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Dropshipping in South Africa | What can go wrong?

Take our FREE Takealot seller course today here: https://skillspace.co.za/home/course/takealot-seller-course/51Dropshipping is a business model where a seller sells a product without holding any inventory. The model has been holding popularity for a while in South Africa. However, most dropshippers 'drop their business' in South Africa after 6 months to a year. Why? In this article, let's understand dropshipping in South Africa and the precautions you should take to make your dropshipping business successful.What is Dropshipping in South Africa?In simple words, dropshipping in South Africa is a middleman business. As a dropshipper, you connect a warehouse directly to the demand in the market. This way, you eliminate the traditional upfront costs of starting a business.A dropshipper usually has an online website where they display the products and take orders. It is important to be transparent about prices as, even though you are sourcing a product from a warehouse or a supplier, you will still have to pay some extra charges, such as transport and handling fees, customs fees (if ordering from overseas), taxes, and so on. Therefore, even if sourcing a product directly from a warehouse should be cheaper than the retail price, these extra charges add up to the cost. This is one of the reasons why dropshippers actually earn less profit on their sales.So is dropshipping really profitable? It can be if you find the right customers and the right supplier for the products you want to sell.The Problems with Dropshipping in South AfricaIn most cases, the cons weigh more than the pros when it comes to dropshipping. Why? Because it is difficult to find the right niche for your ideas. Secondly, most entrepreneurs fail to understand that the profit they would make via dropshipping would really be insignificant in the beginning. Dropshipping is a great model, but most expect to get rich in a shorter amount of time. This is primarily why many dropshippers get demotivated to keep up with the business, or even begin to cut corners to earn more profit.Like any other business, regardless of its low upfront costs, Dropshipping business also requires dedication and passion to make it successful. Yes, you can do this business from within your comfort space, does not mean it is an easy business.The two main problems you face in dropshipping are logistics and customer service. As a dropshipper, you are not in control of how the product will be delivered. It is usually done by your supplier. Secondly, as you are not involved in the actual operation of dealing with the product, you cannot really guarantee the product quality by yourself. So in this case, you may take a longer time to resolve customer complaints, which really hampers your business as well.I understand the problems, what should I do?As a dropshipper, it is important to deliver good quality products and good customer service. These are the two pillars of making your dropshipping business successful in South Africa.The idea of your dropshipping business begins with understanding the niche, market demands, and competition. If the competition is too saturated, you need to rethink your plan. Otherwise, once you figure this out, your next move is to find the right supplier. In South Africa, we highly encourage you to find local suppliers to streamline logistics and shipping costs. One way you can do so is by finding best-selling products on Takealot. Finding international suppliers from platforms like AliExpress may incur additional costs like customs, currency differences, and taxes.Once you find the right supplier that is trustworthy to your standards, you may start dropshipping via your website. Remember, you are just a middleman, so you have no control over product manufacturing, quality, or delivery. This is exactly why finding the right supplier is the most crucial part of dropshipping.To sum upDropshipping in South Africa takes patience, determination and passion. To get your dropshipping business right, you should do the following.Find the right supplier, best if it is a South African supplier.No cutting corners on the customer service. Do your best to resolve your customers' doubts and grievances.Make sure your website is up-to-date and visually good.Dropshipping may look easy, but finding the right customers and suppliers is the key to making it successful. Are you interested in starting your own dropshipping business? It's completely legal in South Africa. Skill Space is currently working on a course to help aspiring dropshippers in South Africa. Meanwhile, if you have any questions, feel free to reach to us via the message tab and we can help you out.

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Published - Mon, 16-Oct-2023

Created by - Skill Space

Dropshipping in South Africa - Is it viable in 2024?

