Article | Find out what are the serious risks for e-commerce

Although there are thousands of carriers in Brazil, including branches of large multinationals, three out of four Brazilian e-commerce companies use Correios for their shipments.

The reasons for this are mainly the prices charged by Correios, in general among the smallest, the scope of services, which effectively reach the entire country, and the quality and consistency of services, which enable safe care over time.

With the government’s intention to privatize Correios, this situation is put at risk, because, contrary to what the government claims, in the privatization processes that took place in the sector, what was immediately seen was a significant increase in prices for services and a drop in prices. quality, with the closing of branches and a reduction in the workforce.

In Brazil, the trend is even more serious, due to local peculiarities such as the immense asymmetries and logistical difficulties of a continental country and the fact that Correios is now regarded as “the long manus of the Union”, which guarantees it tax immunity .

It is, then, quite simple to understand what awaits e-commerce companies if privatization is carried out, as the government intends.

Just remember that the parcel shipping market is completely free in the country. Carriers can organize themselves as they see fit, buy new ones, act in the regions that most interest them. And even so, what can be seen are prices in general much higher than those charged by Correios, not to mention the absence of these companies in thousands of Brazilian municipalities, where only the Correios arrive.

A central aspect of all this is that, depending on the size of the price increase that the new owner of the Post Office practices, the small e-commerce operators that currently exist in the country may find themselves completely unfeasible overnight.

Another relevant issue is that the commitment to universal provision of postal services will be limited to services provided under a monopoly regime, not reaching parcel services. Thus, at the discretion of the new owner of the Post Office, parcel delivery routes that are not sufficiently profitable may be discontinued.

It is, therefore, very important that electronic commerce operators pay attention to this federal government’s initiative to privatize Correios.

The effects for the business of these entrepreneurs can be catastrophic, unlike the official discourse, which tries to sell a picture of progress, when it is really about dismantling a public structure that works sustainably and that has served companies and citizens.

*Marcos César Alves is vice president of the Postal Professionals Association (ADCAP).

**This is an opinion piece. The author’s vision does not necessarily express the newspaper’s editorial line Brazil in fact.

Source: BoF Rio de Janeiro

Edition: Mariana Pitasse

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