How to Succeed in Dropshipping in Africa?
Dropshipping is now much more than just a business model: it is a real opportunity for transformation for young African entrepreneurs. Contrary to popular belief, our continent is full of untapped potential in e-commerce. My personal journey and years of experience have allowed me to understand the real mechanisms of success in this field.
Before diving into the technical details, let's understand a fundamental element: dropshipping in Africa is not a simple reproduction of Western models, but an intelligent adaptation to our local realities. Each country, each region has its own economic, cultural and logistical specificities.
Table of contents
What is dropshipping?
Le dropshipping is a business model in which an online merchant does not stock the products they sell. Instead, when the merchant receives an order from a customer, it forwards that order and delivery details to a third-party supplier or wholesaler. The supplier then takes care of shipping the products directly to the customer.
In the dropshipping model, the merchant essentially acts as an intermediary between the customer and the supplier. It does not physically manage inventory or ship products. This allows the merchant to focus on promoting and selling products, without having to invest in initial inventory.
The benefits of dropshipping include cost reduction related to storage and inventory management, as well as the flexibility of being able to offer a wide range of products without having to purchase them first. However, it should be noted that the merchant may have less control over the customer experience and delivery time management, as it depends on the supplier.
Dropshipping is become popular in recent years due to its simplicity and low initial investment. However, it is important for merchants to choose reliable suppliers and maintain excellent communication with their customers to ensure satisfaction and trust.
The advantages of drop shopping
Dropshipping, a system acclaimed on the market places. Reading this definition of dropshipping, it appears that this system has been used for many years by most of the large known marketplaces such as Amazon, Ebay, Priceminister, Rueducommerce, etc.
In fact, all of these sites offer brands/companies/producers the opportunity to sell their products on their sites in return for a commission on the sales made. Dropshipping is an e-commerce method allowing you to launch an e-shop or a low cost online store. The process is as follows: you sell products in your shop, a customer orders one of your products and you have your mission and order the product from your supplier.
So the big advantage of Dropshipping is that no inventory is required. In fact, stocking up at the beginning can be a big risk, especially if it doesn’t work. Whereas with Dropshipping if a product does not work you can remove it from your shop or simply stop promoting this product. With dropshipping, products go directly from the supplier to your customers. You do not manage the stock or the sending of orders. Drop shipping essentially works in 4 four main steps:
- First of all : Your customer places an order from your online store
- Second: Your store automatically sends the order to your dropshipping supplier
- Thirdly: Your dropshipping supplier (or dropshipper) prepares your customer's order
- Fourth: Your dropshipping supplier (or dropshipper) sends the order directly to your customer
The purpose of Dropshipping is to test products. At the beginning of your website you only have no idea what will work or not. This is where Dropshipping comes in. The goal is to stock up on products that work very well. Why stock up?
Because by ordering in quantity you will have a lower unit price. So, if you sell a lot in Dropshipping, switch to stock, it can only be advantageous.
The constraints of dropshipping in Africa
✔️ The constraints to set up your online store
To transact on a store (Dropizi, Prestashop, Shopify, etc.), online payment solutions such as Stripe or PayPal are essential for your online transactions. However, they can only be used if your company is registered in a country with which they have established contracts and regulations. You can use Stripe if your business is based outside Africa and you are applying for e-resident status. Fortunately, these two payment services are gradually expanding to all African countries.
✔️ Constraints related to means of payment
Before, many people still considered payment methods as a constraint to the success of dropshipping in Africa. One of my articles published on this site changed the data. You can now sell online with complete peace of mind. In fact, the main constraint of doing business with a company located in Africa was related to payment methods.
Indeed, to sell and collect payments on an online store (whether shopify, prestashop or woocommerce), you had to use a payment method such as Stripe to collect bank cards or Paypal.
And that's where it got stuck! Because in reality, it doesn't matter whether the customer is in this or that place, if the supplier delivers, it's ok, even if it's from China. This is the whole advantage of an online business. Stripe and Paypal have very strict rules and contracts/regulations established with certain countries. We can only use these payment methods if our company is registered in one of these countries. However, there will be a very effective alternative that I will explain to you in the third part of this article.
For the rest, you can very well advertise on Facebook from Africa, do Google Adwords or use Shopify. Likewise, if your supplier is Aliexpress, there will be no payment problem.
Dropshipping in Africa
To succeed in dropshipping you must follow these steps:
✔️ Step 1: Create a website to sell your products
I have often heard people say " it's a good niche”, which always confuses me because there is no right or wrong niche. There are no saturated market spaces, and even the most in-demand niche wouldn't be a good fit for a retailer that doesn't put in the effort to market and build a reliable store. My basic principle when selecting a niche is that I had to be interested in the niche to open a store there. Many people don't think this is important when choosing a category for their store.
But I found that Passion precedes every successful business. If you choose a niche you're unfamiliar with, you probably won't be as invested as you should be. Despite all of this, I still had a few niches that I could fill. Art was one of my main interests, so this niche was on the table. I also loved animals and had a dog and a cat, another category I could delve into.
