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Is Dropshipping to Brazil Worth It? Read This First!

Blog, eCommerce Insights | September 21, 2021

You might be dreaming about a laptop lifestyle and considering becoming one of the many retail entrepreneurs who have created a successful dropshipping business.

Whether you have a Shopify or other eCommerce store, dropshipping could help you rub shoulders with those earning up to a six-figure income.

 

You might be wondering which countries are best for dropshipping, or maybe you’ve already considered dropshipping to Brazil and enjoying your part of the estimated revenues of 5.4 trillion US dollars in 2022.

 

So for those still wondering if dropshipping to Brazil is worth it, our helpful article will give you the definitive answer!

 

The advantages of dropshipping to Brazil include 48% of online purchases on mobile, projected revenue of $5.4 trillion in 2022 with limited competition. With most of Brazil’s online purchases made from China, and high internet penetration, it’s worth dropshipping to Brazil.

 

Ok so with the mini takeaway nailed, those wondering if dropshipping to Brazil is worth it, let’s first start by exploring a little more about why it might be a great dropshipping strategy to include Brazil in your next marketing plan.

 

Why should I dropship to Brazil?

So why should you dropship to Brazil? Why is it worth adding Brazil to your new dropshipping venture or expansion plans?

 

According to Statista, experts in business statistics and projections, Brazil should be on the top of your next marketing list.

 

With growing internet penetration, and with many of the sales reported in 2021, it seems many dropshippers have already learned the value of this South American country.

 

Here are some top reasons to dropship to Brazil with some important and persuasive facts from the above Statista report.

 

  • Brazil’s largest market segment is Electronics & Media which will see a market volume of US$6.93 billion by the end of 2021.

 

  • With a projected market volume of US$1,542 billion by the end of 2021, most retail revenue from Brazil is generated in China

 

  • The average revenue per user (abbreviated to ARPU) is expected to amount to US$227.23 by the end of 2021

 

  • By the end of 2021, 97% of total eCommerce purchases in Brazil are expected to be domestic.

Pandemic impact

Although the worldwide pandemic hit bricks and mortar stores as much in Brazil as the rest of the world, this could have major benefits for anyone wondering if dropshipping to Brazil is worth it.

 

As across the globe, many Brazilians began to spend online for the first time, which would mean dropshippers could benefit from dropshipping to Brazil.

 

Reuters, the worldwide news agency stated that by the third week in March of 2020, some websites saw an increase of up to 180% in their checkouts.

 

“across the globe, many Brazilians began

to spend online for the first time”

 

Internet population

One of the chief reasons for dropshipping to Brazil is internet penetration.

 

According to a recent Brazil eCommerce report, One-hundred percent of Brazilians are covered by cellular networks and 94 percent have 3G network coverage. Alongside which back in 2020, 14 percent of all products were purchased on a smartphone or laptop.

 

It seems with the rise of digital wallets, consumers in Brazil are equally as happy shopping online as other counterparts across the globe.

 

However, it’s probably worth noting that most Brazilians used to prefer to make online purchases, including from stores that dropship via laptops. But according to a recent eMarketer report, nearly half of all retail eCommerce sales during 2020 took place on a mobile device.

 

Less competitive

With many dropshippers avoiding Brazil as a potential market mainly due to the infrastructure and historic shipping difficulties outlined above, Brazil is far less competitive than many of its counterparts.

 

However, with around a whopping 150 million users, Brazil’s Internet market is the number 1 in Latin America alongside ranked fourth in the world on a global scale, it can be a lucrative opportunity for selling winning products with reputable dropshipping agents.

 

Ok so now we’ve looked at some of the best reasons to find the best dropshipping suppliers to Brazil, as a little due diligence, let’s discover if there are any disadvantages of dropshipping to Brazil.

 

Are there any reasons I shouldn’t dropship to Brazil?

With a raft of political and economic crises targeting Brazil in the last few years. Alongside rising unemployment and a high rate of inflation, it’s not surprising to think that Brazil isn’t a good place to begin your next dropshipping marketing strategy.

 

According to Brazil’s National Industry Confederation, 59 percent of Brazilians have experienced a loss in purchasing power.

 

This means many Brazilian consumers are having to adapt to a brand new economic situation.

 

With that said, it doesn’t mean that Brazilians have stopped buying completely. It’s just wise to understand they may be far more cautious.

 

They will be researching products far more thoroughly before deciding to buy a product or a service, they are searching online for more information, alongside vigorously comparing prices and features.

Shipping difficulties

Despite Brazil’s online shopping habits, they’re often contained to buying from Brazilian companies.

 

That’s because historically dropshipping in Brazil has had a few challenges involving infrastructure and government.

 

Shipping to Brazil can be a challenge. The postal service in Brazil is really unstable and slow. A package could take up to three months to arrive and they can often get lost or mislaid.

 

For this reason, The USPS realized there was a need for retailers and customers to send goods faster and cheaper,  so Commercial ePacket was created.

 

This service is for lightweight packages (less than 4.4 pounds and worth less than $400) that ship to and from China.

 

Popular categories

According to Sebrae, fashion represents a large share of Brazilian online spending.

 

Around 33% of sales are in the fashion category, with homewares responsible for close to a fifth of sales.

 

Another very popular area for Brazilian consumers is electronics and computing products.

 

The same source cites fashion as the leading eCommerce category in Brazil, which makes up over a third (33 percent)  of overall sales.

 

It is followed by ‘House and decoration’ products at 19 percent, with ‘ Computing products’ a close 3rd coming in at 12 percent.

 

  • Fashion
  • Home decoration
  • Computing products
  • Accessories
  • Entertainment
  • Beauty

 

What should I consider when dropshipping to Brazil?

Local language

So for those of you considering including Brazil’s customers for your Shopify or other eCommerce stores there are a few things to consider.

 

As with many worldwide customer bases, Brazil consumers will want to see online stores and websites written in their own language.

 

According to experts, Portuguese is the main spoken language for 98% of the population. This is followed by 7% English, 4% Spanish, and 1.5% Hunsrik.

Brazilians love a bargain

As with other global consumers, internet purchases are made by savvy Brazilian shoppers who are looking for a good price along with a quality product.

Shipping time

As we’ve discovered above, it’s worth considering that shipping can be tricky to Brazil, but with the advent of quicker shipping times than ever before, there are better options available.

Local payment methods

As with any other country across the world, to successfully dropship it’s necessary to offer consumers local payment methods.

 

These include:

  • Boleto
  • Pix
  • Bank transfers
  • Cards

 

Dropshipping suppliers

So when you are looking for the best dropshipping suppliers to Brazil, there are a few main contenders:

  • AliExpress
  • Atacadobarato
  • Spocket
  • HyperSKU

And finally…

So we hope that’s given you all the information you need to begin your dropshipping venture to South America’s great capital! Or to grow your already successful Shopify or other ECommerce business by harnessing Brazil’s consumer power.

 

We’ve also covered other potential markets to dropship to in other countries, such as Australia, Singapore, South East Asia, and others, So be sure to check them out.

 

For anyone who would like more information on How To Scale Your Dropshipping Business don’t forget to check out our helpful blog.