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How To Start An E-Commerce Marketplace In Brazil?

Brazilian e-commerce section is quite matured and has way up as a global competitor in the e-commerce market. This lets online multi-vendors finding enormous growth scope and opportunities.

But do you know – What you require to start an e-commerce marketplace? Yes, you are right – Hosting, SSL, domain, inventory management, payment, and shipping required for starting an e-commerce marketplace. These are the common considerations before starting an e-commerce marketplace no matter in which geolocation you will start your online business.

Webkul is catering the clients around the globe. And, LabX is one such example. LabX Media Group is a leading Canada based marketplace for science media company delivering award-winning editorial, essential industry news, analysis, and insights for members of the scientific research and life science community.

You can go through more of our e-commerce marketplace success stories. And, get to know how our clients have benefitted using Webkul’s marketplace solution – https://marketplace.webkul.com/success-stories/

Mercado Livre, Americanas, Submarino famous Brazilian online marketplaces have proved enormous e-commerce growth opportunity in the country. Before giving the actual picture to your e-commerce marketplace business, you need to consider certain other factors based on the country you will be starting your e-commerce marketplace.

Just like marketplace cost/investment varies from country to country. Similarly, there is a certain additional requirement and legal regulations you will be needed to consider if you are planning to start an e-commerce marketplace in Brazil.

Important Considerations For E-commerce Marketplace In Brazil –

There are some important core considerations which you must need to take care of while starting an e-commerce marketplace in Brazil. Let’s discuss each one of them.

CNPJ Number: Cadastro Nacional da Pessoa Jurídica

You need to have a CNPJ number if you planning to own an online store in Brazil. 14-digit taxpayer identification number CNPJ is used for businesses in Brazil.

It stands for Cadastro Nacional da Pessoa Jurídica or the National Registry of Legal Entities. Either businesses formed in Brazil or foreign companies own assets/wish to invest in Brazil should have a CNPJ number.

Note: Want to know more about CNPJ number?

Taxation Structure In Brazil

In Brazil, the taxation of online sales is very complex. Therefore, you should have a good understanding and knowledge of taxation structure followed in Brazil.

Taxation depends largely on whether a product should be considered a good, a service or a copyright license –

  • Products & Merchandise Taxation – owned by state tax ie; ICMS and varying as per each state.
  • Service Taxation – owned by municipalities tax ie; ISS and varying as per each municipality.
  • Software Taxation – Currently, owned by municipalities tax ie; ISS on the license of the software. However, there is a pending decision that whether the download of off-the-shelf software comes under the ICMS tax. But the sale of ‘off-the-shelf’ software will come under state tax ie; ICMS.

Note: Want to know more about taxation in Brazil?

Payment Processing

There are two ways of payments processing in the marketplace-

One is Default Payment Flow, the payment made by the customer for their purchases will come directly to the admin’s bank account. And then, the admin will pay the respective multiple sellers out of the e-commerce platform such as NEFT, cheque, bank transfer, etc.

Another is Split Payment Flow, this allow split payments among multiple vendors from the single transaction made by the customer. For this, there are several third-party payment gateways available which support split payments in Brazil like Pagseguro, Paypal, Mercadopago, Moip, Adyen, etc.

In split payment, the payment will split between the sellers and the admin automatically. The sellers will receive the product payment in their linked bank account and the admin will get the commission and shipping amount in the admin’s bank account.

Shipping Options

Providing convenient shipping service to your customer is equally important as providing payment options. Therefore, you need to choose logistic options which charge a reasonable price to ship the products depending on the size and weight of the product. Because the customers will not buy if they find the shipping charges too high.

For Brazilian e-commerce marketplace, there are various options available like – FedEx, Aramex, UPS, USPS, Correios, Frenet, etc.

In case of any query or more details, kindly contact us at webkul.uvdesk.com

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