South Africa presents a good opportunity to start a dropshipping business in certain popular niches, such as electronics, apparel, and car accessories. In this article, we'll discuss whether dropshipping is viable in South Africa in 2024. Let us begin.What is a Dropshipping Business?A dropshipping business is an order fulfilment business model where the seller does not keep any inventory on hand. Instead, they utilise their connections with the suppliers to fulfil the orders. This is how it works.A dropshipper has an online e-commerce website where they sell the products. When a customer places an order through the website, the dropshipper forwards the order to their supplier. Then their supplier handles the order fulfilment process. The customer then receives their order. The product may include customised packaging or your branding on the product as well.How does Dropshipping work in South Africa?The most common dropshipping model is Chinese Suppliers processing the order you receive on your website in South Africa. Chinese giant e-commerce websites like AliExpress or CJDropshipping allow you to set up a dropshipping business easily.This includes your e-commerce website, either made with WooCommerce or Shopify, and plugins that allow you to import dropshipping products. The process is simple. Install the necessary dropshipping plugin on your website and import the products you wish to sell. You can also check supplier ratings and product ratings before you choose to import such products, allowing you control over choosing quality suppliers and products.You might have heard that these Chinese dropshipping models are obsolete in South Africa due to high shipping fees and long delivery times. But with solutions like Airpool, you can make the process significantly easier for you.Is Dropshipping still viable in South Africa in 2024?Dropshipping has certainly become a viable business model, especially in the post-pandemic recovery era. You can most certainly try your hand at running a dropshipping business in South Africa in 2024. While it is not for everyone, dropshipping can be your calling if you can identify trends and trendy demands in the market.Dropshipping is a business that mainly runs on trendy products. TikTok and other social media platforms are excellent sources for such research. For suppliers, you can use traditional Chinese sites from Alibaba or AliExpress. Or, you can consider using South African dropshipping suppliers like DropStore or Shopstar.Choosing a South African dropshipping store can significantly reduce order fulfilment times. Besides, Dropstore and Shopstar both have plans that may provide you with a web design as well. With them, you can start your business in mere hours at reasonable monthly costs.ConclusionSouth Africa has a favourable environment to start a dropshipping business. However, you must understand the niches and the trends that sell well in South Africa. The flexibility of a dropshipping business also allows you to change or offer new products as you move forward. Use this to your advantage to experiment with various niches to understand what would work for you.Skill Space is developing a full-fledged course on Dropshipping. It will be available soon, so stay tuned! Meanwhile, if you have any questions, feel free to drop a message to us and we will get back to you.

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Published - Tue, 02-Apr-2024

Created by - Skill Space

How much do Dropshippers make in South Africa?

