Plan your logistics for Brazil

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Plan your logistics for Brazil

1 Overview

The challenge

Brazil is home to over 207 million people, with the 4th largest ecommerce market in the world, offering great potential to businesses looking to grow abroad. Even if Brazil is not a direct part of your growth strategy, as the largest economy in Latin America it should be considered as part of the wider economic picture.

Your aim

After reading this guide you will understand the opportunities presented by Brazil and how to take make the most of them, as well as have a general understanding of Brazil’s place in the global balance of powers and why this affects businesses.

2 Growing your business in Brazil

Brazil is the largest economy in Latin America and home to over 207 million people. With 140 million Internet users, it’s also the 4th largest ecommerce market in the world1, and represents 42% of all business to consumer (B2C) ecommerce in Latin America.2

Ecommerce in Brazil is well developed and presents great opportunities for businesses looking to invest in the region. Brazilians are comfortable shopping online, security measures to prevent fraud are commonly implemented, and difficulties in logistics and payments infrastructure are being overcome. Furthermore, 42% of Brazil’s population are millennials, so it’s likely that ecommerce will continue to grow by double digits in the years to come.3

Brazil is a significant trade partner, not only regionally, but around the world. It is a global producer of aircraft, consumer goods, steel, automobiles, rubber and paper. Along with local providers, international logistics providers such as DHL, Kuehne + Nagel, Panalpina, Expeditors, CEVA and UPS have established operations to support Brazil’s growing manufacturing and agricultural activities.

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  1. Internet World Stats 

  2. Euromonitor Internacional 

  3. ECMetrics 

3 Quick facts

  • Today, cross-border sales in Brazil represent 14% of total Brazilian ecommerce sales1
  • Black Friday is popular in Brazil. It also coincides with an extra month of income paid at the end of the year under Brazilian Law2
  • Household appliances, clothes and consumer electronics are the most popular online categories3
  • Brazil’s parcel market grew 13.9% to 0.57 billion parcels and spend grew 15.4% to $10.27 billion BRL4

  1. PayPal 

  2. Bloomberg 

  3. eMarketer 

  4. Pitney Bowes 

4 Customer trends

It’s crucial to think about customer behaviour when expanding in new markets. How does your target customer usually buy products? What’s their preferred method of delivery? The following factors will help you consider how customer trends will affect the way you go about doing business in Brazil.

  • Mobile commerce is rapidly growing and accounts for over 20% of ecommerce transactions in Brazil1

  • Brazilian buyers are used to waiting longer for delivery. In fact, 86% of consumers are willing to wait an additional two days for free shipping, and a 10-day delivery window is average2

  • Brazilians have a strong preference for price over speed, and 59% of online shoppers report that shipping cost is a factor in their decision to purchase.

  • The average shipping cost is 29.90 BRL3

  • Brazil’s population size and makeup makes it an attractive market, though many ecommerce businesses struggle to expand into Brazil because of its challenging logistics infrastructure4

  • 92% of shoppers will complete an action to qualify for free shipping; adding more items to a shopping cart is the most incentivizing action5

  • Brazilian shoppers enjoy the experience of brick- and-mortar shopping; consider getting your product into retail locations to get more visits

  • Bloggers have a huge influence within the Brazilian fashion market; consider strategic partnerships with them to help get sales on social media. 84% of consumers polled said that their purchases are influenced by social media6

  • Returns rates in Brazil are low, perhaps due to complex returns processes. A government mandate called the “Right of Regret” allows consumers to return products within 7 days after purchase7

Brazil's B2C e-Commerce revenue and growth rate, 2012-2016

Year Revenue YoY growth rate
2012 7.9bn 28.9%
2013 10.2bn 29.0%
2014 13.0bn 27.0%
2015 15.9bn 22.0%
2016 17.1bn 7.0%

  1. Forrester 

  2. UPS and ComScore 

  3. EBIT 

  4. Statista Digital Market Outlook 

  5. UPS and ComScore 

  6. UPS and Comscore 

  7. Tech in Brazil 

5 Fulfilment models

Cross-border into Brazil

There are several ports to choose from when shipping cross-border into Brazil. Most of the country’s population is concentrated on the East Coast, making that a practical base from which to serve your customers quickly. A few ports to consider include Santos (SP), Rio De Janeiro, Vitoria and Sao Luis.

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6 Transport

Small parcel carriers

The primary small parcel carriers operating in Brazil are:

  • Total Express
  • Direclog
  • Jamef
  • Jadlog
  • TNT Express
  • Brasspress
  • Atlas Transportes e Logística

“Motoboys,” or motorcycle carriers, are worth considering to complete deliveries in congested cities. Common couriers include:

  • Moblyboy
  • Easy Deliver
  • 99 Motos
  • Vai Moto
  • Loggi

7 How to get started

When thinking about your move into the Brazilian market, think about the type of fulfillment model that best suits your business. What’s the most effective way of reaching customers and fulfilling orders? You should evaluate the import duties, customs clearances and taxes that apply to your business. You also need to determine if your product will need a trademark registration through the World Trade Center (if you decide to set up a Brazilian domain). Finally, find a fulfilment centre and carriers that provide coverage in Brazil in the regions that you’re targeting.

Market Finder contains a breakdown of the World Bank’s Doing Business Index, where you can get a heads-up about the ease of doing business in Brazil. It ranks on a scale of 1 - 190 how easy it is for a business to set up and run a local firm in each of the world economies. Ten topics are assessed to gain the score. These include the ease of getting electricity, the ease of getting credit, and the potential for cross-border trade.

When trading in a new market, it’s good to know the administrative, regulatory, and logistical challenges that may lie ahead. Navigating legal requirements and working out logistics is made a lot easier with Market Finder - find further support and tools including in-depth guides and insights.

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Ingram Micro Commerce & Lifecycle Services provides logistics solutions to help businesses connect supply and demand.

Note

The materials provided on the site are for informational purposes only. For financial, tax, or legal advice, consult a specialist.