As we all know, Russia and Brazil have a huge market space, but there are nearly 10 overseas warehouses in Russia and very few in Brazil, why is that? Brazil market as once the top three export markets in the world, where is its potential?

1. Large population, middle class is dominant

Brazil has a population of more than 200 million, of which the middle class occupies 70%, and its GDP ranks first in South America and sixth in the world. Brazil's installment shopping and mobile e-commerce are developing rapidly, with a per capita online purchase of about $109.2 in 16 years. More and more sellers have entered the Brazilian market in recent years, and some listed sellers have taken the Brazilian market as their first market.

2. Few competitors

Brazil's logistics dilemma makes it relatively few merchants stationed, according to the 2018 overseas warehouse research shows that most overseas warehouses are distributed in Europe, America, East Asia, Brazil's e-commerce market is similar to Russia's, but there are only a few merchants stationed in Brazil, and it has to be said that it is a pure blue ocean.

3. Preempt Amazon

Amazon layout of Brazil has been some years, before Amazon BUG in the background reveals its Brazilian station shadow, is expected to be officially launched next year Amazon station, overseas warehouse if you can seize the market before the landing of Brazil FBA, and the formation of certain advantages, will get immeasurable dividends.

Brazil's natural advantages, indeed, many businesses want to capture this city, then capture it where the obstacles?

1. Strict customs clearance system

Brazil is one of the most difficult countries in the world to clear customs, in addition to air small parcels are often checked, especially in FedEx and DHL can be said to be a must check, and to provide the VAT registration number of the receipt.

Brazilian customs regulations, all goods sent to local private goods, the same number of goods can not exceed 3pcs, otherwise the customs will refuse to clear the goods and directly arrange the return of the goods (no notice before the return), all the costs incurred by the sender.

If the quantity of the same product exceeds 3pcs, it can only be sent to the company, not to the individual, and it should be imported in the mode of official customs clearance. If the shipment needs formal customs clearance, the recipient must have a record registration in the local customs, but at present, only two ports in Brazil, VCP and GRU in São Paulo, can handle formal customs clearance procedures.

2. High logistics cost

The cost of inland transportation in Brazil is very high, which is exponentially higher than the cost of international transportation. In the "last mile" delivery of goods, Brazil's local transport and the same city express also need to go to the Brazilian post office to queue for processing, expensive and time-consuming, not to mention that the wrong delivery lost also happens.

Brazil Post is the only one, although there are DHL, UPS, TNT, FedEx and other global courier companies to supplement, but in general is still expensive, poor service, low efficiency, more errors. Brazil does not have a formal courier company in the same city, although certain motorcycle riders actually carry out some documents and items received and sent in the same city, but none of them have formed a scale, industry.

3. High taxes

Brazil customs features three, inefficient, cumbersome process, not transparent, and easy to attract high fines. Parcels sent to Brazil, regardless of value and weight, the local customs have to levy duties. According to incomplete statistics, the tax rate in Brazil is 95%-100%, and can not be low declaration, low declaration will be revalued.

4. Customary strikes

In Europe, there are occasional strikes, but they are generally less frequent and of short duration. However, in Brazil, customs, dock workers and truckers strikes are habitual and last for a short period of time.

5. Law and order chaos

Since 2010, the social security situation in São Paulo and Rio de Janeiro has become worrying, with many robberies, local police not strict enough, and poor quality of local warehouse employees. Therefore, it is especially important to pay attention to security issues when building overseas warehouses in Brazil, and monitoring and video recording are essential.

It can be seen that opportunities always come with challenges, and a mature and reliable overseas warehouse system is essential to enter the Brazilian market.