How To Start Dropshipping on Takealot in South Africa (2024)

Last updated on November 8th, 2024 at 01:43 pm

In this guide, I will talk about dropshipping on Takealot.

Who is Takealot?

For the green ones, Takealot is a South African e-commerce company that was officially launched in 2011.

However, its roots go back further than that, with the launch of the e-commerce website Take2 in 2002.

In 2010, Take2 was acquired by US investment firm Tiger Global Management, with a 15% stake for Kim Reid, who became an entrepreneur.

Seven months later, Take2 changed its name to Takealot and launched its first advertising campaign.

In fact, Takealot is currently the largest online retailer in South Africa, with a diversified e-commerce business that includes general merchandise, apparel and footwear, and on-demand food and groceries.

The company has a group CEO, Mamongae Mahlare, who has extensive experience building brands and business presence.

Takealot’s founder and co-CEO is Kim Reid, who is stepping back from his role as CEO to become the company’s chairperson.

Table of Contents

What is dropshipping?

Dropshipping is a popular business model where a seller sells products on their online store without holding any inventory.

Instead, they purchase the products from a supplier and have them shipped directly to the customer.

This model has gained popularity in South Africa, with Takealot being one of the largest online retailers in the country.

And you are in luck because in this blog post, we will discuss dropshipping on Takealot.

Can you dropship on Takealot?

Dropshipping on Takealot is a topic of debate and may not be straightforward.

While some sources suggest that dropshipping on Takealot is possible, others indicate that it may not be feasible.

According to a Reddit post, some users have expressed dissatisfaction with the impact of dropshipping on the Takealot platform, citing issues such as slow delivery and poor product quality.

There are some highlights of the challenges of dropshipping on Takealot, stating that sellers need to have the product at Takealot’s warehouse or their own warehouse to sell on the platform.

However, a YouTube video and an article on Dropshipping Hustle mention the possibility of dropshipping on Takealot, albeit with certain requirements and screening processes for sellers.

Therefore, the feasibility of dropshipping on Takealot may depend on specific criteria and the evolving nature of the platform’s policies.

I just thought I should get that out of the way before we continue.

Is selling on Takealot profitable?

Whether selling on Takealot is profitable depends on several factors:

The potential is there:

Large audience: Takealot is the largest e-commerce platform in South Africa, with millions of visitors each month.
Marketplace opportunity: Takealot’s third-party marketplace accounts for over half of its sales, meaning a significant opportunity for sellers.
Success stories: Many sellers experience positive growth and income through Takealot.

However, profitability isn’t guaranteed:

Fees: Takealot charges monthly platform fees, success fees per sale, storage fees, and potential penalties. These can eat into your profits. We’ll talk about fees in the coming sections.
Competition: The marketplace is crowded, making it harder to stand out and be competitive.
Product choice: The product you sell heavily influences your profit margin. Low-cost items might struggle to be profitable after fees.
Operational costs: Managing inventory, logistics, and customer service also contribute to your overall expenses.

To increase your chances of success:

Do your research: Understand the marketplace, fees, competition, and your target audience.
Choose your products wisely: Focus on items with decent profit margins and good demand.
Optimize your listings: Use high-quality pictures, detailed descriptions, and competitive pricing.
Provide excellent customer service: Positive reviews and repeat business are crucial.
Manage your finances carefully: Track your expenses and sales to ensure profitability.

Pros and cons of dropshipping on Takealot

So by now we know that it is possible to dropship on Takealot. But there are a ton of hurdles.

Before we continue, let’s look at pros and cons of dropshipping on Takealot, as well as tips for success in this business model.

Pros of Dropshipping on Takealot

Low startup costs: Dropshipping requires minimal upfront investment, as you don’t need to purchase inventory or maintain a warehouse. This makes it an accessible option for entrepreneurs with limited resources.
Wide product selection: By partnering with suppliers, you can offer a diverse range of products on your online store, increasing your chances of attracting and retaining customers.
Flexibility: Dropshipping allows you to work from anywhere, as you don’t need to physically handle the products. This makes it an attractive option for those who want to run their business remotely.

Cons of Dropshipping on Takealot

Limited control over product quality: As a dropshipper, you have no control over the manufacturing process or product quality. This can lead to issues with customer satisfaction and returns.
Dependence on suppliers: Your success depends on the reliability and performance of your suppliers. If they fail to deliver on time or provide poor-quality products, it can negatively impact your business.
Competition: With Takealot being a popular platform for dropshipping, there is a high level of competition. This can make it challenging to stand out and attract customers.

