What could be better than starting out on South America’s largest eCommerce market? breaking in at a time when it is expanding rapidly!
Brazil is the richest, biggest, and most populated country in South America, making it a valuable market for online merchants wishing to grow, particularly on Amazon Brazil.
This guide is for you if you want to start selling on the Amazon Brazil marketplace. We’ll discuss the state of Brazilian eCommerce, what Brazilians buy, and how fierce the rivalry is. Like its namesake in Brazil, the Amazon can be a true jungle.
Brazilian eCommerce: A Profitable Opportunity
There is no denying that Brazilian eCommerce is at a pivotal moment right now. On a somber note, scientists attribute the high increase in interest in internet shopping—which has increased by 65.7%—to the COVID pandemic. However, the recovery has prompted thousands of small- and medium-sized Brazilian enterprises to go online, securing the market’s future.
Brazilian eCommerce has more room to develop given its 49.4% user penetration and the popularity of online buying among younger consumers. Brazil is the sixth most populous country in the world. When you consider that Amazon Brazil has an average revenue per user (ARPU) of $201.75, you can see why expanding there would be a good decision.
The Brazilian eCommerce market does have significant limitations, especially import duties. Taxes on imported items can be as high as 60%, not including customs fees, in an effort to boost domestic sales. It is advised to use one of Amazon Brazil’s FBA fulfillment centers or another outside Brazilian borders third-party fulfillment company for that reason alone.
Brazil’s Online Shopping Patterns
Brazilian online purchasing habits are distinctive and follow their own trends, like with other civilizations. Understanding these variations can help you prepare for them and incorporate them into your sales approach when trying to break into a global market.
Brazilians really prefer utilizing smartphones to complete eCommerce transactions, with mobile eCommerce making up over a third of all transactions. The option to buy online and pick up in-store, according to 48% of those polled, is the most crucial component for mobile eCommerce. As an Amazon seller in Brazil, you won’t have that possibility, but you’ll still need to find a way to compete with online merchants that do.
Credit cards are the most common means of payment, however some Brazilians prefer Boleto Bancário, a particular way of bank payments that is exclusive to Brazil.
An evaluation by Statista finds that the top product categories are generally consistent with other markets. The top three categories by sales volume share percentage are:
- Clothing and accessories (21 percent )
- Entertainment (14.9%)
- fragrance, health, and beauty (12.5 percent )
Overall, new sellers should be greatly encouraged by Brazilian online shoppers, especially in light of Amazon’s support for credit card transactions and regional fulfillment facilities.
Brazilian eCommerce Powerhouses: Your Rivals
Amazon doesn’t even make it into the top three, despite the fact that overseas retailers will be in direct competition with regional eCommerce businesses. See which marketing strategies are successful and where there is space for development by looking at the largest Brazilian eCommerce platforms (based on the findings of Ecommerce Guide).
- Online store Mercado Livre, founded in Argentina, has been doing business in Brazil since 1999. It is well-liked throughout South America and offers products in all categories, making it the region’s answer to Amazon.
- Americanas is the largest eCommerce site founded from Brazil and sells across all categories. It is an online extension of the brick-and-mortar business Lojas Americanas.
- OLX is a Dutch marketplace with a similar global reach to Amazon; while it provides products across all categories, in Brazil it is especially well-liked for its electronics, tech, and computer products.
- You’ll be selling on Amazon Brazil, so it’s a good idea to look around and see what other sellers are doing, particularly with regard to pricing and customer service.
- One of the most well-liked retail companies in Brazil is Magazine Luiza, despite the fact that their brick-and-mortar stores are more popular than their eCommerce offerings.
- Casas Bahia is another well-known brick-and-mortar juggernaut that complements its in-store sales with online ones. It is notably known for its furniture and home items.
- Netshoes is the top brand in sports retail in Brazil, offering not only sneakers but also sportswear, gear, and supplements.
- Submarino – An established online retailer with a large assortment of goods in many different categories in Brazil.
- Shoptime — Owned by the same organization as Submarino and a sister store, it offers a wide range of domestic and foreign brands.
- One of the more recent Brazilian eCommerce firms is Dafiti, which began as an online clothing store for men, women, and children but has since grown to include accessories, home goods, and beauty products.
The top retailers in Brazil are the best at understanding Brazilian consumers, so consult these sites for information and trends.
How to Begin on Amazon Brazil
You may use this knowledge to assess whether it makes sense to list your products in Brazil now that you have a general understanding of the Brazilian eCommerce market.
Account details for global business partners
The selling partner’s login and password are the same for both Brazil Seller Central and your own Seller Central. Simply choose Amazon.com.br from the Seller Central main menu to change between accounts. Make the following modifications after choosing your Amazon.com.br account:
Deposit options for global business partners
Selling partners from outside of Brazil are required to link their Amazon.com.br account to a bank account in the United States. Amazon will pay you for sales using wire transfers. Your seller account must specify a bank account for us to deposit funds before you can receive payments. We don’t transfer money to credit cards, savings accounts, or online payment processors like PayPal. Visit the help page Bank account information to find out how to add, modify, or remove a bank account.