Dropshipping is currently one of the popular business models, especially amongst youngsters in 2024. The model consists of connecting suppliers with buyers through your business. Here, your business acts as a middleman, helping suppliers sell their products via your online platform to an audience you already know. Your profit? The middleman cut. Your supplier takes care of the order fulfilment, packaging and everything else. So, how do these dropshippers make in South Africa?How much do Dropshippers make in South Africa?If you devour the internet to find an exact answer, you may be confused. And rightfully so.There are dropshipper gurus telling you how they found success just within a week or two. Then there are some humble personalities talking about how much a dropshipper can make. The problem is, if you are new in the dropshipping game, you get confused about whom to trust. Dropshipping is currently a trending business model, and when there's a trend, there are 'fake' gurus claiming to make some 'real' profit to accumulate views. Or worse, selling you a fake or mediocre course about dropshipping.It all boils down to your best judgment on whom you want to trust or follow for advice.Right, back to the burning question: how much do dropshippers make in South Africa?From a realistic perspective, it would be safe to assume that dropshippers make about R5000 to R10000 a week in South Africa. Despite what gurus say—'dream big' and whatnot—it is important to keep your feet on the ground and set realistic goals. Of course, your goals may differ depending on the niche you select. For example, if you are selling in a popular and expensive niche, you should be expecting better profits.If Dropshipping is so Profitable, then why doesn't everyone do it?While we want to provide a realistic answer on how much dropshippers make in South Africa, the answer would not be complete without answering this question. Dropshipping, if done right, can be profitable. However, let's see what factors may prevent you from achieving that success.Competition. Dropshipping is a trendy business model that focuses on selling trendy products. Usually, these trends emerge from either Instagram or TikTok, both being massively popular in South Africa. When there's a trendy product, there's a massive competition. And if you are not ahead of the competition, then you already lose the edge. A dropshipper, with some luck, is keen on identifying what would become the next trend and focuses on capitalising on it. On the contrary, finding a less competitive niche is also difficult as there are often products that have little to no demand in the market.No Brand Identity. A dropshipping store is often a temporary brand that focuses on selling one to five top trendy products. For example, take a look at this dropshipping store selling a trendy product. This is what most of the dropshipping stores look like. Anyway, if you indulge in dropshipping as a business selling regular products, chances are your customers are going to ignore your business. The bottom line here is that getting that one chance to prove your dropshipping business is highly difficult due to competition and having no identity as a brand.Lack of Customer Service. This is more of an aftersale service aspect, but also the most difficult one. As a dropshipper, you have no control over product quality or order fulfilment. This solely depends on the trust between your supplier and you. Finding a reliable supplier is important in case your customers have issues with your products; which is technically not your fault, but your customers are going to see it that way. This makes providing satisfying customer service tedious and nerve-wracking.It's not all about the money, but most dropshippers fail to understand this. They are often under the impression that they will list certain products, advertise them on popular platforms, make sales, and... Profit! They look at this business model as an easy way of making money. But if you understand the problems above, you will understand the folly and naivety of this logic.Final WordsSo, is dropshipping really for you? This depends on how you decide to approach the dropshipping business model. And how does a dropshipper make in South Africa? As mentioned in the article above, it would be safe to assume an amount between R5000 to R10000 a week or a month. Do not expect quick profits and often consider being wary of online gurus telling you how they found 'golden eggs' just within 2-3 weeks of dropshipping. Dropshipping is not as easy as it sounds on paper and requires learning, proper research, and a proper customer service system. And like all businesses, you also need a little bit of luck to get the success you dream of.In the next article, we will talk about some popular Dropshipping suppliers in South Africa.On the other hand, if you aim to become a Takealot Seller in South Africa, Skill Space has an excellent Takealot Seller Course for you. The course provides in-depth and step-by-step practical knowledge on how you can successfully become a Takealot Seller in South Africa. The course is free for a limited time, so hurry up and take advantage of the offer!If you have any further queries, please don't hesitate to connect with us via our website.

