Brazil PRC

The Next Big eCommerce Region

Friday, April 16, 2021
2 mins

There doesn’t appear to be any aspect of everyday life that has not been touched by COVID-19, shipping included. And nowhere is this growing need more obvious, or offering more potential, than in Latin America. In fact, 52 million people in that region are expected to make their first online purchase during the pandemic, which could create an increase of up to 30% in online consumers in some Latin American countries. What’s more, the Latin American market is expected to grow more than 8% and reach a market value of $200 billion.(1) That is a significant number of packages that will need to be delivered safely and efficiently.

A booming market

As evidenced by the numbers, the advantages of doing business in Latin America are growing, but misconceptions still abound. For instance, some may believe it’s too risky because shipments get lost or delayed. Others may think it’s too costly to ship there. But these concerns are outdated and no longer relevant, especially with the help of a company like SkyPostal that has the service and solutions to not only make shipping to Latin America manageable but also highly profitable for businesses.

SkyPostal has the proprietary technology to track and deliver packages and mail to all Latin American countries at a fraction of the cost of the courier and postal alternatives, making them the choice for any seller, shipper or consolidator that requires time defined and reliable cross-border B2C eCommerce logistics and commercial mail advertising in that region.

Growth categories

While most people in the United States pay little attention to direct mail, residents of Latin American countries receive much less direct mail marketing, making this form of advertising much more effective. For example, a U.S. citizen might get 500 pieces of mail in a month, and most go in the trash. In contrast, in Latin America people get more like 30 pieces a month, and they’re much more likely to read those items and pay attention to them.

SkyPostal can make sure that direct mail pieces get delivered so they can deliver results.

Technological innovations

Ordering cosmetics in Mexico and supplements in Brazil are major areas of growth in those countries; these are items people pay a lot of money for and, as a result, want assurances that they will be delivered. SkyPostal’s innovative use of artificial intelligence (AI) provides the security and tracking so companies know their products are being delivered safely and quickly.

SkyPostal can do this using their Tax ID Collection service, HS Code Retrieval and Post Code Validation. The Tax ID Collection service from SkyPostal searches available databases and/or contact consignees via its secure import portal to obtain shopper’s Tax IDs prior to shipping. The system also validates the IDs at label creation to avoid sending items which will end up held or confiscated by customs.

Since some countries require HS Codes for every shipment. SkyPostal offers a solution based on AI that can take the product description and assign a Harmonized System (HS) Code to any shipment that lacks one. These codes are commonly used throughout the export/import process for goods to assign a duty or import tax and are a standardized numerical method of classifying traded products. The HS is administrated by the World Customs Organization (WCO) and is updated every five years.

Finally, SkyPostal’s Post Code Validation system is designed to validate post codes at shipment creation. Invalid post codes will not allow the shipment to be processed, so a shipment that will end up lost is never sent in the first place.