Cross-Border E-commerce fulfillment service for the Brazilian market
Looking for a new opportunity to grow your online business?
E-commerce companies looking to expand internationally will find Brazil to be an outstanding opportunity. The country’s e-commerce industry is booming and continues to do so: in 2020, the number of digital buyers is set to exceed 130 million, and the sector is expected to grow by 18% reaching a total of R$ 106 billion.
However, accessing this market is not easy as international e-sellers will be confronted with the specificities and complexity of the Brazilian trading environment.
NOVATRADE helps Online Sellers to expand in Brazil via fully-managed and turnkey solutions. Partner with us to establish your E-commerce and brand presence in Brazil at low risk and low cost."
Be One of our Happy Customers!
They refer Novatrade for managing your Brazilian e-commerce.
Novatrade helped us from the very beginning and has been part of all the steps of our development in Brazil both online and B2B. They demonstrated true commitment to make our brand a success, always willing to find solutions for the challenges we encountered.
Novatrade was incredibly knowledgeable about all the benefits (and pitfalls) of selling directly in Brazil. Working with them allowed us to save our customers money and reach all new audiences, leading to immediate and significant sales growth.
I admire their obsession with solving their customers’ problems in the best, and most economical way possible. From the collaboration between Rappi and Novatrade and my experience of working with them, I am confident to say that Novatrade is qualified to manage and execute any e-commerce, logistical and/or tax projects.
We changed our local import operations to Novatrade’s and we are very happy with their services. Novatrade is a serious, reliable and a very trustable company.
Very fast service and an excellent team, helping us to really take care of what matters: our clients.
One Complete E-commerce System
Novatrade is built as a single system for orchestrating the entire flow of commerce, from pricing pre-analysis, import management, customs clearance, inventory, and fulfillment orchestration. All critical commerce functionality is included and designed to work together in real-time so everything is always in sync and orders run smoothly, exactly as they should.
One of the World’s Fastest Growing E-commerce Markets
Restricted Access to Foreign Online Sellers
Overseas online shops cannot deliver their products to customer´s door because paying Import Duties from abroad is forbidden in Brazil.
80% of the Ecommerce market requires domestic payment methods but it is forbidden to provide Brazilian payment gateways from abroad.
Specialists’ word about Brazilian barriers
Companies without a local entity in Brazil have restricted access to domestic payment methods. Most international merchants start their operations in Brazil accepting card payments and are faced with decline rates typically of 70%.
This happens because only about 30% of cards issued in Brazil, even international labels like Visa or Mastercard, are enabled for cross-border payments. Furthermore, access to alternative domestic payment methods, such as boleto bancário and online banking transfer, is also limited to local companies.
“Brazil: sell cross-border or go local?”,
20 June 2018 / thepaypers.com
When expanding cross-border into any new marketplace, conducting in-depth research into local fees and taxes is essential for preventing such nightmarish scenarios. In Brazil, for example, there are no less than seven different income taxes. An added headache is that they are cumulative.
Furthermore, merchants using cloud services outside of Brazil for an online store are charged 40% on top of the invoice as an additional tax. Brazil also imposes a flat import tax of 60% on the cost of merchandise valued up to $3,000.
As the buyer has to pay the taxes up front, the delivery process can sometimes drag on if the sum is not paid promptly. If you weren’t even aware of the existence of this tax, it follows that you also did not know that the item would not be delivered before payment was made.
The best solution to prevent this sort of nightmare is to consult with local experts who are familiar with the country’s taxes and tariffs before launching in that market.
“Cross-Border E-commerce Nightmares: How To Avoid Five Common Pitfalls”,
3 March 2016 / forbes.com
Major challenge associated selling e-commerce services into Latin America is that of regulation. There are at least six different regulatory landscapes that merchants need to understand and navigate with differing and complex tax arrangements.
“E-commerce in Latin America: Challenges, Opportunities and Rewards”,
07 February 2018 / allpago.com
It is not legal to ship goods to Brazil under the Incoterm DDP scheme with delivered duty paid by the vendor. International merchants can estimate the final price including import duties for the consumer, but they cannot collect the payment for import duties. The import duties will have to be paid directly by the Brazilian consumer or a third party entity with legal representation in Brazil.
Imports and Fulfilment of E-commerce from Abroad to Brazil,
19 June 2018 / techinbrazil.com
Going Local is the Key Solution
THE TRADITIONAL WAY (VERY SLOW)
Open a Subsidiary in Brazil. Setup time ±12 months. As you can imagine, this is a long process. If you really want to manage everything yourself in Brazil, we have at Novatrade Group specialists to assist you.
OUR SOLUTION (SIMPLE, FAST, EFFECTIVE)
Use the Novatrade Cross-Border E-commerce service. Setup time ±1 week. We will take care of every local aspect for you and you will be able to start selling in Brazil in the coming weeks!
The Benefits of Contracting Us
Success Stories in Brazil
Rappi is a popular delivery application that goes far beyond food delivery, offering anything from drinks and beauty products, to essentials for your pet. With presence all over Latin America and more than 140 cities in Brazil, the company revolutionizes the way people do their shopping since 2015.
