Brazil's tax reform takes effect, AliExpress releases a number of welfare measures to ensure merchants' competitiveness

As Brazil's new tax reform policy comes into effect , AliExpress, one of China's "Four Little Dragons Going Global" e-commerce platforms, has announced a number of welfare measures to ensure that merchants' business in the Brazilian market is not affected.

Brazil's latest tax reform policy will take effect on August 1, 2024 local time . At that time , a 20% tariff will be imposed on parcels imported into Brazil with a value of no more than US$50, while cross-border parcels of US$50 or more will enjoy a tariff reduction of US$20.

With the tightening of the "small exemption" policy, in order to ensure the competitiveness of Chinese merchants in the Brazilian market and stabilize the business scale of merchants, AliExpress Brazil has urgently launched a number of subsidies and favorable policies:

1. The platform subsidizes Brazil Choice products with a 20 RMB discount for purchases over 200 RMB, supports cross-store discounts, and free shipping for purchases over 99 RMB ;

2. In the Brazilian Bundle deals channel, the platform will offer a 20 RMB discount for purchases of 100 Brazilian reals or more ;

3. Starting from August 1, there will be an additional Choice Day promotion , with a maximum discount of 40% ;

4. In the near future, we will continue to release a series of measures to help businesses reduce costs. Please pay attention to platform notifications.

(AliExpress Brazil displays eye-catching subsidies on the first screen to guide consumers to buy more and save more)

On the other hand, under the new tax reform policy, high-order products with a price of more than 50 US dollars will enjoy a tariff reduction of 20 US dollars, ushering in a new round of explosive opportunities. AliExpress platform recommends that merchants can seize this business opportunity to prepare targeted goods : products with a price range of 50-150 US dollars, such as photography and video, mobile phones, computer components, audio and video equipment , computer peripherals and other technological products , as well as outdoor cycling, auto parts , beauty and health and other categories , will have a huge price advantage after the tax reform .

For this batch of high-order merchandise, AliExpress will also increase its investment in local traffic in Brazil and provide 10 billion yuan in subsidies to further magnify its advantages and help merchants seize opportunities for explosive growth.

"The number of Brazilian visitors to our store has indeed increased a lot in the past few days," said the head of a merchant who mainly sells portable outdoor speakers with an average price of around US$120. "This tax reform is an opportunity for us. I think consumers are also waiting and watching during this transition period. Once the policy is smoothly implemented, we believe that there will be an increase in sales."

In addition, AliExpress also recommends that merchants post relevant notices in their stores to inform consumers that exclusive promotions and discounts will be provided to offset the new tax burden and reduce consumer concerns.

This year, AliExpress has been developing rapidly in Brazil. According to data from the third-party agency Conversion , AliExpress became the most visited cross-border e-commerce platform in Brazil in June, and also won cooperation with Brazilian local retail giant Magalu. The two sides exchanged sales channels and products , adding another huge traffic channel for Chinese cross-border merchants .

Brazil tax reform

AliExpress