Dropshipping is rapidly replacing wholesale as a preferred business model in Brazil. Dropshipping is a simple way for newcomers to the internet marketplace to start making money. A dropshipping business in Brazil can be launched with minimal investment, but there are some important considerations you should keep in mind before getting started. Let’s have a look at:
If you’ve read our primer on dropshipping on AliExpress, you already know what it is and how it works. It’s the cutting edge of business, but only for the uninitiated. Therefore, let’s start by defining dropshipping before diving into the essentials of dropshipping in Brazil.
What Is Dropshipping
How does dropshipping work? I’d like to give you a short answer: dropshipping is a less risky and more profitable way to do business when you want to sell things online.
Dropshipping lets you start an online business without having to deal with stock or pay a lot of money up front. With great AliExpress dropshipping solutions like Dropship Corporation you can automatically sync orders and place 100s of orders with just one click.
In a nutshell, dropshipping is a business model that doesn’t require a lot of your time or money, so you can use marketing strategies to grow your business. Go here to find out more if you are still confused.
Why Should You Start a Dropshipping Business in Brazil?
As I said above, dropshipping can make you money. But why would you want to open a dropshipping business in Brazil? Let’s figure it out.
E-commerce WIKI Organization says that about 38% of the people in Brazil always buy what they want online. So, it’s a better idea to start a dropshipping business in Brazil. No matter if you want to start your own business or make money on the side, dropshipping in Brazil is the least risky business model and can make you a lot of money.
With dropshipping, you can spend more time marketing your business and responding to customer emails. You also have less work to do because you don’t have to keep any inventory, buy a lot of products, or package and ship them. Also, you don’t have to spend a lot of money right away.
How to Start Dropshipping in Brazil: Key Points
It might be easy and profitable to start dropshipping. But if you want to start dropshipping in Brazil, you should know these 5 tips. Please look at them one by one and use them in your online dropshipping business.
Use a Dropshipping Tool or Solution
D Your dropshipping business needs tools or solutions. With them, dropshipping will be a lot easier for you because you only have to do a few things to start and run your online dropshipping business.
I’m going to use Dropship Corporation as an example to show how useful they are. The best dropshipping app on Shopify can help you improve your Brazil-based dropshipping business. Let’s take a look:
Supplier finder: No matter where you want to start your dropshipping business, suppliers are important to your success. With one click, Dropship Corporation can help you find better and cheaper suppliers for the things you sell.
Bulk Order: If you want to take care of a lot of orders at once, Bulk Order can help. With it, you can send AliExpress 100s of orders in a few seconds.
Shipping Settings: This is a good way to get more positive feedback from customers. To insure the shipment, you can choose a shipping method ahead of time based on where the order is going.
Automatic Pricing: You can make money off of AliExpress products by adding a margin to them. Since you have more than one supplier, you need to change the price from time to time. It might take a long time to do it by hand. With Dropship Corporation automatic pricing, you can save time by having it automatically apply some pricing rules to all the new products you import
.You can also use Variants Mapping, Stock Management, and Multiple Store Management features. Then, you can quickly start a successful dropshipping store. Go here to learn more about what it can do.
Brazil’s market is huge
Massive Brazil Market
The number of Brazilians who buy things online is growing quickly. Statista reports that in 2013, 31.27 million Brazilians bought things online. Also, almost 43 million people in Brazil bought something online at least once in 2020. Also, Brazil is the largest Internet market in Latin America with nearly 150 million users. It is ranked fourth in the world.
These are the things that Brazilians spend the most money on when they buy them online:
- Electronics Appliances
- Fashion Cosmetics
- Products for beauty
- Appliances for the home
- Home decor Pharmaceutical products
- Things to clean with
- Safety equipment Travel services
Analysts also think that travel services made up about one-third of all e-commerce sales in Brazil in 2015. Brazilians also like it when stores and websites offer discounts for groups.
Problems that come up with dropshipping in Brazil
But even though the benefits of dropshipping are clear, you still need to be aware of a few problems when you start. Let’s take a look and start getting ready:
First of all, Brazilians like to shop online, but most of the time they can only buy from Brazilian companies. This is because infrastructure and government rules in Brazil make it hard to do dropshipping.
Shipping is the next step. On the one hand, it’s hard to get things to Brazil. Brazil’s postal service is very shaky and slow. A package might not arrive for three months, and it often gets lost. On the other hand, international couriers are not always the best option because they may charge up to 100% of the shipping cost.
The package could be held up in customs for 30 to 180 days, which is another big problem. Why? To back up different products, you need to have the right documentation. For instance, the National Health Inspection Agency of Brazil will be in charge of keeping an eye on the shipping of food, health products, cosmetics, and medicines.
TIP: The good news is that dropshippers can do it much faster with the help of the Chinese Postal Service ePacket, which is the big change in this case. People say that a package can take an average of 25 days to get from China to Brazil.
Why begin now?
The market for online shopping is growing quickly. Last year, people spent almost USD 500 billion on things they bought online. It seems like a lot. But experts say that e-commerce sales will reach USD 4.5 trillion by the year 2021.
It’s not surprising that countries that are good at using the Internet, like the UK, the US, and South Korea, were far ahead in sales last year. The amazing thing about this is that Brazil broke so many records. It is now one of the e-commerce markets with the fastest growth in the world.
Many dropshippers have tried to sell goods in Brazil in the past. They didn’t succeed because the mail service was unreliable and took too long. But, as I said above, this is no longer the case because of new policies. So, if you have an online store but have never had a customer from Brazil, it’s time to make a change and start.
Dropshipping is the practise of selling goods without keeping them in stock.
Advantages of dropshipping
Lastly, I want to say that dropshipping can bring you many benefits, even if you face some problems and need to make changes right now. Let’s see what they have in common:
If you want to make money through e-commerce, dropshipping can be your first choice. Also, dropshipping solutions make it much easier to start a successful dropshipping store. The important thing is to make sure you choose the right products and suppliers you can trust. There are two main benefits to dropshipping: self-fulfillment and third-party logistics.
For self-fulfillment, you (the business or entrepreneur) have to take care of everything. In a nutshell, with self-fulfillment, you have to buy your own inventory, rent your own warehouse space, and pack your own shipments.
TIP: Self-fulfillment can be expensive, but it gives you more control over the process.
You can use a partner company to fulfil orders for you, but you still have to buy the product and store it in a third-party warehouse until a customer places an order. You still have to pay for inventory and logistics services from a third party, but it saves you a lot of time.
But with dropshipping, all you have to do is find the products you want to sell and add them to your site. The rest will be taken care of by a dropshipping supplier with whom you work. It’s a great way for small business owners who are just getting started in the e-commerce market. You can save money by not paying to store or keep inventory. You can save time because the suppliers do everything after the customer places the order. Also, you can add products or change them in any way you want at any time.
You hope to be successful when you start your dropshipping business in Brazil. This post will show you how to start a successful dropshipping business in Brazil.
For dropshipping to work in Brazil, you need a dropshipping tool like Dropship Corporation to help you. You also need to know what the pros and cons of dropshipping are so you can be ready for problems and improve your shipping services.