Last Updated on July 03, 2020
Dropshipping in Brasil – Why starting now is the correct moment?
The marketplace for eCommerce is increasing quicker than light speed. Consumers spent nearly $500 billion online purchasing products last year.
That sounds like a lot, do you believe? Experts expect sales of eCommerce to reach $4.5 trillion by 2021!
It’s not a shock that web-friendly nations like the United Kingdom, the U.S., and South Korea led the way in purchases last year. What is unexpected is that in record numbers Brazil is increasing its internet expenditure habits. They are now one of the world’s fastest growing eCommerce markets.
In the past, many dropshippers have attempted and failed to sell products in Brazil, because their postal service has been extremely volatile and slow. Now some policy change has changed this situation so if you have an eCommerce shop and never see any Brazilian customers, it’s time to change that and we’ll tell you how.
Dropshipping can be your biggest ally in eCommerce. You must, of course, make sure that you select the right products and use reputable suppliers. Dropshipping has advantages over self-performance as well as logistics from third parties.
The business or entrepreneur handles everything during self-fulfillment. Companies need to purchase inventory, rent warehouse space, and pack their own shipments.
While self-realization gives you the greatest control over your process and is often fast, it’s the most expensive!
Using logistics from third parties implies that you have partnered with a business to meet your instructions. You purchase and store products in the warehouse of the third party until an order is placed. Then the logistics business of a third party handles everything from picking to shipping.
It still costs you in inventory overhead and paying a premium for logistics services from third parties, but you are saving a lot of time.
Dropshipping provides both worlds the best. You will find the products to be sold, upload them to your site, and then the rest will be handled by a dropshipping supplier. You’re sitting back and raising the cash.
This is fantastic for fresh eCommerce tiny businesses. By not paying for stock or storage, you save money. You save time because after placing an order, the dropshipper handles everything.
You have the flexibility to add to or alter your product line whenever you like it.
Brazil’s market is massive
In Brazil, leaps and bounds are increasing the amount of customers purchasing products online. 31.27 million Brazilians purchased internet products in 2013. This number jumped to a whopping 55.15 last year.
Brazil’s Internet market is number 1 in Latin America, with nearly 150 million customers. It is ranked fourth in the globe on a worldwide scale.
- Beauty products
- Household appliances
- Home decor
- Pharmaceutical products
- Cleaning supplies
- Safety equipment
- Travel services
Analysts estimate that travel services accounted for nearly one-third of Brazil’s total eCommerce revenues in 2015. Brazilians also prefer locations and marketplaces offering group discounts.
If you’re thinking, “Okay, so why can’t I hear Brazil’s effective dropshipping?”We will clarify the difficulties faced by distributors.
Dropshipping Challenges in Brazil
Despite Brazil’s internet shopping habits, buying from Brazilian businesses is often contained. That’s because Brazil’s dropshipping has some infrastructure and government problems.
Shipping to Brazil is a challenge in itself. It is really volatile and slow for the postal service in Brazil. It could take a package to arrive for up to three months and often get lost.
On the other hand, global couriers are not always the best choice as they are charged charges that can be as much as 100 percent of the price of shipping.
Either the shipper pays the charges but passes them on to your client or your client has to go to the airport and pay their own customs.
The other significant problem at play is that for anywhere between 30 and 180 days, the package can be kept up at customs. Here are a few reasons for such a long delay:
- Inappropriate documentation
- Anvisa–The Brazilian National Health Surveillance Agency, responsible for supervising the importation of food, health products, cosmetics and medications
- MAPA –The Ministry of Agriculture, Livestock and Supply, responsible for supervising the importation of animal and vegetable products
- InMetro–The Metro National Institute For these reasons, many dropshippers avoid shipping to Brazil. But this is changed by a technique called EuB or ePacket.
- Forbidden Goods/Contraband
What’s altered and why does ePacket work now?
The scenario outlined earlier recently had a large shift. The state will be adding a tax on global packages starting in September. All global mail that arrives through the Post Office in Brazil will be subject to a postal fee of R$15.
This new tax was a nice motive for improving the postal service which has now become really quicker: with the Chinese Postal Service ePacket, the average time of a package from China to Brazil can be 25 days.
There’s a lot of confusion over the word “e-packet” or “ePacket” that we’re going to attempt to clear up.
China is the largest exporter in the world, and the United States is its largest client. The USPS realized that distributors and clients needed to ship products more quickly and cheaply in order to create a Commercial ePacket. This service is shipping to and from China for lightweight packages (less than 4.4 pounds and less than $400).
ChinaPost also has an ePacket Express service. On the same premise it is built as its American counterpart.
Commercial ePacket can be used for shipping to 36 nations. Ships from ePacket express to 39 days. In less time than traditional shipping, both services ship to Brazil.
The shipping technique of the EuB partners with the postal service of Brazil. Packages and parcels are moving faster through the customs process, in 20-30 days. EPacket is now the main technique of shipping to Brazil.
Beat Your Competitors into the Brazilian Market
If you have been thinking about dropshipping in Brazil but have been scared away by horror stories, you don’t have to feel like that again!
All you need to do is re-engineer your process to include Brazil. You are now open to an entirely fresh globe and millions of dollars in eCommerce revenues.
You’re getting a jump on the contest with the foreign eCommerce industry still comparatively untapped in Brazil.
But you did need some assistance, and that’s where we’re coming in.
Yakkyofy is a extensive suite of software to manage and automate all your daily duties of dropshipping. We are a one-stop shop where you can find and import all the dropshipping products you need and automatically satisfy them, no click needed.
With Yakkyofy, you can readily send your orders with ePacket to Brazil and send their tracking numbers to your client without the need for a tap.