Dropshipping in South Africa has already been discovered by a fair amount of entrepreneurs. Many have turned it into a lucrative business, and some are still on the fence about this opportunity’s success. If you fall into the latter category, here’s why you need to start dropshipping in South Africa.
In a previous article, we explained that first-time business owners can benefit from dropshipping because it is low risk with limited capital expenditure. Because you are selling another company’s products without needing to fulfil the order yourself, you don’t need to spend money on product development, sourcing raw materials, or maintaining a physical store or warehouse. All of a drop shipper’s expenses are related to marketing efforts to convince buyers to purchase a product from them.
Without further ado, here is why you need to start dropshipping in South Africa.
Advantages of Dropshipping in South Africa
Low-Costs with Virtual Inventory
Dropshipping is usually facilitated through an online store. With a virtual storefront, there is no need to have physical stock in a warehouse that you pay monthly rent for. Large and bulky items in particular benefit from dropshipping as the products are shipped directly from the manufacturer to the end-user. Start-up costs also only involve the initial funds you need to buy your online store’s domain, host it and set it up. This will also include the fees for plug-ins to your website that allow you to run dropshipping.
Location and Reach
When dropshippers source their products, the reach that large manufacturers or suppliers have benefited them because it reduces geographic shipping costs in some instances. Reaching a wide audience is easy because of this too, as buyers receive their products fast regardless of where they live.
Disadvantages of Dropshipping in South Africa
High Costs of Shipping from Overseas
South Africans might find that suppliers from other countries may be cheaper than local manufacturers, but shipping costs are a fortune. To cover this expense, you might need to increase your selling price and your customers might then choose not to buy your products at all.
Quality and Customer Service
Dropshipping has the disadvantage of entrepreneurs not being able to ensure consistent quality of products. Since the products never go through the store owner’s hands, you might never see what the standards of quality are that your product adheres to. Along with that, delivery issues might be difficult to adhere to since shipping from overseas isn’t in your control. All of these factors can lead to unhappy customers.
Factors to Consider with Dropshipping
When you start dropshipping in South Africa, there are a couple of factors you need to keep in mind.
Tax and Legal Issues
Like any business, there are legal requirements that you need to consider. When you ship products from other countries, you need to familiarise yourself with what you can and cannot sell. Also, don’t forget that you still need to register your business with CIPC and SARS.
Local is Lekker
Sourcing products to build your dropshipping business around from local suppliers shouldn’t be overlooked. The businesses are already in the country so it has developed products for the South African market. There are also no import costs involved.
What Platforms to Use for Dropshipping
There are many platforms that offer all the necessary support to potential dropshippers. These are:
Shopify
Shopify is a popular e-commerce platform and offers a dropshipping service. You need to start by setting up your online store by using Shopify.
WooCommerce
WooCommerce is WordPress’ e-commerce plug-in. This is another option that facilitates an online store with a dropshipping service. Users like WooCommerce because of its highly customisable interface.
Ecwid
Ecwid is an e-commerce platform that offers a dropshipping service. It reportedly also has highly customisable features and integrations.
Wix
Wix is known for its user-friendly interface that allows any person to build their e-commerce website. There are various integrations, that can be added to facilitate a dropshipping business.
South Africans looking to start dropshipping have many reasons to jump on this opportunity. By understanding the pros and cons of such a business, they can make an informed decision about their new venture. Thanks to the many tools that exist, dropshippers can create user-friendly online stores that facilitate their dropshipping journey.
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