Rappi approached Novatrade because they were looking for a more efficient way to distribute their merchandise to their independent couriers. Before, couriers had to pick up their bags, workwear, stickers and other items at one of Rappi’s shops, however, this was costly, time-consuming and impractical for both the company and the drivers.
Novatrade has transformed this system into a convenient e-commerce platform that can be accessed by the couriers being integrated into the Rappi application, and today fulfils around 20,000 orders per month from all over Brazil.
With more than 20 years of experience in their field, IK Multimedia designs and manufactures apps, software, hardware and accessory products for music creation and playback on computers and mobile devices. Thanks to their expertise, they have developed unique and innovative solutions in collaboration with some of the top musical instrument companies, giving millions of musicians from all over the world the tools they want and need to be creative and productive.
Following their motto “Musicians first”, IK multimedia wanted to make their products easier available and more affordable for their Brazilian customers. After identifying the great potential of Brazil’s booming e-commerce sector, they decided to expand their long-time distribution through intermediaries with direct online selling.
Through its e-commerce fulfilment service, Novatrade helped IK Multimedia to drive down costs, revise their pricing strategy and quickly launch their e-commerce platform and online marketplace operations – with great success from the first month on.
Vitra is a renowned furniture manufacturer from Switzerland with a long history of working closely together with the world’s most important designers. Their creativity combined with the company’s technical and conceptual expertise is what brings about original pieces, enriching offices, public spaces and homes.
As part of their global expansion, Vitra opened a subsidiary in Brazil in 2013, but due to the complexity of the country’s trading environment, they decided to outsource the import and fulfillment process to Novatrade.
As a close partner, we helped them to redefine their pricing strategy, continuously optimize logistics and tax flows, and manage several imports on a monthly basis, distributing Vitra products to major organizations and retailers.
CZ MBI is a surgical manufacturer selling gauge blades and instruments under different brands to podiatrists all over the world.
In the company’s effort to expand to Brazil and reach professionals in the form of both final consumers and intermediaries, Novatrade assisted them by opening an e-commerce branch for B2B and B2C, handling the setup of local stock as well as the operation management in collaboration with CZ MBI’s Brazilian sales representant.
By receiving fiscal and pricing strategy support, CZ has been able to launch their expansion to Brazil in a cost-efficient way supported by the smooth flow of our fulfillment services.
EngieApp is an Israeli company sponsored by Uri Levine, Waze co-founder, that specializes in a full car maintenance solution.
Thanks to an ergonomic OBD device found under the dashboard and connected to a phone app, EngieAPP allows you to diagnosis over 10.000 car errors and put you through its network of mechanics and gas stations to get real-time quotes from local service providers.
EngieApp launched in 2016 and is already active in the UK, Mexico and now Brazil.
They arrived in Brazil with big expectations, forecasting to double their global sales only in Brazil due to the size of the market. EngieApp contacted Novatrade at the end of 2017 to set up their operations quickly by the end of the year. A few weeks later they began distributing in Brazil through our cross-border fulfillment service benefiting from the Christmas sales increase.
Novatrade manages all operations from import to delivery and payment while digital and PR campaigns are launched continuously to support brand awareness.
In less than a semester, their sales boomed in Brazil making up 25% of their global sales with more than 25.000 products delivered and continue to grow.
Being a cosmetic startup founded by two young women entrepreneurs with Brazilian, Indonesian and Ukranian background, Madame Crème uses natural ingredients from around the world to create the best skincare products for women.
Through their scrubs, face masks and cremes, as well as their slogan ‘Perfection is exaggerated’, the company’s mission is to empower women by making them feel good, promoting self-care and self-acceptance.
Madame Crème collaborates with Novatrade to further develop their business strategy and enter into the Brazilian market. While we manage the import and fulfillment operation in Brazil on the company’s behalf, they use their expertise to handle all the marketing efforts.
Stührling is an international brand that built its name over 18 years of watch production and today is known for selling seriously crafted watches at reasonable prices.
Their aim to offer the Brazilian public a range of high-quality timepieces after seeing high traffic from Brazil on their US website, brought about a partnership with Novatrade, who manages for them the import and e-commerce fulfilment, as well as the sale of their branded products to customers all over Brazil.
To reach as many customers as possible, Novatrade has not only launched a Brazilian landing page for Stührling’s website, but also established presence on popular local online marketplaces.
Evapolar is a brilliant Russian start-up that has developed a well-designed "Personal Air Cooler" which can decrease the room temperature by 4 – 17 °C only using 10 W of electricity.
Before Novatrade, Evapolar was remote controlling their operation from abroad and drop shipping their products to their final customers in Brazil. However, due to the barriers encountered in the process, such as long delivery and goods being stuck at the customs, customers were reporting a bad shopping experience.
To improve customer satisfaction, going local was the key, so instead of getting involved in the long process of opening a subsidiary, the company decided to partner with Novatrade to set-up a local stock and manage the operation from Brazil.
While formulating an accurate pricing strategy for their new business model, we used our network of partners to find a suitable marketing