The growing adoption of tablets, smartphones, laptops, refrigerators, television sets, and other consumer electronics in developing countries creates new opportunities for various technological developments. Developing markets hold a huge scope for the growth of the consumer electronics industry, as the consumption is projected to surge with the increase in penetration of brands. Mobile phone cases are considered a promising e-commerce niche. Gadgetgyz, an e-commerce player in South Africa, is highly active in dropshipping such mobile accessories. Thus, with the rise in demand for mobile accessories, consumer electronics is emerging as a significant product category for dropshipping businesses in African countries. Moreover, the consumer electronics dropshipping business has attracted the attention of several start-ups. Companies such as BrandsGateway, Men’s Republic, Dropstore, and Planet54 are involved in dropshipping business. Thus, the flourishment of the consumer electronics industry is bolstering the dropshipping market growth in Africa.
The COVID-19 crisis is affecting the industries worldwide, and the African economy witnessed severe impact in 2020 and 2021. The pandemic has disturbed dropshipping businesses across the region. Warehouses, suppliers, and delivery companies are not operating at their full capacities, resulting in possible order delays. Also, the factory lockdowns, business shutdowns, and travel bans further aggravate economic problems in African countries. Hence, the decline in economic condition in the region and impact of COVID-19 on the progress of various industries restrained the growth of the dropshipping market in Africa in 2020. The disrupted supply chains of companies have affected the delivery processes, thereby affecting dropshipping stores in the region. The factory shutdowns travel bans, trade bans, and border lockdowns have adversely affected the dropshipping industry in Africa.
Internet penetration in African countries is growing at a rapid pace, making them potential markets for various dropshipping players. As of 2021, 84.1% of the population in Morocco uses the internet, reporting a year-on-year (y-o-y) increasing of over 9%. Similarly, in Egypt, 71.9% of the total population is connected to the internet, and the country recorded a 14.6% increase in internet users during 2019–2020. As per the Egyptian government, Egypt's wholesale and retail trade sector represented ~14.5% of the gross domestic product (GDP) during fiscal year 2019–2020. The sales of clothing and consumer electronics have also risen swiftly in Egypt. Thus, the rise in internet penetration can be correlated to the proliferation of the rise in sales of commodities online.
Based on product type, the Africa dropshipping market is segmented into toys, hobby and DIY, furniture and appliances, food and personal care, electronics and media, fashion, and others. In 2020, electronics and media segment accounted for the largest share of the market.
The dropshipping market is bifurcated into small and medium-sized enterprises, and large enterprises based on the organization size. In 2020, the small and medium-sized enterprise segment accounted for a larger market share.
| Report Attribute | Details |
|---|---|
| Market size in 2021 | US$ 10,720.87 Million |
| Market Size by 2028 | US$ 41,890.42 Million |
| Global CAGR (2021 - 2028) | 19.3% |
| Historical Data | 2019-2020 |
| Forecast period | 2022-2028 |
| Segments Covered |
By Product Type
|
| Regions and Countries Covered | Africa
|
| Market leaders and key company profiles |