What Is Dropshipping?
Dropshipping is a type of e-commerce selling method where the business owner does not have to physically possess the products or even manage the stock. The dropshipping entrepreneur has several key responsibilities he is in charge of creating an online store, picking and promoting the goods, finding and cooperating with a reliable dropshipping supplier. In return, the dropshipping supplier handles other aspects of the business such as managing the stock, packing and sending the products in the name of the business owner and providing tracking information.
The Transaction Process In Dropshipping
Essentially, the dropshipper simply manages the transaction process. When an order is placed on the online store, the dropshipper transfers the customer’s order details to the dropshipping supplier and pays the original product price. When the supplier receives the order details, he packages and ships the order directly to the customer, leaving the dropshipper only responsible for customer support. The difference between the supplier’s original product price and the marked up price paid by the end buyer is the dropshipper’s profit.
Sounds pretty appealing, doesn’t it? From this, you can see why dropshipping can be such an attractive and accessible business.
Payment Of Goods For The Consumer
The dropshipper does not need to pay upfront for stock or storage of the goods. Neither does he have to be concerned about the delivery, as this is the responsibility of the supplier.
What’s more, a dropshipping business can be launched and maintained from absolutely anywhere in the world! The flexibility of this kind of business is one of its many beneficial aspects. And anyone can try their hand in it, from ever-busy moms to first-year college students, to regular everyday workers. That’s why it doesn’t really matter where you’re from, as long as you have access to the internet and a computer, you can sell to anywhere in the world! And South Africa is no exception!
Dropshipping In South Africa
Dropshipping has proven to be one of the most efficient businesses strategies for starting a profitable venture. Over the last several years, more and more people have begun establishing e-commerce enterprises thanks to this accessible business model.
This type of business can be started anywhere and targeted at buyers of any demographic and location, South Africa included. And this shouldn’t come as a surprise, since with a population of almost 60 million as of 2020, South Africa is a rather large and growing market to target for a dropshipper. Furthermore, the e-commerce market revenue in this country is projected to reach $4,057m in 2020 with an annual growth rate of 10.1%.
How To Dropship In South Africa
Starting a dropshipping business in South Africa is similar to starting it anywhere else. Here is what you have to focus on:
- Thoroughly research the niche you want to take
- Find quality products and reliable suppliers
- Establish an online store where you can sell your products
- Attract potential customers to your website
