Dropshipping is the latest trend in the online marketing industry. African online entrepreneurs are already cashing in on it… But some are still asking: what exactly is dropshipping and how is it done?
When starting an online business in Africa, one of the key elements is having products to sell. So how do you get products, where do you find them, how do you know if they’ll sell, and how do you get them to customers?
In the vast world of internet entrepreneurship, there are many answers to all of those questions. You could create your own products—but that can be a long and time-consuming process. Or you could buy in bulk from a manufacturer and then ship out products to your customers as they buy. But that is an expensive solution, and you have to take the risk of investing that money in buying stock and not having sales.
What is Dropshipping
There is a solution that allows you to sidestep all those hassles. And it makes the whole startup process for your online venture that much easier. It’s called drop shipping. And it has taken the online business world by storm. A drop shopping business is one of the fastest, easiest, and most low-risk ways to get started with an online business.
Take a look at how to start a dropshipping business in Africa, how the dropshipping business model works, and the key things you should know before going into it.
The table below can help you with your decision-making process, and it provides an overview of the advantages and disadvantages of starting your own dropshipping business in Africa.
- Sell almost any products, in any niche
- Use a proven business model, which is even used by large retailers such as Amazon
- No need to store any inventory
- No need to pack or ship out products
- No requirement for up-front capital
- Expensive handling or drop-ship fees that eat up profits
- Not all companies are willing to drop ship
- Drop shippers must give you accurate in-stock numbers so you don’t sell items if the drop shipper goes out of stock on them
- Some drop-ship suppliers have inconsistent service, slow ship times, or difficult return policies