Best web host
- Domain Name, SSL Certificate and Backups Free
- Professional email addresses unlimited
- 100GB space Fast, powerful and cheap
✔️ Step 2: Have a niche, a target community, an audience
This step actually went hand in hand with the first step. Simple Google searches led me to competing stores. From there, where I could look at the reviews left by the public and find out who was mainly attracted to the dog house. Further competitor research showed exactly who my competitors were targeting and what they were successfully achieving. Being a pet owner myself, I had a fair idea of what was needed and was interested in the products I planned to sell.
With a heady combination of Google Trends and common sense, I mapped out the lifestyles, personality traits and attitudes of people likely to buy my product.
Step 3: import the products into your store
What I can tell you is that the import depends on the type of store you have created. However, you can use the Oberlo chrome extension to do it. Oberlo is the solution for any dropshipper who wants to optimize their time, that is to say ALL dropshippers!
Tips for New Entrepreneurs
1. Focus on Marketing Mastery
With so many aspects of a dropshipping business automated, you'll have more time to focus on marketing and branding. While tweaking a website, designing a logo, and creating graphics can be a lot of fun, marketing is where the money is made. You will need to spend time learning how to master ads, increase your traffic, convert visitors to your store.
Ads and search engine optimization can help you drive more traffic to your store. Keep in mind that most ecommerce stores convert to a rate of 1 to 2%. This means that if you have less than 100 visitors on your site, you probably won't get any sales. The more traffic you get to your store, the more likely you are to convert the sale. Most focus on ads because it is instant gratification and can generate a lot of sales in a short time.
However, SEO can help drive sales in the long run by allowing you to rank high in search. Creating blog content and page optimization products can help you build an audience in search with minimal ad spend and low acquisition costs. Your website should also be optimized for conversions. Do you use scarcity and urgency to compel people to buy in your store?
Have you added customer reviews to your store to give it the social proof it needs? Is your website presentable from the customer’s point of view? Are you missing images on your home page? There are many steps you can take to ensure you are properly optimizing your online store.
2. Create an amazing offer
An important tip for dropshipping is to create a compelling offer. Don't be the store owner that doesn't include sales or bundles. If none of your products are for sale, people may lack motivation to buy your product. However, if you present a good product with the right offer, you will be more likely to convert them. Bundles can also work very well. In fact, bundling is one of the best-kept secrets in dropshipping. When creating a bundle, focus on selling more of the same product.
For example, if you sell hair extensions, your listing will include more hair extensions. If people like the product, they will want more of it. The hardest part is convincing your customer to take out their credit card, but once it's out.
3. Avoid underpricing your products
Dropshipping products allows you to maintain lower product cost. The cost of goods is usually relatively close to the wholesale price, allowing you to sell products at market value and make a profit. The goal of a dropshipping business is to be profitable.
If you are a student, this silver necklace is absolutely your first choice. The silver color will show your vitality and your youth. sell a product for $5, you should charge it about 19,99 $. You need to consider the cost of goods, marketing, business expenses, and possibly hiring a team. If other brands are undercutting their prices, don't undercut yours. As long as your prices are fair and at market value, you should maintain a profitable price level. You should also work to increase the average order value in order to gain a higher profit of each order. Create strategies that will help you make more money overall.
4. Automate your business more
Using dropshipping tools like Oberlo, many aspects of your business will be automated. As this dropshipping tutorial highlights, you can do product research before launching an online store. Whether you have a full-time job or are looking to create a more passive income, figuring out how to automate more aspects of your business will give you more freedom to pursue your passions.
Ecommerce automation tools can help you quickly grow and scale your business. Buffer allows you to automate social media posting. Kit automates marketing tasks such as advertising, retargeting, emails, etc. Additionally, you can check out marketing automation software and Shopify tools, to help you simplify your marketing tasks.
5. Make sure your website is presentable
One of the most important dropshipping tips is to make sure your website is user-friendly. By this I mean that your website does not should not scare a customer. Many new store owners start marketing their stores when their homepage has no images, only placeholder text, and all of their products are grouped into one big category.
Before launching your store, take a look at other websites in your niche.
- What does their homepage look like?
- What is the format of the copy on their product page?
- Do their images include logos?
- What types of pages does their website contain?
- What features or applications does the store include on its website?
After taking notes on the look and layout of different stores in your niche, browse the Shopify app store to find apps that allow you to model your store after other successful brands. You can include countdown timers, shoppable Instagram galleries, or affiliate programs. You can also add pages to your website such as refund policies, FAQs, delivery information, etc.
When it comes to banner images for your homepage, don't hesitate to use relevant stock photos. You'll be able to find images for a range of niches and they're free to use and edit on your store. If you're looking for more stock image websites, there are tons of free resources online.
6. General Vs. Niche Store
If the goal of creating a store is purely to experiment and find the right niche, create a general store. You will still need to create separate product categories for each product type for easier navigation. While most successful stores start with a specific niche, the idea behind an online general store would be that it is your starter store.
If you have already done your research or validated your business idea, you should work on creating a niche store. Your Niche Store Allows You to Focus on Search simple for the right audience for your products. The running niche would be an example of a niche within the general fitness category.
