and certification regulatory system .

Does handling Brazil’s cross-border logistics mean owning Brazil’s cross-border market?

As Wish, Aliexpress, Amazon and other platforms have opened independent national sites in Brazil and recruited Chinese investors, more and more packages are entering Brazil through postal channels. Brazil's tax system has also been constantly evolving, and the current situation it faces is also complicated.

In light of a series of factors, including the fact that international express shipments cannot enjoy the preferential treatment of USD 50 duty-free entry, the particularly long transit time for shipments entering Brazil through China Post’s surface mail or other countries’ surface mail channels, and the government’s call for the privatization of Correios, Correios announced that it would impose an international postal handling fee of BRL15/ticket on international postal parcels starting from August 27, 2018.

As the saying goes, one stone stirs up a thousand ripples. At that time, all cross-border e-commerce platforms and third-party sellers were resistant to Brazil's cross-border e-commerce business. Independent sites that had just started to develop the Brazilian market stopped advertising in Brazil, and third-party sellers on Wish and AliExpress also closed shipments to Brazil.

At the same time, consumers in Brazil have also expressed dissatisfaction with the Brazilian Post's operations. There have been constant protests online. Surrounding industries that have developed along with Brazil's cross-border e-commerce are also paying attention to Brazilian logistics, and sellers are worried again.

Based on complying with Brazilian laws and policies, paying the international postal handling fee of the Brazilian Post, and meeting the tax exemption for orders under US$50, creating a cross-border logistics product that can deliver 95% of packages within 30 days has become the common appeal and desire of cross-border companies. At that time, a cross-border industry leader also said: Whoever can handle Brazilian cross-border logistics will own the Brazilian cross-border market.

Anjunba Post MINI parcel becomes life-saving straw for Brazilian logistics

In June 2019, Ebanx invited Anjun Logistics to jointly build a cross-border direct mail line from China to Brazil. Since the official launch of Anjun Logistics' "Brazil Mail Line", it has provided a fast and efficient logistics channel for cross-border C2C logistics from China to Brazil, and has led to a substantial increase in orders from domestic platforms and independent stations in China to Brazil.

However, since the epidemic began to spread in Brazil in March 2020, the purchasing power of ordinary Brazilians has been declining, and they have become more sensitive to product prices. Reducing logistics and transportation costs has become the focus of competition between major platforms and sellers.

The Brazil Post MINI parcel launched by Anjun Logistics is undoubtedly a lifesaver for Brazilian logistics. It is mainly aimed at parcels under 300 grams, especially those under 150 grams. It is suitable for beauty products, mobile phone peripherals, accessories, small household tools, summer clothing and small toys, etc., solving the urgent problem of high logistics transportation costs in Brazil.

In addition, the timeliness of the Pakistan Post MINI parcel is also very strong and the customs clearance rate is much higher than the Standard parcel. Sellers who are interested can pay special attention to it.

Brazil

logistics

E-commerce