Domestic Dropshipping: The Opportunity to Build an E-commerce Business in Brazil

Domestic Dropshipping: An Opportunity for Growth in Brazilian E-commerce

In recent years, the e-commerce market in Brazil has gone through significant changes, driven by a series of economic and tax factors that have altered how Brazilian consumers shop.

With higher import taxes, a stronger U.S. dollar and the declining appeal of international purchases, domestic dropshipping has become a promising option for entrepreneurs who want to sell online without having to keep their own inventory.

This strategy, which has been gaining traction among digital entrepreneurs, lets store owners offer products with more competitive prices, faster delivery, and more affordable shipping, meeting growing consumer demand for quality domestic products  

The Impact of New Taxes on International Purchases: What Changed? 📉

In August 2024, a significant tax measure was implemented in Brazil.

Brazil’s National Congress approved a 20% tax on purchases of up to $50 made on online platforms, a measure popularly known as the “blouse tax.”

Although the measure was controversial, the impact was direct: international purchases fell 11% compared with the previous year, even though tax revenue increased considerably.

Another Tax Increase: What to Expect in 2025? 🧾

In April 2025, a new increase in taxes is set to drive up the cost of international purchases.

The state sales tax known as ICMS (Imposto sobre Circulação de Mercadorias e Serviços) will rise to 20% in several states, which, combined with the import tax, could result in a total tax burden of 60% on purchases made on platforms such as Shein, Shopee and AliExpress.

This puts imported products at a disadvantage, making them significantly more expensive.

This scenario of rising costs for international purchases favors the domestic market, creating a golden opportunity for Brazilian entrepreneurs looking for more affordable and competitive alternatives. 

The Strong Dollar and Its Impact on Imported Product Prices 📊

In addition to taxes, another factor that has made imported products more expensive is fluctuation in the U.S. dollar exchange rate.

A weaker local currency directly affects the cost of products from overseas, impacting the final price for Brazilian consumers.

As a result, many shoppers have been turning to domestic alternatives that are more affordable and competitive, boosting sales in local retail.

The Growth of Domestic Retail: Fashion Chains Feel the Impact 📈

Major fashionchains in Brazil, such as C&A, Renner and Riachuelo, have already seen the impact of these changes, recording strong sales growth in 2024.

According to data from the Brazilian Institute of Geography and Statistics (IBGE), the country’s apparel sector grew 6%, showing a trend of growing strength in the domestic market and consumers’ increasing preference for domestic products. 

Domestic Dropshipping: The Solution for Digital Entrepreneurs 📦

Against this backdrop, domestic dropshipping is emerging as an affordable and profitable strategy for entrepreneurs who want to break into e-commerce without the challenges of keeping a physical inventory of products.

The dropshipping model lets entrepreneurs sell products without having to buy them in advance or manage inventory.

Instead, the product is shipped directly from the supplier to the consumer, making the process more efficient and cost-effective.

Advantages of Working with Domestic Suppliers

These advantages are essential for winning over consumers who used to buy from international platforms and are now looking for alternatives in the domestic market.

The Role of Dropi: Making Domestic Dropshipping Easier 💻

Bruno Brito, CEO of Empreender and co-founder of Dropi, a Brazilian platform that connects store owners with domestic suppliers to make dropshipping easier, highlights the importance of this strategy in the current context. In his words:

We’ve always aimed to encourage more Brazilians to start businesses, and we’ve developed several apps that help with that, with dropshipping being one of the simplest and most practical ways to get started.

After all, while people spend their lives selling their hours, those who make real money sell products. 

Dropi is an example of a tool that is making life easier for anyone who wants to get started in domestic e-commerce.

The platform connects entrepreneurs with domestic suppliers, enabling the creation of low-cost online storeswith quality products and fast delivery.

The Adoption of Dropshipping by Small and Medium-Sized Businesses 📊

Dropshipping isn’t a strategy just for large entrepreneurs or international businesses.

According to the Logistics in Brazilian E-commerce Surveyby the Brazilian Electronic Commerce Association (ABCOMM), about 40% of small and medium-sized businesses in Brazil use the dropshippingmodel, either partially or fully.

The estimate is that by 2030, this number will reach 80%, reflecting the growing success of this strategy among SMBs.

Advantages of Domestic Dropshipping: Why Invest Now? 💼

The current state of domestic e-commerce favors the adoption of dropshipping for several reasons:

• Low startup cost: Since they don’t need to keep their own inventory, entrepreneurs can launch their stores with an upfront investment that is much lower.
• Wide variety of niches: The model lets you work with many different market niches, serving different audiences and preferences.
• Easier logistics: With suppliers in Brazil, delivery times are shorter, and shipping costs are lower, which is a big advantage over international purchases.

These advantages make domestic dropshipping an excellent opportunity for anyone who wants to start a business in Brazil, especially at a time when imported products are becoming increasingly expensive due to high taxes and an unstable exchange rate.

The Role of Platforms Like Dropi in the Growth of Domestic E-commerce 📈

Dropi has been one of the pioneers of domestic dropshipping, providing efficient tools to connect store owners with Brazilian suppliers. According to Bruno Brito, the platform plays a crucial role in this new landscape:

We were pioneers in domestic dropshipping, and we believe this is the best time for anyone who wants to start an online business. We also share free knowledge on our channels, such as YouTube and social media.

This free education offered by Dropi is an important differentiator , because it gives beginner entrepreneurs access to valuable tips on how to build successful stores, understand e-commerce and improve their marketing strategies.

The Future of Domestic E-commerce and the Expansion of Dropshipping 📦

The future of e-commerce in Brazil looks promising, with the growth of domestic dropshipping playing a vital role.

As demand for local products grows and import taxes become more burdensome, the dropshipping model presents itself as an advantageous alternative for anyone who wants to get started in the digital market.

Entrepreneurs who adopt domestic dropshipping will have the opportunity to:

• Take advantage of the growing market for local products.
• Reduce operating costs by eliminating physical inventory.
• Meet the needs of Brazilian consumers quickly and effectively.

In short, domestic dropshipping isn’t just a trend, but a long-term strategy that could be the key to success in the e-commerce market. 

Conclusion: The Perfect Time to Invest in Domestic E-commerce 🚀

The current state of Brazilian e-commerce, with high import taxes and a strong dollar, makes domestic dropshipping one of the best options for entrepreneurs looking to offer quality products at competitive prices with fast delivery.

With platforms like Dropi streamlining the process, now is the ideal time to start your journey in domestic e-commerce, taking advantage of the opportunities and challenges of the local market.

Don’t waste any time — invest in dropshipping and be part of the revolution in Brazilian digital commerce.