The term “customs tax”, which refers to the tax on the import or export of products, sounds like a buzz in the ears of Brazilian consumers, especially. Even more so when the word “increase” is added to this term. It is something that can certainly cause a reduction in international purchases. Perhaps this is happening right now. In any case, would this be good or bad for you, as an online store owner in Brazil? Keep reading and find out!
THE INCREASE IN CUSTOMS TAXES IN BRAZIL
Recently, the federal government enacted new tax rules for imported products . These new rules have led to an increase in the cost of purchasing products from international marketplaces such as Aliexpress, Shopee, and Shein, for example. As a result, Brazilian consumers have faced greater difficulties in buying from these stores.
To give you an idea, in 2024, according to the E-commerce Trends study by Octadesk in partnership with Opinion Box, 43% of Brazilian consumers had already given up on making a purchase on an international website after encountering customs fees. There is no basis for comparison with 2023, but even so, this seems to be a fairly high number of abandoned purchases.
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This leads us to believe that if consumers are buying less in the international market, then online retailers like you, who operate in national e-commerce, may have more room to grow. Well, that's not quite the case. In fact, it depends a lot on the size of your e-commerce. Check out the next topic in this article to find out more!
CUSTOMS TAXATION DIVIDES OPINIONS IN E-COMMERCE
Among Brazilian e-commerce owners, opinions seem to be divided. A large portion of major retailers believe that, despite the recent increase, taxes on imported products are still more advantageous for international marketplaces . For this sector of e-commerce, the ideal scenario would be for the international tax burden on imports to increase even further, thus equalizing it with the national tax, attracting more consumers to the domestic market and fostering competitiveness.
Meanwhile, small Brazilian e-commerce entrepreneurs in particular are speaking out against the increase in import taxes. For these individuals, who often speak out on YouTube, customs fees were already absurd, have become worse after the new rules from the federal government, and are likely to get even worse.
- As soon as you can, read also: “Conformal Shipping: what is it and what is its impact on e-commerce?"
These small business owners buy products from Chinese marketplaces and then sell them in online stores in Brazil. In their case, the increase in import taxes does not generate competitiveness, but rather increased costs, bureaucracy, reduced profit margins, and difficulties in financial planning.
There is, therefore, a tug of war between small and large Brazilian retailers, especially in the e-commerce sector, when it comes to customs taxes. While large retailers want a higher tax, small businesses may even go bankrupt because of it. Keep reading!
SOLUTIONS THAT CAN WORK FOR SMALL E-COMMERCES
For small e-commerce businesses that may suffer from increased customs taxes on imported products, there are some solutions that may work in some cases. Some of these solutions include:
- Look for local suppliers instead of relying solely on international suppliers;
- Renegotiate contracts with international suppliers to obtain discounts;
- Invest in innovation and technology to expand the customer base and grow.
Regarding investment in technology, consider, for example, using an Inbound Marketing platform like RD Station , or even redesigning your online store using a headless CMS like deco.cx to increase page loading speed and improve the customer experience.
