What Is Dropshipping and How Does It Work In South Africa

Dropshipping can be a good way to earn extra income.

It is a simple and popular way to start a business without facing common retail problems like buying, storing, or shipping products.

That’s the main advantage of dropshipping. You sell products online without handling them yourself. 

Your suppliers manage the stock, packaging, and delivery, while you focus on attracting customers and making sales.

In South Africa, this business model is growing fast because starting a traditional business requires a lot of money. 

Renting a shop, buying stock, and paying daily expenses are costly. 

With unemployment above 32% and living costs rising, dropshipping offers a practical way to start a business with less risk.

We’ll cover:

• The basics of dropshipping
  
• How the process works step-by-step
  
• The role of suppliers and your legal duties
  
• Pros and cons for South Africans
  
• The top trends in 2025
  

Let’s get started.

What Is Dropshipping?

Let’s say you find a popular gadget online. It’s selling fast on Instagram, and you decide to list it on your website. 

When a customer buys it, your supplier ships it directly to them. You never touch the product.

That’s the heart of dropshipping. You act as the middle person between the customer and the supplier.

This business model started booming in the early 2000s through sites like eBay. 

Today, it’s a global industry worth over USD 418 billion. In South Africa, e-commerce continues to grow, with more than 11.7 million online shoppers this year.

Unlike traditional retail, you don’t need to buy R50,000 worth of stock upfront. 

You can test different products easily. If one doesn’t sell, you can switch to another without major losses.

South Africa’s internet usage also supports this growth. More than 40 million people are online, and 90% of e-commerce purchases are made through mobile phones. 

For example, a seller in Cape Town can sell eco-friendly bags to customers across the country using TikTok or Facebook.

Still, dropshipping is not a get-rich-quick scheme. It takes consistent marketing, customer care, and product testing. 

But because the start-up costs are low, it’s one of the easiest ways to enter the online business world.

Think of yourself as the connector between buyer and supplier. South Africa’s e-commerce market, estimated at over USD 35 billion in 2025, is filled with opportunities for those who move fast.

What Are Dropshipping Suppliers?

Suppliers are your business partners behind the scenes. They store, pack, and ship the products for you. Your job is to attract customers and make sales.

There are two main types of suppliers for South African dropshippers — global and local.

Global suppliers like AliExpress offer a huge range of products at low prices. 

However, shipping from China can take two to four weeks, which may frustrate South African customers.

Local suppliers can deliver within a few days and handle returns more efficiently. They also help you avoid customs delays.

Before choosing a supplier, check:

• Shipping times and return policies
  
• Product quality and packaging
  
• ZAR pricing and hidden fees
  
• Customer reviews on HelloPeter or Trustpilot
  

Recommended South African Suppliers:

• Shopstar: Hundreds of local wholesalers, fast delivery, no minimum order.
  
• Dropstore: More than 200 verified suppliers, ideal for fashion and electronics.
  
• CJDropshipping: Global supplier with warehouses in South Africa for faster shipping.
  
• Spocket: Focused on EU and US suppliers but includes premium products suitable for SA.
  
• Zendrop: Automation tools and simple setup, great for beginners.
  

Tip: Start small with one supplier. Build a relationship through WhatsApp or email. Always test a few sample products before selling.

Avoid suppliers who respond slowly, ship unbranded packages, or have unclear policies. Building trust with reliable partners is key to long-term success.

What Is a Seller of Record?

As the seller of record, you are legally responsible for the sale. 

You manage customer service, handle refunds, and ensure products match descriptions.

In South Africa, this means complying with the Consumer Protection Act (CPA). 

Customers can return items within seven days if they are not as described. Transparency builds trust and prevents disputes.

If your annual sales reach R1 million, you must register for VAT with the South African Revenue Service (SARS) and charge 15% VAT on sales. 

You’ll also need to manage import duties for goods valued over R500.

Compliance Checklist:

One Cape Town dropshipper ignored tax registration and was fined R20,000. Avoid such mistakes by staying compliant.

Also, ask your suppliers for invoices and proof of purchase for every order. This helps during audits and protects your business legally.

How Does Dropshipping Work?

The dropshipping process runs smoothly once you set up the system correctly. Here’s how it works step by step:

1) Partner with a Reliable Supplier

Research and compare options using platforms like DSers or Dropstore. 

Choose local suppliers when possible to shorten delivery times. Negotiate pricing and agree on profit margins (typically 30–50%).

2) Set Up Your Online Store

Create a store on Shopify, Wix, or WordPress. Shopify starts around R400 per month and supports ZAR payments.

Register a domain name via Domains.co.za and connect payment gateways such as PayFast or PayGate.

3) Market and Receive Orders

Run Facebook and Instagram ads targeting local audiences. A small R100 daily budget can drive your first sales. 

When a customer buys, you receive a payment notification instantly.

4) Forward the Order to the Supplier

The supplier receives the order details automatically if your store is integrated with apps like DSers or Zapier. 

You pay the supplier the wholesale price and keep the profit.

5) Supplier Packs and Ships the Product

The supplier prepares the order, adds your brand label, and ships through local couriers such as The Courier Guy, Aramex, or PostNet.

6) Customer Receives the Product

Once delivered, follow up with your customer and request a review. Handle returns or complaints according to the CPA rules.

Repeat this process and scale by adding new products, improving ads, and automating operations.

Should You Start Dropshipping?

Ask yourself these questions:

• Do you have at least 10 hours a week to work on marketing?
  
• Are you comfortable using online tools and apps?
  
• Can you handle slow progress at first?
  
• Do you have R5,000 or more for setup and advertising?
  

If you answered “yes” to most of these, dropshipping could be a good fit.

South Africa’s e-commerce industry grows by over 20% per year. Fashion, beauty, and tech accessories are the most profitable niches.

If you live in areas with poor internet, consider mobile data backups. The business can run entirely from your smartphone.

For those who enjoy marketing and learning digital skills, dropshipping is a strong choice for a side hustle or full-time income.

Pros and Cons of Dropshipping

Many South Africans start small and grow fast by focusing on reliable suppliers and niche products. The key is consistency and quality service.

Dropshipping in 2025

Dropshipping continues to evolve. In 2025, success will depend on speed, personalization, and sustainability.

• AI tools like ChatGPT help write product descriptions and automate support.
  
• Eco-friendly products are trending as more South Africans prefer sustainable goods.
  
• Mobile shopping keeps dominating, with 90% of users buying via smartphones.
  
• Government support through the Department of Trade, Industry, and Competition (DTIC) encourages digital entrepreneurship.
  

Keep an eye on tools like Takealot Seller API and DSers Analytics to track trends. Budget around R1,000 per month for software and marketing tools.

Conclusion

Dropshipping in South Africa is more than a side hustle — it’s a practical path to financial independence.

Start by finding trusted suppliers, building your online store, and staying compliant with local laws. Begin small, test products, and focus on marketing.

You already have the blueprint. Start today and turn your online store into a growing business.

Now it’s your turn — what will your first product be?