Team eCommerce Next interviewed Mr. A.J. Hernandez the CEO of SkyPostal, Inc. to get more insights on shipments to Latin America & challenges, best-selling products, and increase in shipment rates. Following is our interview with him:
What is the best way to ship cross-border eCommerce shipments into Latin America?
The best way to ship to Latin America is to work with alternative delivery services that offer a more reliable service than the postal network and much more reasonably priced than the express carriers. In addition, the ADSs have regional knowledge that can be very helpful in navigating the often-complex world of customs clearance and final mile delivery in Latin America.
How has COVID impacted eCommerce?
COVID has exploded eCommerce all over the world and Latin America is no different. What is different in Latina America is that more people were “forced” to try online shopping for the first time. These people were once wary of online shopping for fear of fraud or never getting their product. Now they are more comfortable and have become regular online shoppers.
What are some of the challenges that sellers/shippers face when sending orders to Latin America?
The biggest challenge is the lack of reliable service via the postal networks. Sellers are used to using the USPS, Canada Post, or the European Posts and getting good service but this is not the case in Latin America. The postal service network in the region is very unreliable and the result is poor user experiences that is why it is important to work with private operators that know the region.
Another challenge is understanding the import duties and taxes, which can be complex but with the right partner, they can easily be managed.
Are cosmetics not allowed in Mexico?
Many shipping companies have stopped accepting cosmetics into Mexico including FedEx, DHL, and UPS but cosmetics can be imported. The problem is that they cannot be imported into Mexico City via the simplified courier clearance and must go through a much more tedious and expensive formal clearance. SkyPostal has developed a solution to import cosmetics via Nuevo Laredo, on the other side of Laredo, Texas where simplified clearance is allowed.
What are some of the biggest selling products?
Clothing, shoes, electronics, baby goods, and phone accessories are very popular, but cosmetics and health supplements have seen a huge increase over the past few years.
Why has shipping gotten more expensive?
Shipping has gotten more expensive because there is not enough transport supply to meet the transport demand. This is directly related to the COVID pandemic. Airlines have fewer flights and less frequency, this creates a bottleneck for transport and an increase in transport rates.
About A.J. Hernandez
A.J. Hernandez the CEO of SkyPostal, Inc. has been in the international logistics industry since 1987. In 1992 he developed SkyBox, a B2C cross-border shopping service for Latin American shoppers. After selling SkyBox to Lan Airlines in 2001, he founded SkyPostal. SkyPostal quickly became a leading private mail and parcel delivery network in Latin America. A.J. is regarded as an industry expert on international cross-border e-commerce package delivery, especially in the complex Latin American market.