RIO DE JANEIRO, BRAZIL – In another attempt by Asian e-commerce platforms in Brazil, Ali Express, the world’s largest virtual shopping mall, opened its platform to Brazilian sellers to offer their products. Until now, products purchased through Ali Express came from China.
Brazil is the first country in the Americas where Ali Baba allows local sellers to register on the platform, and the sixth in the world. The platform belongs to the Ali Baba Group of Chinese billionaire Jack Ma, and is entering an increasingly competitive scenario in which domestic and foreign companies are investing to attract the new Brazilian digital consumer.
^We have already opened the platform to local sellers in Russia, Turkey, Spain, Italy, and France. We started registration three weeks ago, and I can say that we already have thousands of sellers,” said Yaman Alpata, Ali Express head of sales in Brazil.
In addition to the competition, another challenge for Ali Express in Brazil will be logistics. Local companies are expanding their infrastructure and building more distribution centers to shorten delivery times. They are also investing in the so-called “last mile” so that the product reaches the buyer as quickly as possible. Ali Express does not have its own distribution center in the country.
^The distribution center is the hub of logistics operations. We have plans for our own center. This is one of our priorities,” Alpata said.
In Brazil, the shipping of products purchased from Ali Express is coordinated by Cainiao, an Alibaba Group logistics company that already operates in the country. Sellers can also use their own logistics if they wish. Products originating from China take between seven and ten days to arrive in the country. This deadline depends on the logistics with local partners in the sector and can be the same day or the day after the purchase.
Sellers of any size can register on the platform, provided they have CNPJ or are a registered micro-business (MEI). A commission of between 5% and 8% is charged for displaying their products on Ali Express, depending on the product type.
According to Viviane Gomes Almeida, sales manager of AliExpress Brazil, Brazil is essential to the company. The decision to register Brazilian sellers has already been made, especially given the growth of e-commerce in the country. Ali Express has been in the country since 2019.
“We see a lot of opportunities. Brazil is like a land of tall grass where you have to weed,” Viviane said.
But the difficulties of global logistics, with increased freight volumes and a lack of ships and planes for deliveries, are also factors the company has taken into account in approving Brazilian vendors.
“Cross-border logistics has also become a major challenge. And with that, the spread of e-commerce has also increased, not only in Brazil but worldwide. In Latin America, Brazilian e-commerce is one of the fastest-growing. In Brazil, with the expansion of distribution, we will have challenges providing the so-called ‘last mile’,” explains Yaman Alpata.
The growth of online sales in Brazil has attracted other Asian e-commerce platforms. Singapore’s Shopee already works with Brazilian sellers, and China’s Shein, which specializes in clothing at low prices, offers products imported from China. Both landed in the country at least two years ago and are vying for the attention of Brazilian consumers.
According to the report on e-commerce in Brazil prepared by the Conversion agency, e-commerce in Brazil reached 1.49 billion hits last February, up 21% from the same period in 2020. The report shows that imported products increased by 51.43% year on year, which can be understood as a reflection of the country’s growth of Asian online shopping platforms.