Africa Dropshipping Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Product Type (Toys, Hobby and DIY, Furniture and Appliances, Food and Personal Care, Electronics and Media, Fashion, and Others) and Organization Size (Small and Medium-Sized Enterprises, and Large Enterprises)
Market Introduction
Dropshipping is a type of retail fulfilment model where a store does not need to keep the goods in stock. Instead, with the implementation of dropshipping method, they purchase the items from a third-party and ship them directly to end users; thus, the vendor does not have to manage the product directly. Moreover, it is one of the methods for making money online without investing or holding any inventory. Dropshipping is implemented in numerous industries to offer various types of products, such as electronics, personal care, and toys. It ensures the smooth delivery of goods to consumers. The introduction of advanced technologies has offered new opportunities to dropshipping model providers to move from a traditional business mode to an online business mode. The major advantage of dropshipping is one can start an e-commerce store without investing a huge amount of money in stock.
The dropshipping market is likely to experience substantial growth rate owing to a surge in online shopping and the growing trend of cross-border e-commerce trade. The rising penetration of smartphones and rising disposable income in emerging markets are also driving the demand for dropshipping services.
Market Overview and Dynamics
The Africa dropshipping market 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. With the constant growth of cross-border e-commerce, numerous sellers are continually expanding their overseas markets, as well as stimulating the development of marketing channels. Simultaneously, the penetration of smartphones and the internet has significantly encouraged the growth of businesses across the Africa region. Africa region comprises 54 countries, including South Africa and Nigeria, with a total population of ~1.34 billion. As per secondary sources, the population and economy of three nations, including Nigeria, South Africa and Egypt, are significant. The average age of residents in these countries is approximately 18.1 years, 27.6 years, and 24.6 years. This represents the huge presence of the youth population in these countries. Also, the data reveals that the ratio of urban population to total population in these countries is 51.96%, 67.35%, 42.78%, respectively. It represents that the percentage of urban population is comparable to the rural population, and the consumption group is led by youth. Thus, sellers can fuel their marketing techniques to capture these people's psychological characteristics and formulate analogous strategies. The African region is witnessing substantial growth in e-commerce, with several retailers shifting their attention to countries such as South Africa, Kenya, and Nigeria. There are only a few major e-commerce marketplaces in the region, while internet penetration in the region is high. According to data by World Bank, the internet penetration in South Africa by the end of 2019 was 68.2%. Also, several local retailers are incapable of meeting the rising demand, thereby driving online shoppers to purchase cross-border products. For instance, according to Statista, the Jumia e-commerce website in Nigeria receives the largest website traffic among other e-commerce platforms in Africa. Similarly, the Takealot.com platform in South Africa received as many as 12.2 million visitors in July 2021. This shows that a large population in these regions are increasingly indulging in online buying behavior and shows affinity towards e-commerce businesses. The growth trend is evidently higher for dropshipping businesses and importers. For instance, in 2019, 62% of South African online shoppers purchased from an overseas retailer, compared to 43% in 2018. Furthermore, major dropshipping players in this region are offering huge discounts and offers on the sale of premium luxury products, which attracts a broader customer base. These factors are expected to propel the growth of the dropshipping market in the region.
Key Market Segments
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. The electronics and media segment leads the market. The rising innovation in this segment is expected to boost market growth in the coming years. Electronics and media are a core part of nearly every household in the advancing African economies. This segment includes consumer electronics, movies, music, and games. Consumer electronics comprises all electronics, such as televisions and DVD players, and communications devices, such as smartphones and laptops. The dropshipping of electronics and media is gaining huge popularity; several dropshippers of electronics and media have capitalized on the ready market of electronic consumers gain profits. Consumer electronics drop shippers can also sell tablets and phone covers to buyers. With the opportunity of making more sales and profits, dropship electronics have become popular among many individuals.
