Dropshipping for Beginners: Meaning of Dropshipping and How to Start a Lucrative Dropshipping Business in Africa

In this digital era, dropshipping has become one of the lucrative businesses to start. Dropshipping business is a one-of-a-kind and alluring business concept.

Dropshipping removes barriers to trading goods online. These barriers include expenses on inventory and delivery, time spent procuring goods, expenses on procuring warehouses for goods, etc.

In this article, I will be explaining the meaning of dropshipping and how to start a lucrative dropshipping business in Africa.

Meaning of Dropshipping

Dropshipping is a business model where the entrepreneurs sell products manufactured, stored and distributed by a third-party from their online store. The entrepreneur is called a dropshipper.

In this business model, there is no chance of overstocking. The dropshipper makes no payment for the product until it has been sold to the customer in need of it.

Dropshipping is best for a newbie because it reduces financial and time commitment and removes the barrier of capital.

Read Also: How to Start a Digital Marketing Agency in Africa

How Does Dropshipping Work?

When a customer places an order for a particular product, the store or dropshipper purchases the item from the third party supplier and sends it directly to the customer. Hence, the dropshipper risks and expenses are minimized.

The dropshipper does not need to handle the product but acts as the middleman between the supplier and the client. He gains by adding a little amount to the actual cost of goods ordered from the supplier.

For instance, let’s say you partner with a jeweler and promote his jewelry on your social media platforms or online e-commerce store. You get a customer who orders the jewelry.

You immediately send the order to your jewelry manufacturer, who then carefully crafts the necklace and delivers it to the purchaser. The beautiful item costs you $70 but you decide to sell it for $80. You get a profit of $10.

How to Start a Lucrative Dropshipping Business in Africa 

Building a successful dropshipping business in Africa is quite simple. However, you should know what to sell and who will buy your products.

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The following are the steps to starting a dropshipping business in Africa:

Step 1: Perform market research 

Setting up a successful dropshipping business requires extensive market investigation. You should gather and analyze data regarding your intended audience, sales potential, rivals, and product demand.

Conducting in-depth market research will help find profitable niches, learn about customer preferences, evaluate the competitive landscape, and settle on product offerings and prices.

Step 2: Know the legal requirements 

Legal requirements are an important element in establishing a lucrative dropshipping business. You must understand and adhere to the laws and regulations governing e-commerce, business registration, taxation, and consumer protection in the countries where you intend to establish your business.

Ensuring legal compliance helps to establish customer trust, protects your company from potential legal concerns, and promotes a steady and sustained dropshipping operation. It is critical to engage with legal professionals or relevant government agencies to ensure that your company follows all the legal duties and works within the boundaries of the law.

Step 3: Choose reliable suppliers 

The success of your dropshipping business hinges on your ability to find trustworthy suppliers. Researching and analyzing possible dropshipping suppliers on criteria such as product quality, shipping dates, pricing, and customer service are all part of the process.

By working with reliable vendors, you can reduce the likelihood of problems like late deliveries and defective goods. You can better serve your customers and encourage sustainable growth by establishing solid relationships with trustworthy vendors.

Step 4: Build your online store

Setting up a profitable dropshipping business starts with building your online store. It means making a responsive e-commerce website. This website will show off your items, handle orders, and take payments.

Choosing a reliable e-commerce platform, customizing the design, and making sure the site works well on mobile devices are all important parts of giving your customers a smooth buying experience. A well-designed online store builds customer trust, encourages sales, and helps you build a strong online profile.

Step 5: Choose an easy payment method 

Finding a reliable method of payment is essential when launching a dropshipping company. The process entails incorporating trusted payment gateways into your online store. These payment gateways will ensure safe and reliable financial transactions.

Customers’ trust and happiness will rise if your payment method is convenient. Hence, your business will experience a surge in sales and earnings.

Read Also: How to Start a Lucrative Laundry Service Business in Africa 

Step 6: Choose reliable shipping and logistics companies

Shipping and logistics are important parts of dropshipping. It involves making plans and putting those plans into action to make sure that customers get their products on time and in good condition.

For customer satisfaction, referrals, and the general success of your dropshipping business, it’s important to choose reliable shipping partners and set clear delivery expectations.

Steps 7: Market and promote your business 

Getting the word out about your new business is an essential start. Using channels like social media, email, search engine optimization (SEO), and influencer relationships can expand your brand’s reach and attract more customers.

Step 8: Have a reliable customer support

Customer service is an important part of getting your dropshipping business off the ground. It entails offering people great service when they have questions concerning their orders.

A good customer support system builds trust, makes customers happier, and keeps them coming back.

Step 9: Monitor and optimize 

Starting a drop-shipping business requires constant monitoring and tweaking. Making smart choices and enhancing performance requires routinely examining sales data, customer feedback, and marketing initiatives.

Improve productivity, earn more money, and expand your business by tweaking your product offerings, advertising, and operations to suit your customers needs.


As an emerging entrepreneur, time and money are both in limited supply. Startups seldom make a quick profit. Without the capital to pay personnel, it becomes difficult for most startups to thrive. That is why starting a dropshipping business is your best bet.


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Mary Amakihi
Mary Amakihi
Mary Amakihi is an accomplished economist and also a versatile content creator and finance writer. Leveraging expertise in economics to deliver insightful financial analysis and captivating content. Combining analytical prowess with creativity, she strive to inform, engage, and empower readers through the power of words.

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