In the government’s sights, Shopee already has 2 million Brazilian sellers – Tecnoblog

Success in Brazil, the Shopee has been drawing the attention not only of the competition — which already accuses it of “smuggling” and asks the government to take strong measures — but also of small and medium-sized retailers, who see the platform as a showcase to sell their products online. This week, the company announced that surpassed 2 million Brazilian sellers registered.

Shopee delivery (Image: Disclosure)
Shopee delivery (Image: Disclosure)

In addition to small entrepreneurs, big brands such as Nivea, Reserva, Empório Nestlé and more make up this base. According to Shopee, 85% of sales on its marketplace are made by Brazilians.

The number of subscribers far exceeds other e-commerce companies, including Magazine Luiza and Americanas, which have just over 100,000 registered local sellers. Also for comparison purposes, Mercado Livre has 9 million registered sellers throughout Latin America.

In an interview with Sheet, Felipe Piringer, director of marketing and strategy at Shopee Brasil says that the local e-commerce operation “is not a translation of the foreign site”. The company claims to have trained more than 50,000 entrepreneurs through webinars in the last 12 months.

But such popularity has other players worried. As we reported at the end of March, a delegation formed by representatives of companies, such as Multilaser and Havan, asked the federal government to take energetic measures to contain what they called a “digital street vendor”.

Fees would have “reduced impact” on the operation

For competition that advocates tax reform for the sector, platforms such as Shopee, AliExpress and Shein practice smuggling by taking advantage of a loophole in the law related to importing goods under US$ 50 – which is valid for individuals.

After the pressure made by the delegation, the first indications emerged that the government would be working on a provisional measure to collect the values ​​directly from the platforms, instead of taxing the consumer when the product arrives at customs.

As this is an import-targeted tax, it is unclear how this type of measure may affect registered Brazilian sellers. But from a business point of view, it is not impossible to think that when charged, the marketplace ends up passing on some cost to partners.

Anyway, at Sheet, Piringer said the MP would end up having “low” impact on Shopee Brasil’s operation, since only 13% of its sales are of imported products. The executive also points out that the platform does not matter anything directly — it is just a channel that sells third-party products.

investing in Brazil

Shopee has Brazil as one of the key pieces in its strategy: the country is among those selected to receive a share of the US$ 1.5 billion investment destined for Latin America in 2022.

The estimate of the American bank Goldman Sachs is that the platform already represents a slice of 5% of Brazilian e-commerce – this in just over two years since the company arrived here, and the prospects are for accelerated growth.

With salespeople in mind, the company maintains a competitive proposal. In addition to the training offered through programs at its Education Center, the company charges 12% commissions from partners — while other players can keep up to 20%. In addition, Shopee does not charge the seller a commission if the purchase is canceled.

Finally, sellers registered on the platform also have internal tools aimed at advertisements (Shopee Ads), thus being able to boost their own sales on the app and on the website.

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