How to start dropshipping on Takealot

To start dropshipping on Takealot, you need to have the product at Takealot’s warehouse or your own warehouse.

There is a third option called dropshipping by Takealot, but it requires you to use Takealot branding and labels.

However, there are some success stories of people who have embarked on Takealot dropshipping and selling journey.

To sell on Takealot, you need to ensure your stock is at the DCs and have stock for the lead time.

If you are interested in selling your products online in South Africa, you can follow a tutorial on how to sell on Takealot.

Additionally, you can watch a video on how to dropship on Takealot.

If you are new to dropshipping, you can follow a guide on how to start a dropshipping business.

How to sell on Takealot

To better understand what’s going on here, you need to know how to sell on Takealot.

Here are the general steps:

Create an Account: Set up an account on Takealot as a marketplace seller. Use this link https://www.takealot.com/sell/apply.
List Your Products: Add your products for approval on the Takealot marketplace.
Prepare Your Shipment: Create a shipment, download barcodes, and packing lists for your products.
Book a Delivery: Arrange the delivery of your products to Takealot.
Comply with Requirements: Takealot has specific rules and requirements for sellers, such as the need for barcodes, labeling, and adherence to their guidelines.

You can also apply to become a Takealot Marketplace seller by completing the form on their website.

Additionally, there are online tutorials and videos available that provide a step-by-step guide for beginners on how to start selling on Takealot.

Note that if you’re manufacturing your own products, you will need to obtain barcodes, which may involve purchasing them from a registered company like GS1.

But I guess that won’t be an issue since you will be dropshipping in South Africa.

What are the fees for selling on Takealot?

Well, you didn’t think this would be free, right?

Turns out, Takealot charges sellers various fees for using their platform. Here are the main fees to consider:

Monthly Subscription Fee: A flat fee of R400 (excluding VAT) per month for your seller account, regardless of the number of items you sell.
Fulfilment Fee: This fee is based on the category, weight, and dimensions of your product. It ranges from a minimum of R30 for small items like DVDs or toothbrushes, up to a maximum of R340 for bulky items like fridges.
Storage Fee: Takealot charges storage fees per item, which can accumulate quickly if not closely monitored. They do not charge storage fees for the first 35 stock days, but if your product doesn’t sell within the first month, you could be charged from R4.60 to R2,070 (including VAT) for every subsequent month, depending on your product’s size and how long it spends in the Takealot warehouse.
Penalty Fees: Takealot charges penalty fees for certain transgressions, such as a R75 fee for items being out of stock or late.
Shipping Costs: You will need to cover the cost of shipping your product to the Takealot distribution centers.

It’s essential to understand these fees and factor them into the pricing of your products to ensure a profitable selling experience on Takealot.

Tips for Success in Dropshipping on Takealot

Find trustworthy suppliers

Research and vet potential suppliers to ensure they have a good track record and can provide high-quality products.

This will help you maintain customer satisfaction and minimize returns.

Some of the best local dropshipping suppliers in South Africa include:

ZA Dropshipping
CJDropshipping
BrandsGateway
Men’s Republic Distributors
The Scents
ParcelNinja
Neat Freak
Dropstore
Gadgetgyz
Mantality
Third Wave Distribution
Calasca

These suppliers offer a wide range of products, competitive prices, and fast delivery times.

To get started with dropshipping on Takealot in South Africa, you can choose one of these suppliers and integrate their products into your online store.

Offer excellent customer service

As a dropshipper, you may not have direct control over product delivery or quality. However, you can still provide excellent customer service by addressing their concerns promptly and professionally.

Differentiate your store

To stand out in a competitive market, focus on offering unique products or providing exceptional customer service. This can help you attract and retain customers.

Monitor supplier performance

Regularly evaluate your suppliers’ performance to identify any issues and address them promptly. This will help you maintain a positive relationship with your suppliers and ensure a smooth business operation.

Wrap!

In conclusion, dropshipping on Takealot can be a viable business model with low startup costs and a wide product selection.

However, it also comes with challenges such as limited control over product quality and competition.

To succeed in this model, it’s crucial to find trustworthy suppliers, offer excellent customer service, differentiate your store, and monitor supplier performance.

With these tips, you can increase your chances of success in the dropshipping industry on Takealot.