Cross border commerce in Brazil

Learn more about cross border growth and how to make international sales while accepting payment in local currencies.

Cross border is a business model that redefines geographic borders. This term  can be translated as international trade and basically distilled into sales to other countries. Cross border sales are an e-commerce trend that gained strength in 2020, attracting more consumers due to social isolation. Keep reading to discover how to use this strategy to access international markets.

Brazil’s cross border e-commerce data

Some of the reasons behind the Brazilian consumer’s growing interest in cross-border e-commerce include competitive prices, availability of new products and the growing presence of foreign brands in online ads or even on television. This is in addition to greater convenience when purchasing from international sellers: many foreign online stores have payment solutions with integrated FX, providing consumers with prices converted into their local currency.

According to the Webshoppers 45 report, produced by NIQ Ebit in partnership with Bexs, 68% of Brazil’s 87.7 million e-shoppers made purchases from international websites in 2021. After performing a sales analysis, cross border growth becomes even clearer: While overall B2C e-commerce (local + cross border) is up 32% from last year, cross border itself is up 60% and posted R$ 36,2 billion in sales.

Cross border sales figures also improved: 48% of people who purchased from international websites in 2021 would recommend e-commerce to family and friends. In 2020, 33% of consumers shared this opinion. The main driver is shorter delivery times: in 2019, international stores took approximately 42 days to deliver a product. In 2021, delivery times were down to 28 days. 71% of interviewees also stated they would continue purchasing from foreign e-commerce sites in 2022. 

2021’s standout categories and stores

E-commerce giants such as Ali Express and Amazon.com remain popular among Brazilian consumers: both sold to 44% of online consumers in 2021. However, two new titans emerged last year: Shopee e Shein. While Singapore-based Shopee sold to 56% of Brazilian e-shoppers (up from 8% in 2020), China-based Shein sold to 21% in 2021 after reporting 0% market share in 2020. Their success is linked to the fact the offered some of the most popular cross border shopping categories in 2021: fashion and accessories (38%), electronics (36%), home and decor (24%) and computers (21%).

Black Friday Cross Border

Cross border was also in the spotlight on one of the most important dates for Brazilian e-commerce: 43% of e-shoppers purchased from international online stores. Discounts, sales, free shipping and products shortages on the domestic market encouraged consumers to consider cross border options. Each consumer made an average of 3.5 purchases from international stores, averaging 5 products per cart. The average ticket was R$ 316. 

Cross border business and delivery logistics

The Brazilian Post Office (Correios) has also detected this trend and has been preparing to meet the bump in demand. The company added a feature that allows paying tax and duty via its Correios Digital app, as well as shipping fees. 

Shipping fees are what Correios charges to provide customs clearance support. This covers processing costs and return fees when a recipient fails to pay the tax owed. All international packages are required to pay this fee under the new import model.

Here is some advice on how on track international orders:

Shipping code

Always ask customers to save their shipping code and monitor their product in the Correios website frequently in order to pay shipping and other fees by the relevant deadline. If they miss the deadline, the package is returned to sender. 

When a customer opts for free shipping, defined by a shipping code that begins with the letters “R” or “U”, the deadline can be up to 40 business days. The option starting with “U” does not provide a tracking service. The prime service offers delivery in up to 12 business days after arrival in country. The Correios Packet service is also available and deliver in up to 6 days. Don’t forget to keep your receipts and shipping information until the product arrives.

Fee

There is a single postage fee of R$ 15.00, although there is always the chance tax will be payable on product ordered and – in some cases – can cost more than the price of the product itself, depending on customs rules.

Who do I contact to solve potential problems?

Despite a lack of consensus, the Consumer Defense and Protection Code states the website that sold the product is liable in conjunction with the Postal Service. However, online sellers say they will only reimburse shipping fees and related taxes. 

How do you sell overseas from Brazil? Learn more about Payout

Cross border also lets Brazilian stores sell internationally, either through a marketplace or dedicated e-commerce platform. This not only translates any branding information to the destination country’s language and provides a market analysis of customer and demand trends, it also offers customers an out-of-the-box international online payment platform  with a wide range of payment methods available. The most modern Payout solutions are capable of instantaneously processing individual or mass payments in Brazil 24×7. 

Cross border payments: sell to Brazilians and accept all local payment methods

International sales depend on understanding consumer habits in your target market. Installment plans are very popular in Brazil. The country also has other exclusive payment methods, such as Pix, and solutions for the unbanked, such as the boleto. Apart from marketing to reach the target audience: the shopping experience must an easy price conversion method at checkout and offer a wide array of locally appropriate payment methods. Otherwise, all your investment will have been in vain.

With the Payin Bexs Pay solution, your e-commerce business can interface with local acquirers and offer Brazilian payment methods as part of an integrated payment processing and FX platform that provides real-time online exchange rates. This gives buyers a more transparent experience and increases practicality for sellers, who can receive their revenues anywhere in the world. Speak to our team of experts!