How Small Producers Make Selling Online Work

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How small producers sell online without giving up their margin

The hardest part of selling a handmade or artisanal product online is not the website. It is delivery: small volumes, perishable or fragile goods, and courier costs that can exceed the margin on the order. Platforms built around ordering online and collecting in person exist precisely because that arithmetic defeats most small producers.

The model pairs online ordering and payment with collection at the producer, a market or a pick-up point, which removes the courier from the transaction entirely.

Click and collect protects the margin on small orders

A delivery fee that represents a large share of a small basket either destroys the producer’s margin or prices the customer out. Collection removes that cost, and it works particularly well for bakers, butchers, brewers and growers whose customers are local anyway. For a producer whose average order is modest, this is often the difference between online sales being viable and not.

Shared platforms solve discovery that a single producer cannot

One small producer cannot generate enough traffic to justify its own storefront. A platform aggregating many local producers gives each of them access to customers looking for something else, and the cost of that visibility is a commission rather than a marketing budget. The trade-off is the customer relationship sits partly with the platform.

Collection keeps the relationship the product depends on

Customers buying from a specific baker or farmer are partly buying the relationship and the provenance. Collection preserves the contact that a courier removes, which matters commercially because that contact is what produces repeat custom and the willingness to pay above supermarket prices.

Selling local is a positioning choice, not a sentiment

Producers competing against large-scale manufacturers cannot win on price and do not need to. The position is quality, traceability and provenance, and it commands a premium from a specific customer. Any claim made about how a product is made or where it comes from has to be accurate and, where labelling rules apply, consistent with the standards published by the South African Bureau of Standards.

Provincial launches reveal how the economics work

Platforms of this kind start in one or two provinces because the model depends on density: enough producers and enough customers within collection distance of each other. A producer in a low-density area will find the model harder, and should check whether the pick-up points are genuinely convenient for their own customers before committing.

Frequently asked questions

Why is delivery the main obstacle for small producers online?

Because courier costs on small, fragile or perishable orders often exceed the margin, which either prices out the customer or eliminates the producer’s profit.

How does click and collect help?

It removes the courier cost entirely, which makes online selling viable for producers whose average order value is modest and whose customers are local.

Why join a shared platform rather than build your own shop?

A single small producer cannot generate enough traffic alone. A platform supplies discovery in exchange for commission rather than a marketing budget.

What is the downside of a shared platform?

The customer relationship sits partly with the platform rather than entirely with the producer.

How should a local producer position against large manufacturers?

On quality, traceability and provenance rather than price, with any claim about origin or method accurate and consistent with labelling requirements.

Originally published in May 2017. Updated September 2026 to explain how small producers make online selling work, using the lead story from the original roundup.

Tshepho Joel - author photo

Edited by
Tshepho Joel

Tshepho Joel is an experienced digital strategist with a proven track record of lifting user retention, leads, and revenue. Drawing on a robust background in performance marketing, he brings a data-driven, results-first eye to his work. Above all, he is dedicated to helping South African entrepreneurs start, fund, and grow their businesses.

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