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Published - Fri, 28-Jun-2024

Created by - Skill Space

Dropshipping Suppliers in South Africa in 2024

In the previous article, we strived to find an answer to the burning question: how much do dropshippers earn in South Africa? Now, to earn via your dropshipping business, you need to find the right niche and suppliers. In this article, let's explore some of the popular and trustworthy dropshipping suppliers in South Africa in 2024.Trustworthy Dropshipping Suppliers in South Africa in 2024Before we begin, we are not going to mention popular dropshipping suppliers like AliExpress. While AliExpress is a doable option, there are certain issues with using a Chinese supplier.The very first is the delivery time. When people order online, they usually expect an order to arrive in 7-15 days. This is not the case with AliExpress regarding delivering to South Africa. The average delivery time between AliExpress and South Africa is about 29 to 32 days, which is not optimal for your business. The second thing is the delivery cost. If you opt for the EMS option, it is too expensive to generate any actual profit barely. On the other hand, SAPO may be an option but many dropshippers in South Africa have complained about their unreliable tracking and delivery service.There is an alternative to this called Airpool. it is a special delivery service formed by a group of South African entrepreneurs that streamlines the process of importing products from China. We recommend you check their website for more information.Meanwhile, let us talk about some reliable South African dropshipping alternatives.DropStoreWhen we talk about Dropshipping, Dropstore is the first word on the tongue in South Africa. Dropstore is the largest hub for Dropshippers in South Africa to source products locally. Dropship is a "freemium" dropshipping service with premium plans starting from R199 per month. If you are new to dropshipping, you can consider putting some skin in the game with Dropstore's starter plan.We encourage you to go with dropstore if you are new in the game and do not know where to start. Start Dropshipping in South Africa with Dropstore Today!Cosmic PetsThere is always a high demand for pet products in South Africa. Despite the high competition, there is always a market to explore in the pet niche. In South Africa, Cosmic Pets can help you source and deliver pet-related products. Established in 2006, Cosmic Pet has strived to be a trusted supplier of collapsible pet carriers, cat trees, toys, pet pens, and more. They claim to have more than 400 throughout South Africa.They are a wholesale distribution company dealing exclusively with pet supply stores, vet clinics and pet care professionals. If the niche interests you, you may choose Cosmic Pet Products as your dropshipping supplier.ShopStarShopStar is a for South Africans, by South African drop shipping service. Sourcing from plenty of local suppliers, ShopStar can provide you with a diverse set of products in various niches to jumpstart your dropshipping store in South Africa.Compared to DropStore, the premium plans are a bit cheaper. However, there is no free option. For more information on the plans, check out the ShopStar website.MantalityMantality is a big supplier in South Africa that focuses on selling products specifically targeted at the male audience. From skincare and grooming products to gadgets, gym supplements or even aesthetic products like fragrances or hair-care products, Mantality has it all.As a wholesaler in South Africa, Mantality also supports the dropshipping business model, thus helping your business thrive if you want to deal with niches related to men's products. For more information on the dropshipping business model price, contact the supplier on their website.Courier GuyUsually, your dropshipping supplier manages the logistics aspect of the products you sell. However, if you prefer using a custom delivery service for the order fulfilment process, Courier Guy is undoubtedly a reliable delivery partner in South Africa.We have talked about Courier Guy in detail in our Takealot Seller Course. The course is FREE for a limited time. We highly recommend giving it a go especially if you plan to sell on Takealot. Takealot also allows a dropshipping business model with some restrictions. For example, you will have to use Takealot branding for your products for dropshipping.Final WordsIn this article, we have listed the 4 most trustworthy dropshipping suppliers in South Africa for 2024. Dropshipping is a business model where you do not have to put too much skin in the game. It reduces the risk of loss by eliminating the inventory investment and logistics aspect from the model. However, the benefits do come with downsides as well. We have explained more about it in our 'How much do Dropshippers make in South Africa?' article.If you have any questions regarding dropshipping or our Takealot Seller Course, please feel free to reach out to us.