Conditions for Value Conversion and Value Transfer
payments made to Amazon.com selling partners based outside of Brazil are made in US dollars to a bank account situated in the United States of America (USD). In Settings > Account Info > Deposit Methods, the partner must consent to the conversion and transfer of value terms and conditions. The terms of the contract will outline the procedures used for currency conversion as well as any fees levied by the service provider handling the transactions.
Addresses of overseas selling partners from Brazil
International selling partners’ registered business addresses on Amazon.com.br must be in China or the United States (mainland). Your Amazon.com.br account must have both a registered business address and a registered postal address. Go to Settings > Account Info > Business Address to view or modify your business address. Go to Settings > Account Info > Official Registered Address to view or modify your official registered address.
Recurring charges and referral fees
The monthly subscription fee is already applied to the original account, so the partner won’t be billed again. The referral (commission) fees levied by Amazon.com.br are distinct from those in other nations.
Shipping Products to Brazil
Fees and Taxes
When exporting goods from outside Brazil, there are two options for paying import taxes and fees: DDU (delivery duties unpaid) and DDP (delivery duties paid). In the DDU model, the customer is in control of covering any taxes and levies that may be applied when the ordered item is delivered to Brazil. In the DDP model, the carrier receives taxes and fees from the sales partner and transfers them to the Brazilian customs authorities. The consumer is not required to pay any additional costs in this situation.
According to the guidelines below, international shipments must adhere to the customs value of the package (which includes the product price plus the cost of shipping):
- DDU: for packages with a customs value of R$200 or less
- DDP: for shipments whose customs value exceeds R$200.00
These shipping guidelines were developed to provide customers with the greatest experience possible regarding the product’s travel time. Partner accounts may be suspended for violating the shipping regulations. Physical books are an exception to the above regulation and should always be supplied via the DDU method since they are exempt from import duties in Brazil.
Last mile postal fee
In order to pay costs for goods inspection, order release, and internal transportation, Correios (a Brazilian carrier) charges a fixed R$15.00 fee for foreign deliveries. Consumers are assessed this tax when the product is delivered to Brazilian soil. A shipping option free of this charge for the customer must be negotiated by the selling partner and its carrier. Deliveries that include a last-mile postal fee degrade the customer experience and may result in the account suspension of selling partners.
Required Tax ID (CPF) for foreign purchases
Orders delivered from outside Brazil to locations inside the nation must include the customer’s CPF (Brazilian tax ID) as well as his name and address. Since January 1st, 2020, the CPF must be included, according to Brazilian Customs. If this information is unavailable, the shipment may not be allowed into Brazil and will either be destroyed or sent back to its place of origin.
How do I get my CPF as a consumer?
Customers’ CPF is accessible in three ways:
- Manage Orders: Navigate to the Orders > Manage Orders option in Seller Central. Click the order number to get the details. Buyer CPF will have CPF available in the More Details section.
- Order Reports are located under Orders > Order Reports in Seller Central. Reports for fresh, unshipped, and archived orders are available. You can schedule recurring reports by choosing the frequency for generation and clicking on Schedule after selecting the date range and clicking Request. Select Download after selecting the necessary report from the list that was generated.
- Integration: The vendor has access to the customer’s CPF via an API. The ListOrders operation, node, of the Field Orders API must be used by the developer. The link Amazon Marketplace Web Service Documentation will take you to the relevant documentation.
Transit Period
For products delivered from outside of Brazil, the total transit time might range from 5 to more than 60 days, depending on the shipping method and the logistics provider of choice. This period of time accounts for the packaging process, internal transit in Brazil, international transit, processing by Brazilian customs, and transit inside the country of origin. It is advised that the sales partner begin business operations with a delivery time of 19–35 business days for products shipped from China and 20–28 business days for products shipped from the United States, and then adjust the shipping settings in accordance with the actual shipping time that is actually experienced.
Regulations from Brazil and Amazon policies
Selling partners are accountable for making sure that all products and offers adhere to any local, state, and federal laws as well as any policies set forth by Amazon. If necessary, the partner can use the Amazon Service Provider Network’s Explore Services option in Apps and Services.
Breaking the Language Barrier
It’s crucial to become proficient in the language if you plan to sell in a market that only speaks that language. Unless the seller distributes only through FBA, this can be a crucial need for any marketplace. Understanding the language makes it easier to conduct research on and comprehend regional client demands and desires. Of course, this is not necessary because Amazon offers services and technologies that still enable merchants to succeed in a market even if they lack language skills.
Conclusion
Selling on Amazon Brazil might provide Amazon business a fantastic boost. You have the chance to drastically enhance your earnings by gaining access to a sizable new audience.
However, selling globally isn’t always simple, and you’ll encounter a number of fresh difficulties as a result of global expansion. This is why we advise speaking with a specialist and getting personalized guidance in advance. You will be the best equipped and able to take advantage of every chance if you do it this way.
