Growing E-Commerce Industry Fuels Africa Dropshipping Market
As per the latest market study on “Africa Dropshipping Market Forecast to 2028 – COVID-19 Impact and Analysis – by Product Type and Organization Size,” the market is projected to reach US$ 41,890.42 million by 2028 from US$ 10,720.87 million in 2021; it is expected to grow at a CAGR of 19.3% from 2021 to 2028.
Consumers, nowadays, prefer online shopping due to the availability of numerous websites for choosing the products they want. E-commerce platforms also help businesses in expanding their reach to customers. Although the e-commerce industry is in a nascent stage in Africa, a growing emphasis on online marketing tools, including Google and Facebook ads, is boosting its growth. E-commerce is popular among the consumers of all age groups in developing countries in Africa, such as Egypt, Morocco, and Algeria. According to a report by International Trade Administration, online sales in South Africa increased by 66% from 2019 to 2020, to reach more than US$ 1.8 billion. Clothing and apparel is the top e-commerce product category in South Africa, followed by online entertainment. Online platforms also offer several opportunities to enterprises for selling various high-quality products, including electronics, food, personal care products, and appliances, as they allow customers to compare a broad range of products, along with enabling them to avail discounts and request easy returns.
The rising e-commerce industries in African countries are accelerating the growth of dropshipping businesses. Dropshipping is a profitable business model for e-commerce companies that do not need much capital to start with. Various e-commerce platforms are acquiring dropshipping service providers to expand their presence in this business. For instance, Shopify, Inc., an e-commerce company, has acquired Oberlo, a dropshipping service provider. Further, various e-commerce businesses are expanding their product portfolio to include wholesalers in their clientele. Thus, growth of e-commerce industry is boosting the demand for dropshipping in African countries.
The Africa dropshipping market is segmented in the bases of product type and application. Based on product type, the market is segmented into toys, hobby and DIY, furniture and appliances, food and personal care, electronics and media, fashion, and others. In terms of organization size, the dropshipping market is bifurcated into small and medium-sized enterprises, and large enterprises.
The key companies profiled in the dropshipping market include BrandsGateway, Calasca, Dropstore, Men's Republic, Neat Freak, PARCELNINJA, Planet54, The Scents SA, Third Wave Distribution, and Gadgetgyz Online. Several other players are also functioning in the market worldwide, contributing significant revenue shares year-on-year.
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