The dropshipping market, by organization size, is segmented into small and medium-sized enterprises, and large enterprises. The small and medium enterprise segment led the dropshipping market in 2020. As per our scope, small enterprises are those with 1–100 employees, while medium-sized enterprises are those with 101–500 employees. Small and medium Enterprises play a significant role in all economies, primarily in their development. As per the World Bank July 2019, SMEs contribute to ~40% of gross domestic product (GDP) and ~60% of total employment in the emerging economies. Dropshipping helps numerous entrepreneurs who are trying to find a way of an uncertain future. It ensures that the products, inventory, orders, and shipping needs are taken care of; hence, this business model has gained significant popularity among suppliers in Africa. The growing penetration of the Internet has opened up a wide range of opportunities for small businesses, and with dropshipping, it has become possible for small and medium enterprises to run businesses online, which also enables them to reach to niche audiences.
Major Sources and Companies Listed
A few major primary and secondary sources referred to for preparing this report on the AFRIACA dropshipping market are company websites, annual reports, financial reports, national government documents, and statistical databases. Major companies listed in the AFRIACA dropshipping market report include BrandsGateway, Calasca, Dropstore, Men's Republic, Neat Freak, PARCELNINJA, Planet54, The Scents SA, Third Wave Distribution, and Gadgetgyz Online.
1. Introduction
1.1 Scope of the Study
1.2 The Insight Partners Research Report Guidance
1.3 Market Segmentation
1.3.1 Dropshipping Market – By Product Type
1.3.2 Dropshipping Market – By Organization Size
1.3.3 Dropshipping Market- By Region
2. Key Takeaways
3. Research Methodology
3.1 Coverage
3.2 Secondary Research
3.3 Primary Research
4. Dropshipping Market Landscape
4.1 Market Overview
4.2 PEST Analysis
4.2.1 Africa
4.3 Ecosystem Analysis
4.4 Expert Opinion
5. Dropshipping Market – Key Market Dynamics
5.1 Market Drivers
5.1.1 Growing E-Commerce Industry
5.1.2 Increasing Demand for Consumer Electronics
5.2 Market Restraints
5.2.1 Growing Security Concerns
5.3 Market Opportunities
5.3.1 Increasing Internet Penetration in Africa
5.4 Future Trends
5.4.1 Integration of AI for Dropshipping Business
5.5 Impact Analysis of Drivers and Restraints
6. Dropshipping Market – Africa Analysis
6.1 Dropshipping Market Africa Overview
6.2 Dropshipping Market – Revenue and Forecast to 2028 (US$ Million)
6.3 Market Positioning – Five Key Players
7. Dropshipping Market Analysis – By Product Type
7.1 Overview
7.2 Dropshipping Market Breakdown, by Product Type, 2019 & 2027
7.3 Toys, Hobby and DIY
7.3.1 Overview
7.3.2 Toys, Hobby and DIY Market Revenue and Forecast to 2028 (US$ Million)
7.4 Furniture and Appliances
7.4.1 Overview
7.4.2 Furniture and Appliances Market Revenue and Forecast to 2028 (US$ Million)
7.5 Food and Personal Care
7.5.1 Overview
7.5.2 Food and Personal Care Market Revenue and Forecast to 2028 (US$ Million)
7.6 Electronics and Media
7.6.1 Overview
7.6.2 Electronics and Media Market Revenue and Forecast to 2028 (US$ Million)
7.7 Fashion
7.7.1 Overview
7.7.2 Fashion Market Revenue and Forecast to 2028 (US$ Million)
7.8 Others
7.8.1 Overview
7.8.2 Others Market Revenue and Forecast to 2028 (US$ Million)
8. Dropshipping Market Analysis – By Organization Size
