How is the Amazon Brazil market?
When talking about Brazil, many people naturally think of it as the kingdom of football. Brazil is a country in Latin America and South America. The Brazilian economy has been developing rapidly. It’s just that the overall economic situation in Latin America is not very good. However, Brazil is still the largest retail market in Latin America. This football kingdom is definitely a blue ocean market in the current cross-border e-commerce market.
1. Brazil has a population of 200 million, and 80% of the population has Internet access;
2. Brazil's online e-commerce retail market share accounts for only 5% of the total retail market;
Some people will say that this is too young; but because of this, sellers with vision can plan ahead; it has great growth potential at present;
What are the advantages and disadvantages of opening a Brazilian station?
Amazon Brazil Disadvantages:
1. Customs clearance
Brazil is one of the most difficult countries in the world to clear customs. All packages except small air parcels are often inspected, especially FedEx and DHL, which are almost always inspected, and the VAT registration number of the recipient is required.
Brazilian customs regulations stipulate that for all items sent to local individuals, the quantity of the same goods cannot exceed 3 PCS, otherwise the customs will refuse to clear the customs and directly arrange for the goods to be returned to the place of shipment (there will be no notice before the return), and all freight costs incurred will be borne by the shipper.
If the quantity of the same product exceeds 3 PCS, it can only be sent to companies, not individuals, and must be imported in a formal customs clearance mode. If the shipment needs formal customs clearance, the consignee must be registered with the local customs, but currently only the VCP and GRU ports in Sao Paulo in Brazil can handle formal customs clearance procedures.
2. Logistics
The cost of inland transportation in Brazil is very high, many times the cost of international transportation. During the "last mile" delivery of goods, local transportation and same-city express delivery in Brazil still need to queue up at the Brazilian Post post office for processing. Not only is the cost expensive and the delivery time long, but misdelivery and loss also occur frequently.
Brazil Post is the only major express delivery company. Despite the support of global express delivery companies such as DHL, UPS, TNT, and FEDEX, the prices are still high, the service is poor, the efficiency is low, and there are many errors.
3. Poor public security
It should be noted that since 2010, the social security situation in Sao Paulo and Rio de Janeiro has become increasingly worrying, with robberies and thefts occurring one after another. The local police are not strict enough and the quality of local warehouse employees is also poor. When establishing an overseas warehouse in Brazil, you must pay close attention to security issues, and monitoring and video recording are essential.
Amazon Brazil advantages:
1. Huge market potential
Brazil has a population of more than 200 million. In 2016, the per capita online shopping amount was about US$109.2. Its GDP ranked first in South America and sixth in the world. 70% of them are middle class, and installment shopping and mobile e-commerce are developing rapidly. Moreover, more and more sellers are entering the Brazilian market, and some listed sellers even regard Brazil as their first market.
2. Few competitors
A survey of overseas warehouses shows that most overseas warehouses are located in Europe, the United States, and East Asia. Brazil's e-commerce market is similar to that of Russia, but Russia has nearly 10 overseas warehouses, while Brazil has almost no overseas warehouses. It can be said to be a pure blue ocean.
3. Get ahead of Amazon
Amazon has been operating in Brazil for many years. Some time ago, Amazon had a bug, and some sellers found the shadow of the Brazilian site in the background. It is expected that next year, Amazon's Brazilian site will be officially opened. If overseas warehouse service providers can seize the market before the Brazilian FBA is launched and form a certain advantage, the dividends they will obtain will be immeasurable.
This is the end of the knowledge about Amazon Brazil in this issue. If you want to get more information about Amazon Brazil, please pay attention and we will continue to answer you~