You don't need to include your niche name in your domain if you plan to expand into other product categories as you grow. Brands like Amazon started out as a niche store (online bookstore) and eventually grew into a store that sells everything.
7. Prepare to pivot
Although a dropshipping business is easy to get started and ideal for new entrepreneurs, it remains a business. You will encounter challenges and obstacles that will force you to find a way to overcome adversity.
You will need to pivot several times as you expand your store. A new trend may emerge in your niche that you need to add to your store immediately to capitalize on sales. A product that you really like may not be appreciated by your customers who demand its removal from your store. An ad can work very well and force you to scale quickly, requiring you to negotiate with your bank for a business loan.
A pivot is neither good nor bad, it's a requirement if you want your business to last for years. You will need to have the intuition to know when to act in your business to ensure its continued growth.
8. Provide exceptional customer service
There are ways to stand out by selling the same products as everyone else. One of the best ways is to offer great customer service. Offering refunds and responding to customer requests is important, but it doesn't really separate you from many big brands. Joke with your customers. Write them thank you cards if they order from your store multiple times.
Host exclusive monthly giveaways for customers who have ordered from you in the past. Do whatever it takes to make every customer feel valued and appreciated. Without them, you would not be successful. Start those habits of customer appreciation from your very first sale. Customers might not always remember what they bought on your website, but they will always remember how you treated them.
You can also use chatbots to respond instantly or guide customers to find what they're looking for on your site. Check out this article to find out how chatbots can help you increase your online sales.
9. Always choose ePacket
As a dropshipper, you are free to sort products based on ePacket shipping. Since ePacket shipping is the fastest and most affordable shipping method, you'll be able to ensure fast delivery to customers without breaking the bank. On average, ePacket shipping costs are less than 5 USD for most products.
This allows you to always make a profit when selling goods at market value. In my personal experience, I've seen ePacket deliveries reach customers within a week, making it the best delivery method for dropshippers.
10. Be active every day
Running a business requires daily effort. You don't need to spend eight hours a day working on your business, but you will need to spend at least an hour a day in your store as you increase your sales. Every day you will need to process orders so that products get to your customers quickly. You will also need to respond to customer inquiries within 24 hours (ideally less) so customers can rely on you.
Marketing efforts will also need to take place every day. You can automate your publication on social networks earlier this week. However, you should aim to be active on social media daily. You'll also want to make sure your ads are still showing.
11. Import around 30 items to get started
When I built my first online store four years ago, I made the mistake to import 600 products in my store in one day. I know it can be exciting to add a ton of great products to your store because it can be done with just a few clicks. However, there is a problem. When you add too many products to your store, you need to rewrite product descriptions and maybe remove the logo from a few images.
Writing copy for even 100 products can be time-consuming and exhausting, especially if you're a student or busy a 9 to 5 year job.
Stick to 30 products at the start. You can write quality product descriptions for 30 items in just a few hours. Starting with a smaller collection will help you get your business up and running quickly so you can start making sales. Once a week you can add 10 to 20 new products in order to grow your store's collection while already making a profit. You don't have need 100 products to get your first sale. All you need is a great product to land your first sale.
12. Order product samples
If you plan to dropship a small number of items, a good tip is to order samples from your suppliers. As an online seller, this dropshipping tip has great potential for your store. It allows you to take better photos of the products you will offer.
By being able to experience the product yourself, you will also be much more precise when writing product descriptions. You can also use these product examples for video product reviews, ads, and other marketing materials. This will give you a real sense of what it’s like to order from your store. You’ll also know if you have any room for improvement or adjustments to make accordingly. By putting yourself in your customers’ shoes, you’ll have an authentic experience of what it’s like to shop in your store.
13. Watch your competition
Another dropshipping tip is to like your competitors on social media. Monitor their websites regularly and their social media pages. By liking their page, you will start receiving their products and retargeting ads.
- What products are they advertising?
- Does this product get a lot of engagement, like comments or shares?
By monitoring and paying attention to your competitors, you will know what products you should sell in your store. When you pay attention to the types of posts your competitors are adding to their social media pages, you'll know what kind of content people in your niche really like — it helps you become a better marketer.
14. Modify the personalized note at your supplier
Setting up your note with your supplier dropshipping allows you to personalize messages for your suppliers. These messages can be: "Only ship with EPACKET". With these messages, you can also tell them that you are dropshipping so that they don't add their invoices or marketing materials in packages.
Are you an owner of experienced store? What dropshipping tips would you share with new entrepreneurs to help them build their first store? If you're a new store owner, let us know which of these dropshipping tips helped you the most.
15. Create a trustworthy brand
This dropshipping tip is all about taking responsibility for how you present yourself. Strengthening your brand position can improve your reputation as a leader. Take a look at what makes your business unique and what part of it will help boost your brand image. Entrepreneurs who know how to create a brand have a competitive advantage.
Build this confidence through your image brand and increase awareness of your brand. Think of your brand as the personality of your business. Strong branding will help increase the value of your business and make you memorable to your customers.
It's up to you to play, share, like and give us your opinion in comments
Leave comments