Top 6 Issues with cross border transactions in Brazil
1. Brand Reputation
Because the buyer has a bad shopping experience the seller has no chance at the customer’s future business. The seller often has a bad reputation for his brand
2. Total Price
First, the price paid for international freight is uncompetitive and makes cross border purchasing very expensive. Second, the price at checkout does not match the actual total price. This is mainly because of taxes.
Due to additional taxes and customs time, some buyers will not accept paying the extra fees or not to pay them on time. Thus, the cargo must be returned to the seller and the seller must return the value of the product to the buyer.
4. Time Delivery
Due to the uncertainty regarding international freight and the time stopped at the IRS (in Brazil, the Receita Federal Brasileira, or just RFB), the buyer does not trust the promised time at checkout for shipping.
Import taxes in Brazil are peculiar. Consequently, the e-buyer often has to pay additional fees after the product enters Brazilian soil, making them angry and unhappy.
The buyer cannot see the value of the purchases in Reais and does not have many payment options. This way, your only way to pay is through a one-off payment for an international purchasing-enabled credit card, which many potential Brazilian buyers don’t have.