8.1 Overview
8.2 Dropshipping Market Breakdown, by Organization Size, 2019 & 2027
8.3 Small and Medium Enterprises
8.3.1 Overview
8.3.2 Small and Medium Enterprises Market Revenue and Forecast to 2028 (US$ Million)
8.4 Large Enterprises
8.4.1 Overview
8.4.2 Large Enterprises Market Revenue and Forecast to 2028 (US$ Million)
9. Dropshipping Market – Geographic Analysis
9.1 Africa: Dropshipping Market, By Country
9.1.1 Africa: Dropshipping Market, By Country
9.1.1.1 Nigeria: Dropshipping Market – Revenue and Forecast to 2028 (US$ Million)
9.1.1.1.1 Nigeria: Dropshipping Market, By Product Type
9.1.1.1.2 Nigeria: Dropshipping Market, By Organization Size
9.1.1.2 Kenya: Dropshipping Market – Revenue and Forecast to 2028 (US$ Million)
9.1.1.2.1 Kenya: Dropshipping Market, By Product Type
9.1.1.2.2 Kenya: Dropshipping Market, By Organization Size
9.1.1.3 South Africa: Dropshipping Market – Revenue and Forecast to 2028 (US$ Million)
9.1.1.3.1 South Africa: Dropshipping Market, By Product Type
9.1.1.3.2 South Africa: Dropshipping Market, By Organization Size
9.1.1.4 Rest of Africa: Dropshipping Market – Revenue and Forecast to 2028 (US$ Million)
9.1.1.4.1 Rest of Africa: Dropshipping Market, By Product Type
9.1.1.4.2 Rest of Africa: Dropshipping Market, By Organization Size
10. Impact of COVID-19 Pandemic on Dropshipping Market
10.1 Overview
11. Industry Landscape
11.1 Market Initiative
11.2 Merger and Acquisition
11.3 New Development
12. Company Profiles
12.1 BrandsGateway
12.1.1 Key Facts
12.1.2 Business Description
12.1.3 Products and Services
12.1.4 Financial Overview
12.1.5 SWOT Analysis
12.1.6 Key Developments
12.2 Calasca
12.2.1 Key Facts
12.2.2 Business Description
12.2.3 Products and Services
12.2.4 Financial Overview
12.2.5 SWOT Analysis
12.2.6 Key Developments
12.3 Dropstore
12.3.1 Key Facts
12.3.2 Business Description
12.3.3 Products and Services
12.3.4 Financial Overview
12.3.5 SWOT Analysis
12.3.6 Key Developments
12.4 Men's Republic
12.4.1 Key Facts
12.4.2 Business Description
12.4.3 Products and Services
12.4.4 Financial Overview
12.4.5 SWOT Analysis
12.4.6 Key Developments
12.5 Neat Freak
12.5.1 Key Facts
12.5.2 Business Description
12.5.3 Products and Services
12.5.4 Financial Overview
12.5.5 SWOT Analysis
12.5.6 Key Developments
12.6 PARCELNINJA
12.6.1 Key Facts
12.6.2 Business Description
12.6.3 Products and Services
12.6.4 Financial Overview
12.6.5 SWOT Analysis
12.6.6 Key Developments
12.7 Planet54
12.7.1 Key Facts
12.7.2 Business Description
12.7.3 Products and Services
12.7.4 Financial Overview
12.7.5 SWOT Analysis
12.7.6 Key Developments
12.8 The Scents SA
12.8.1 Key Facts
12.8.2 Business Description
12.8.3 Products and Services
12.8.4 Financial Overview
12.8.5 SWOT Analysis
12.8.6 Key Developments
12.9 Third Wave Distribution
12.9.1 Key Facts
12.9.2 Business Description
12.9.3 Products and Services
12.9.4 Financial Overview
12.9.5 SWOT Analysis
12.9.6 Key Developments
12.10 Gadgetgyz Online
12.10.1 Key Facts
12.10.2 Business Description
12.10.3 Products and Services
12.10.4 Financial Overview
12.10.5 SWOT Analysis
12.10.6 Key Developments
13. Appendix
13.1 About The Insight Partners
13.2 Word Index
LIST OF TABLES
Table 1. Dropshipping Market – Revenue and Forecast to 2028 (US$ Million)
Table 2. Nigeria Dropshipping Market, By Product Type – Revenue and Forecast to 2028 (US$ Million)
Table 3. Nigeria Dropshipping Market, By Organization Size – Revenue and Forecast to 2028 (US$ Million)