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Published - Tue, 02-Jul-2024

Created by - Saket Patil

How to Start a Dropshipping Business in South Africa in 2024?

Starting a Dropshipping Business in South Africa can be a little tricky. Unlike Western countries like the US or the UK, South Africa faces issues when it comes to delivery times from China. As you are aware, dropshippers almost always use Chinese suppliers to import and sell trendy products, all without keeping any inventory on hand. So, would a dropshipping business model work in South Africa? Can you really start a dropshipping business in South Africa in 2024? Let's find out.How do you Start a Dropshipping Business in South Africa?It is absolutely possible to start a dropshipping business in South Africa in 2024, despite the challenges you may face. In 2024, the competition is high and many popular niches are saturated with tons of suppliers, tons of retailers, and of course, plenty of knock-offs.So, how do you dominate this market? The answer is, you don't. But this is where it gets tricky.One solid piece of advice that almost always works for a dropshipping business is to focus on untapped, unfocused niches. This is the most difficult part of the process. Once you find the right niche for your business, however, everything else is pretty straightforward.How do I find the Right Niche for my Dropshipping Business?Research, research, and more research!Thanks to the internet, research is almost free and anybody can do it. First of all, decide on an umbrella niche you would want to research. This will also help you identify your target audience and your competition.Under your umbrella niche, research what kind of products have a high demand. Unless there's a potential market you can tap into with these high-demand products, you will automatically scratch them off your list. Now, your goal is to find a certain niche that has a high demand but low competition in the market. This is where understanding trends comes in handy. How do you do that? Keyword and trend research, of course.We highly recommend tools like Google Keyword Research, Google Trends, Facebook Audience Insights, and Keywords Everywhere. Google Keyword Research requires a Google Ads account.Use these tools to specify your keyword research. Use long-tailed keywords to explore specific niches and your competition and decide on your niche accordingly. Take a deep dive to find the right niche for your dropshipping business.If you can see that a certain product is about to get trendy, you can capitalise on it. The key here is to stay ahead of the competition."Do your keyword and trend research, try to find a high-demand low-competition market to decide on your niche."I got my Niche. What Now?If you have found a perfect niche for your business, you have crossed the biggest obstacle. However, it's not over yet. Your next step is to find the right suppliers for your niche.We have mentioned a few Dropshipping Suppliers in South Africa in 2024 in another article. Make sure to give it a read.However, if you have an obscure niche, you may have a hard time finding the right supplier. You may have to expand your supplier search outside of South Africa. In this case, be aware of the market demand, delivery time and costs, and product quality.Once you get a supplier, order a few samples for quality check. Remember, as a dropshipper, you have little to no control over product quality and logistics. Thus a background check will add that extra layer of relief for your business. The trust between a dropshipper and a supplier is crucial if you want the business to thrive."Finding the right supplier is the key to making your dropshipping business happen. Before finalising a supplier, order some product samples from them. Do some quality checks as you have little to no control over product quality, packaging, and shipping."You must get an E-Commerce WebsiteNow, you need a medium to connect your suppliers directly to your customers. The answer is an E-Commerce Website. Getting a website for your dropshipping business is a relatively easy task.In 2024, you can simply build a store with Shopify with a monthly fee or you can get a customised store completely built from scratch within South Africa with the help of a web designer.Some dropshipping platforms in South Africa such as DropStore or ShopStar also provide you a web design along with a few dropshipping products at a monthly cost.What option you would want to choose depends on how you want to represent yourself as a dropshipping business. For a fully personalised and customised website, we would highly recommend hiring a web designer to do this job for you."Hire a web designer to get a fully personalised dropshipping store that resonates with your branding. Or you can get premade websites from your dropshipping platform (if available) or build a website with Shopify."Now, let's attract your audienceA dropshipping business thrives on trendy products. In such cases, what's better than a social media platform to advertise your business?In South Africa, Meta Products such as WhatsApp, Instagram, and Facebook are the most popular. You may utilise their extensive and intuitive advertising tools to reach out to a specific set of audiences that resonates with your business.Also, you can use these social media platforms to provide customer service.Apart from that, you may also utilise Google Ads to further market the enticing products your dropshipping business has to offer.Marketing can be a tricky affair. If you are confused about marketing, then instead of shooting arrows in the dark, you can hire a marketing team to help your business. A marketing team can streamline your marketing strategy, attracting the right customers to your business, thus effectively helping your revenue strategies."Marketing is the key to letting others hear about your business. If you are confused about how to market your business, consider hiring a marketing team for your business. Invest in the right people to avoid the risk of unexpected financial losses."Drawbacks of Being a Dropshipper in South AfricaA dropshipping business is an easy business model that can help you understand a market without having to put your skin in the game.However, that comes at a cost.As a dropshipper, you are also competing with local retail markets. These retail businesses have already invested in a stock that they need to sell. On the other hand, a dropshipper does not invest in anything.Now, if your direct competition is a retail store, you may find it hard to compete as a dropshipper. Since you do not invest in a stock, it translates as 'you are not as serious about your business as these retail stores' for some. Furthermore, if doing business with you means angering their retail partners, a supplier may feel reluctant to conduct business with you.This makes finding a supplier challenging. This also marks the utmost importance of finding a niche that would not directly compete with local retail businesses. Also, as mentioned previously, the long delivery times and high costs are often not worth it if you choose a Chinese supplier.However, there's a workaround to reduce costs and delivery time from ordering from China. Airpool is a South African service that consolidates various deliveries for South Africa and ships them as one package. We highly recommend checking them out for more information.In ConclusionDropshipping in South Africa in 2024 is a totally doable option. The key is to understand the South African market competition and the dropshipping game. You may use a dropshipping business model to get a better understanding of the market or start a full-fledged dropshipping business. As long as the pros outweigh the cons, you should consider this low-cost investment business model.Skill Space is currently developing a full-fledged course on how you can start a dropshipping business in South Africa. Meanwhile, did you know that you can also dropship on Takealot? By becoming a Takealot Seller in South Africa, you can also do dropshipping. The catch is that Takealot will use their branding as packaging before they deliver your products.To find out how you can become a Takealot Seller, we highly recommend our Takealot Seller Course which is FREE for a limited time. Don't miss out and register with us today to take the course.If you have any questions, please feel free to reach out to us.

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Published - Fri, 12-Jul-2024