Brazil, as the largest economy in South America, the eighth largest economy in the world, the fifth most populous country, and the largest online retail market in Latin America, more and more people find dropshipping market opportunities in Brazil. Dropshipping is the business model with the least risk and the greatest return in Brazil. So, when we develop a dropshipping business in Brazil, how should we choose the most suitable mode of transportation? This article will give you a detailed answer.
For all sellers, Brazilian logistics has always been a headache for everyone. So far, the circulation of goods in Brazil is mainly transported by land, and 80% of the goods are transported by trucks, which leads to a longer delivery time. Brazil’s logistics features high transportation costs. And there are three key problems: difficult customs clearance, slow prescriptions, and high tariffs.
First: A Slow timeframe
Brazil has about 2100 airports, the second largest in the world after the United States. The number of international airports is 44, and the rest are regional airports. Among them, Sao Paulo International Airport is the airport with the largest passenger and cargo traffic in Brazil. At present, Brazil has four main airlines, such as Tianma, Gore, Azure, and Avianca.
Air transportation is mostly used to transport high value-added electronic products, which not only ensures its faster delivery speed but also ensures the safety of goods in the process of transportation. There are also many people who choose the mode of transportation by air when they carry out dropshipping business with customers in Brazil. However, customs clearance of air cargo usually takes more than a week to complete. To a certain extent, this has a great impact on the advantage of fast limitation of air transport modes.
The vertical and horizontal rivers in Brazil have created good conditions for waterway transportation. Due to the low cost of inland river transport, the competitiveness of enterprise products has been improved, so inland river transport has been greatly developed.
When carrying out dropshipping business, some friends will choose to use sea transport in view of Brazil’s unique geographical advantages. However, the problem faced by maritime transport lies with the customs agencies, because the overall time limit for document processing and cargo clearance is too long; the throughput of the port is also very poor, and the delay in unloading or loading leads to the birthing time of the ship is too long. as a result, the goods will incur additional costs.
Brazil is a country with a vast land area, and rail transport is the best solution to meet rapid transport and safety needs. Brazil has a 30200-kilometer railway network, distributed in 22 states and federal districts. However, due to various historical reasons and the rise of the automobile industry, Brazil began to vigorously implement the road transport policy, reducing the investment and maintenance of railways and reducing the volume of railway transport year by year.
These are all problems in transportation: This series of problems not only make Brazil’s transport time-limited, but also leads to its high transport costs. But the most important thing is the issue of customs clearance and tariffs:
Second: Customs clearance issues
On the issue of customs clearance: Brazilian customs inspection of imported goods is very strict. Any lack of documents may lead to the goods not being cleared. In addition, the Brazilian customs clearance process is tedious, complex, and opaque, and there may even be malicious withholding of goods by black customs. Goods that can not be cleared, naturally, can not be delivered, thus causing consumer dissatisfaction to get bad reviews.
Third: Tariff issues
On the issue of taxes and fees: The Brazilian government is very protective of local enterprises, mainly in terms of taxes and tariffs. First, the tax and tariff threshold is $0, which means that all goods are subject to a 19% tax. Documents, books, and collectibles are the only exceptions, with a tax rate of 0%. Fashion and toy goods have been hardest hit, with an additional 35 percent tariff in addition to the 19 percent tax.
How does Veeddy do it？
For the related problems in Brazilian transportation, Veeddy dropshipping has a unique dedicated transport channel, which basically does not need to pay customs duties, and will also provide DDU services: if VAT or customs duties are generated during customs clearance, the local customs will find the recipient to collect them, so the recipient’s telephone number and zip code must be filled in, and the declared value is less than 50 USD duty-free. The declared value is in the range of 50-3000 USD, and the consignee will be found to be collecting a comprehensive tax of 60% of the declared amount. The specific tax amount shall be subject to the actual destination customs.
If you are interested, please contact us, and we can introduce it to you in detail. Veeddy Dropshipping looks forward to working with you.