Dropshipping is one of the most profitable businesses in South Africa. Many South Africans are making money online through dropshipping. With dropshipping, you don't store inventory, but instead, you sell products from the supplier's store. When a customer makes an order, products are shipped directly from the supplier's store to the customer. Dropshipping business is best suited for online marketers and social media influencers. This is a guide on how to start a dropshipping business in South Africa.
Research a Market or Niche
Researching your dropshipping niche is a crucial step before starting a dropshipping business in South Africa. This will help you understand the market you are going to serve and the products you are going to sell. If you want your dropshipping business to succeed, narrow it down to a specific product you’ll be marketing and selling. Also, ensure you have an interest in the product that you pick.
Find Dropshipping Suppliers and Products to Sell
After deciding on the specific products to sell, find trustworthy and reliable suppliers for those particular products. Finding a supplier is not easy but as the dropshipping business is constantly gaining popularity in South Africa. Many suppliers are joining the dropshipping business making it easier to find them.
There are specific platforms and programs where you can find suppliers who provide dropshippers with products to sell. Examples of such platforms in South Africa include Drop store, Calasca, Third Wave Distribution, Men’s Republic Distributors, Planet54, The Scents, Neatfreak, Shopstar, and Marijuanasa.
Build an e-commerce website to Sell your Products
A dropshipping business is done online. As such, you will need to create your online store once you have decided on the products to sell and after finding a supplier. You will need a website for marketing your inventory and managing orders. If you do not have the technical know-how on building websites, you can use of some platforms such as Shopify and WooCommerce free of charge.
Link a Payment Gateway to your Dropshipping Store
After building your website, you will need to set up a gateway to receive online payments from your customers. There are many popular payment gateways in South Africa including PayFast you can integrate directly with Shopify and WooCommerce. Other payment gateways to consider in South Africa include Peach Payments, PayGate, PayU, Yoco, Pay Genius, MoneyMatrix, and SnapScan.
Market your Dropshipping Store
After you have linked a payment gateway to your online store, you will need to market your dropshipping business to get traffic. With a high traffic to your online store, there are high chances of making more sales. You can market your dropshipping business through Facebook ads, email marketing, dropshipping ads, or even through Google.
Apart from getting traffic through paid advertising, you can drive traffic to your website organically using Search Engine Optimization (SEO) strategies. If you decide to use SEO strategies, you will need to optimize your individual product pages.
Analyze and Optimize your Results
When your website is ready and your dropshipping business is running, you will need to constantly check the progress to see whether it’s working as expected. Track activities on your site such as conversion rates, abandoned cart rates, and site visits. Use this data to make informed decisions concerning your dropshipping business. You will need to note where to adjust to increase traffic and sales. The online landscape keeps changing and as a dropshipper, you will need to stay updated with these changes.
Is Dropshipping Profitable in South Africa?
Yes. However, its profitability depends heavily on your ability to market your storefront. You need to sell high-quality products, have fast handling and shipping process, great customer service, and be competitive in the niche you are in. Finally, to make it in the dropshipping business in South Africa, requires hard work and commitment.
Advantages of Dropshipping
The dropshipping business has several advantages. They include:
- Little capital to launch. A dropshipping business does not require much capital to start. It is because you do not buy or store inventory.
- No inventory. With dropshipping, you don't have to store an inventory yourself neither do you need to find a facility to keep the inventory safe from damages.
- No Shipping fees. In dropshipping, the supplier packages and ships products directly to the customer saving you lots of costs.
- Freedom to work. You can manage your dropshipping business from anywhere in South Africa at any time.
Summary on How to Start a Dropshipping Business in South Africa
Dropshipping business is among the most profitable online businesses in South Africans. To make good money from dropshipping, you need to spend a lot of time in optimizing your website and organizing sales in good time. You also need to market your online store to have customers buy your products. Before starting a dropshipping business, research the market first and find a competitive niche.