Table 4. Kenya Dropshipping Market, By Product Type – Revenue and Forecast to 2028 (US$ Million)
Table 5. Kenya Dropshipping Market, By Organization Size – Revenue and Forecast to 2028 (US$ Million)
Table 6. South Africa Dropshipping Market, By Product Type – Revenue and Forecast to 2028 (US$ Million)
Table 7. South Africa Dropshipping Market, By Organization Size – Revenue and Forecast to 2028 (US$ Million)
Table 8. Rest of Africa Dropshipping Market, By Product Type – Revenue and Forecast to 2028 (US$ Million)
Table 9. Rest of Africa Dropshipping Market, By Organization Size – Revenue and Forecast to 2028 (US$ Million)
Table 10. List of Abbreviation
LIST OF FIGURES
Figure 1. Dropshipping Market Segmentation
Figure 2. Dropshipping Market Segmentation – By Geography
Figure 3. Africa Dropshipping Market Overview
Figure 4. Electronics and Media Segment Held the Largest Market Share
Figure 5. Small & Medium Enterprise Segment Held the Largest Market Share
Figure 6. Nigeria to Show Great Traction During Forecast Period
Figure 7. Africa – PEST Analysis
Figure 8. Expert Opinion
Figure 9. Dropshipping Market: Impact Analysis of Drivers and Restraints
Figure 10. Geographic Overview of Dropshipping Market
Figure 11. Dropshipping Market – Revenue and Forecast to 2028 (US$ Million)
Figure 12. Dropshipping Market Breakdown, by Product Type (2020 and 2028)
Figure 13. Toys, Hobby and DIY Market Revenue and Forecast to 2028 (US$ Million)
Figure 14. Furniture and Appliances Market Revenue and Forecast to 2028 (US$ Million)
Figure 15. Food and Personal Care Market Revenue and Forecast to 2028 (US$ Million)
Figure 16. Electronics and Media Market Revenue and Forecast to 2028 (US$ Million)
Figure 17. Fashion Market Revenue and Forecast to 2028 (US$ Million)
Figure 18. Others Market Revenue and Forecast to 2028 (US$ Million)
Figure 19. Dropshipping Market Breakdown, by Organization Size (2020 and 2028)
Figure 20. Small and Medium Enterprises Market Revenue and Forecast to 2028 (US$ Million)
Figure 21. Large Enterprises Market Revenue and Forecast to 2028 (US$ Million)
Figure 22. Africa Dropshipping Market Revenue Share, By Country (2020 and 2028)
Figure 23. Nigeria: Dropshipping Market – Revenue and Forecast to 2028 (US$ Million)
Figure 24. Kenya: Dropshipping Market – Revenue and Forecast to 2028 (US$ Million)
Figure 25. South Africa: Dropshipping Market – Revenue and Forecast to 2028 (US$ Million)
Figure 26. Rest of Africa: Dropshipping Market – Revenue and Forecast to 2028 (US$ Million)
Figure 27. Impact of COVID-19 Pandemic in Middle East and Africa Country Markets
- BrandsGateway
- Calasca
- Dropstore
- Men's Republic
- Neat Freak
- PARCELNINJA
- Planet54
- The Scents SA
- Third Wave Distribution
- Gadgetgyz Online
- Save and reduce time carrying out entry-level research by identifying the growth, size, leading players and segments in the dropshipping market
- Highlights key business priorities in order to assist companies to realign their business strategies
- The key findings and recommendations highlight crucial progressive industry trends in the dropshipping market thereby allowing players across the value chain to develop effective long-term strategies
- Develop/modify business expansion plans by using substantial growth offering developed and emerging markets
- Scrutinize in-depth Africa market trends and outlook coupled with the factors driving the market, as well as those hindering it
- Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing and distribution