(Picture source: Tuchong Creative)
According to Ebit/Nielsen and Bexs data, in 2021, Brazil has grown by nearly 60 million buyers in the cross-border e-commerce field. The main reason is that in the past three years, delivery efficiency has been continuously improved and the consumer experience has been greatly improved. From 2019 to 2021, the shipping time from China to Brazil dropped sharply from 42 days to 29 days.
After a buyer places an order, they have to wait for the product to be shipped from China, check whether the product has passed customs clearance, and wait for the last mile of delivery. At the same time, after the order is shipped, how can the seller fully understand the delivery process, ensure that the product reaches the customer in time, and ensure that the product is not taxed? This places increasing demands on logistics services.
1. Why is Latin American logistics time-consuming and expensive?
To understand how logistics affects taxes, you must first understand the two logistics delivery methods: DDU and DDP.
DDU means "Delivery Duty Unpaid", meaning the buyer is responsible for paying any customs clearance, duties and taxes associated with the purchase. This is the most common way to purchase goods in cross-border business. The average price of cross-border products in Brazil is US$25. According to Brazil's "Law on the Simplification of Taxation System", international postal suppliers may be exempted from import taxes if their goods including freight are less than 50 US dollars.
If a product is sent via DDU and exceeds $50. Latin American consumers will be taxed 60% of the total value of the product and need to pay import fees. On most platforms, such as Mercado Livre, international merchants are not allowed to sell products over $50, thereby avoiding taxes and reducing buyer dissatisfaction.
Even if other platforms allow sellers to sell products above $50, they still risk being taxed, and the platforms do not always inform consumers that products need to be taxed, or even help buyers pay taxes.
Once consumers do not know whether the products they order are taxed, they often fail to pay. As a result, if the platform cannot receive the goods, it will naturally not pay the seller. In addition, the products will take a long time to be returned to the place of shipment, and the seller will face huge losses.
DDP means "Delivery Duty Paid", which means the seller will pay all customs clearance, duties and taxes. For example, Amazon requires that if the seller's product exceeds US$50, the DDP method is automatically used. Even if it appears on the homepage of the platform, as long as the product includes tax, the buyer can clearly know the tax and logistics costs that need to be paid. This can ensure the buyer's satisfaction, but it will not have an advantage in terms of price.
Sellers need to understand the rules of each platform before settling on the platform. After successfully settling in, they need to upload products, operate sales, process orders, international transportation, and then be responsible for the tax risks of customs clearance. This is a process that consumes cost, time and energy. How to save operating costs and energy?
2. Cross-trade store CCS requires no operating costs and increases profits!
cross-trade store CCS can help sellers sell on 6 major platforms in Brazil, including Amazon, Mercado Livre, Shopee, Extra, Ponto and Casas Bahia.
After the seller registers in CCS, he only needs to upload the product to the backend. CCS will handle all sales operations, marketing and promotional activities, and sellers will receive orders in the CCS system. Sellers only need to download the label and ship the product to a Chinese shipping warehouse.
Therefore, the seller is only responsible for the first mile of logistics. CCS is responsible for all international logistics, and CCS pays the logistics costs.
When the product arrives at Brazilian customs, CCS is responsible for customs clearance and taxation. It not only adds the tax cost to the price of the product and will automatically pay the tax, it can also keep the product still competitive and greatly avoid the cancellation of the order. probability. The tax calculation of
CCS is an intelligent tax calculation based on statistical data, which is the most competitive price and will automatically pay taxes through API. Through cross-trade store CCS, sellers can reduce the loss of products that have not paid taxes, and they do not need to be responsible for taxes or understand various Brazilian laws and regulations.
can be sold to the Brazilian market through the cross-trade store CCS with one click, without operating costs and greatly increasing profit margins!
