Capitalizing on Ecommerce in Latin

AmericaBy Adam Kidan

Launching cross-border commerce

• Entering foreign territories can be risky, so consider working with local web platforms that people know.!

• Many shoppers in Latin America will naturally gravitate to such names as Amazon or eBay.!

• Other local leaders have become prominent, including MercadoLibre, B2W Digital and NovaPontocom.

Logistics • You can only sell goods or services through your website if you can offer effective international shipping.!

• If they don’t know how their purchases will be delivered, cross-border consumers won’t use a site.!

• Partner with a local logistics provider that knows the market.!

• Know that the cost of logistics in Latin America stays high; about 15 percent of the cost of sold merchandise according to the Latin American President for DHL Supply Chain Logistics.

Payment Methods

• Alternative payments such as credit card are gaining popularity. • Cash-on-delivery is still widespread. • Mobile ecommerce is becoming more and more popular.

• Almost a quarter of shoppers have used their smartphone for payment at least once.

What about Brazil?

• 299 of the top 500 Latin American commerce sites are based in Brazil.!

• 81 percent of Brazilians research appliances online, compared to 66 percent of Mexicans and 73 percent of Argentines.!

• In 2013, Brazilian online shops generated revenues of $15 billion, three times more than Mexico and Argentina combined.

Selling in Brazil

• It remains expensive and complicated.!

• There are a total of seven different income taxes, which are cumulative.!

• Merchants that decide to use cloud service outside of Brazil for their online stores are charged 40 percent on top of the invoice as an additional tax.!

• Brazil imposes a flat import tax of 60 percent on the cost of merchandise valued up to $3,000.