Updated: 2022-05-12 17:59:29
Whether you are a Brazilian or not, if you are exploring more possibilities of dropshipping Brazil, you are in the right place.
Like many markets around the world, e-commerce is changing the way products are sold in Brazil. Dropshipping has become a popular e-commerce model in Brazil. However, the import tariffs and taxes are high in Brazil. So dropshipping in Brazil is mainly based on national dropshipping, which means working only with local dropshipping suppliers, avoiding tariffs and risks from the international market.
So is national dropshipping better than international dropshipping? For those B2C companies outside Brazil and dropshipping companies in Brazil, it will be challenging to dropship products from other countries to Brazil. Is there a better solution for dropshipping Brazil? Let’s figure it out in this article.
Dropshipping is a well-known e-commerce business model that allows you to sell online without keeping any inventory or shipping products yourself. Like this, you are able to sell worldwide wherever you are located cause the dropshipping suppliers will ship the products directly to your target customers. Usually, European and American countries are the main target markets for dropshipping, while China is the main supplier market of dropshipping products and logistics.
Brazil is one of the fastest-growing Latin American countries for e-commerce with almost 46 million people shopping online at least once in Brazil during 2021. In the first half of 2021, the Brazil e-commerce increased by 31% and mobile sales increased by 56.2%. Brazil is definitely a great market with significant potential for growing dropshipping.
Compared to popular dropshipping markets like the US, there is less competition for dropshipping in Brazil. And more and more dropshipping suppliers for Brazil are emerging to provide massive products and reliable deliveries.
A commonly known and popular form of dropshipping is international dropshipping, sourcing products from foreign suppliers and shipping them directly to Brazilian customers or customers in other countries.
This way of dropshipping means importing products from one country into Brazil or other countries, retailers will face challenges such as long delivery times, return and exchange difficulties, high taxes, and currency exchange issues.
As we mentioned at the beginning of the article, more national dropshipping suppliers have emerged with the growth of dropshipping in Brazil, and dropshipping in Brazil has gradually evolved into national dropshipping. Retailers deal only with Brazilian suppliers and sell to Brazilian customers, with reais as the transaction currency.
So is national dropshipping better than international dropshipping? Let's take a look at the advantages and challenges of national dropshipping in Brazil.
Brazil's dropshipping suppliers make it possible for national dropshipping. The whole dropshipping process is carried out in Brazil, and those companies responsible for inventory storage and product delivery are also located in Brazil. This model is a good way to avoid possible risks in the international market and its advantages are obvious.
• Fast Delivery
There is no doubt that the delivery distance of national dropshipping is shorter. And the whole delivery is simpler and faster, which can effectively reduce the probability of delivery delays. At the same time, the cost of national delivery is relatively low.
• No Import Tariffs
One of the biggest benefits of national dropshipping is that it can save a lot of money on tariffs and taxes. For dropshipping beginners in Brazil, they can better guarantee dropshipping profit margins.
• No Currency Exchanges
Most of the international suppliers use the US dollar as the transaction currency, while the national dropshipping is mainly based on Brazilian suppliers. They use the local language and currency to avoid the trouble of currency exchange and the possible losses caused by exchange rate changes.
• Easy Returns and Exchanges
National dropshipping means that retailers and suppliers will have closer distances, allowing them to build closer relationships for easier negotiation. Returns and exchanges of products will be more convenient without incurring high international shipping costs.
Is national dropshipping always the perfect choice? For beginners, it may mean lower start-up costs and a better customer experience. But for those who want to expand their dropshipping business, national dropshipping has the following limits and challenges.
• Limited Dropshipping Suppliers
National dropshipping suppliers are still in the emerging stage. There are still some people who question dropshipping and are reluctant to cooperate with small and medium-sized dropshipping stores. And there are still very few suppliers who focus on national dropshipping and provide delivery or customization services. Many retailers prefer working with Brazilian suppliers on AliExpress.
• Less Product Variety
One result of limited suppliers is less product variety. Many national dropshipping suppliers only provide products under a certain category. In many cases, retailers need to cooperate with different suppliers to obtain more kinds of products. In addition, they may have to cooperate with local traditional suppliers. Most of the products are basic styles, which may no longer be popular.
• High Local Competition
National dropshipping is based on traditional retails in Brazil. This means these two business models sell the same products but dropshipping will compete with traditional retail, especially one that already has a brand and reputation. There will also be fierce competition among the national dropshipping stores, because the sources of the products are all local suppliers in Brazil, with little differentiation.
• Lack of Dropshipping Systems and Integrations
The reason why international suppliers can undertake international dropshipping businesses is that they have complete dropshipping systems, high degree store integrations, and mature delivery services. They have more experience in dropshipping, while national dropshipping suppliers are still relatively lacking in these aspects.
We can see that although national dropshipping has advantages in the early stage, its limits and challenges may also be fatal to dropshipping businesses. So is there a better solution for dropshipping in Brazil?
If you are curious about the following possibilities for dropshipping in Brazil:
• You are located in Brazil but consider working with a dropshipping supplier from a country other than Brazil.
• You are located in a country other than Brazil and want to sell to Brazil through dropshipping.
• You are located in Brazil but consider dropshipping to other countries.
So why not consider partnering with SourcinBox?
You may have heard of us for the first time, yes, this is one of the best dropshipping suppliers located in China. We have close contact with a large number of product manufacturers and mainstream logistics providers. So we are able to provide good supply chain support for dropshipping in Brazil. We would love to tell you more about SourcinBox.
We don't produce products, but we work directly with source manufacturers, what does that mean?
First of all, you should know that the AliExpress products are from Chinese suppliers or maybe US suppliers. But these suppliers actually end up getting products from Chinese manufacturers, so the product you buy from AliExpress has gone through multiple suppliers to get to your hands, and the price may have increased a lot.
And we source products for you directly from the manufacturers, almost everything legal, including the bestsellers on AliExpress and Amazon, but at much lower prices.
To improve the efficiency of dropshipping order processing, we provide multiple store integrations including Shopify, WooCommerce, Yampi, and SHOPLAZZA. And more integrations for Brazil are on the way in the future.
Product import, order synchronization, real-time order tracking, etc. will all be done on our app through store integration. and you just need to focus on other more important things like marketing.
Shipping is one of the biggest concerns for those who dropship to Brazil, and it is one of the biggest challenges of international dropshipping. For this, we are able to offer enough cost-effective shipping methods.
In addition to the well-known ePacket, we have much faster shipping methods but as cheap as ePacket, such as Yanwen, Yun Express, CNE, etc. Shipping to most countries including Brazil can be delivered in about 1-2 weeks.
We recommend our clients use instant payments to transact with us. We provide guaranteed payment methods such as PayPal, Payoneer, and bank transfers. For Brazilian customers, PIX and Boleto are also available.
Returns and exchanges of international dropshipping are difficult, and sometimes the international shipping costs for returns are much higher than the product value. So generally, if your customer receives a damaged, defective, or wrong product, or if the package is lost, we will provide a refund or reissue on a case-by-case basis without the customer sending the product back. Provided that these product problems were caused by our fault.
The way we work is actually very simple, and you can easily start working with us as follows:
• You connect your store with SourcinBox and import products from SourcinBox to your store. If you can't find the product you want, just tell your customer manager and he/ she will source new products for you.
• You start selling and your customers place orders in your store and those orders are automatically synced to SourcinBox.
• You place those orders in bulk on SourcinBox (which means purchasing products from us). After we receive your orders, we will ship the corresponding products directly to your customers.
We also have many more services waiting for your exploration, such as private label customization, product photography, free warehousing, etc. If you are ready to start and wondering how to use SourcinBox, you can refer to our blog tutorial first, and of course, you can feel free to contact us to help you with your problems.
Let's get back to the point, Brazil is indeed a potential dropshipping market. National dropshipping may be a more suitable solution for Brazilian dropshipping beginners, but it is not the only choice for dropshipping in Brazil.
Whether it is to expand product categories and markets or develop into a more professional dropshipping business, you may require a more professional and international-oriented dropshipping supplier.
With the growth of dropshipping and international logistics, there will be more international or national dropshipping suppliers in the future to provide high-quality services and solutions for dropshipping Brazil.