A report on the online shopping behaviour of youth across Africa found that Nigerians had the highest rates of online shopping in the past years. Additionally, they purchase more diverse products than any other country in the region.
As an online seller, you want to take advantage of the increasing popularity of shopping online for high-profit margins. Finding the most profitable dropshipping products to sell can be the key to business success. By sourcing products that have high demand, you can increase your profits while minimising your risk.
In this blog post, we will explore the top high-profit margin products to sell online. These products are popular and in demand in the African region.
7 Dropshipping Products With High-Profit Margin
Dropshipping can be a great way to start an online retail business. The key is choosing the right product and making sure it's available at your desired location and timing. These factors will decide whether you’ll have a sustainable dropshipping profit margin or not. To help in your business, here are the most profitable products and niches to choose from for your online business.
1. Sports shoes
Fig. 1. Sports footwear is popular because of its versatility
According to reports, the footwear industry in South Africa is in an uptrend. Sales of sneakers have been increasing, with sportswear brands continuing to hold strong positions in footwear. Demand for vegan shoes is also on the rise due to the rising awareness about animal rights and concerns over plastic waste.
Interest in sneakers continues to rise. Also, many people are choosing not to wear anything but canvas or rubber when they go out nowadays. The sportswear industry has been growing for years, and it looks like that trend will continue with global brands like Nike or Adidas still popular among people in Africa today. Local companies are also making their mark by offering vegan options when available.
Sports shoes are included in the list of profitable dropshipping products to add to your business. It has a huge potential of being very profitable as long as they remain in style! The average profit margin may not be 48%, but there's still plenty left over after paying all costs associated with selling these items.
With the harsh climate conditions of Africa and Nigeria in particular, people naturally prefer cold drinks. A fridge or freezer is therefore inevitable for modern homes to make life easier.
There are also many different types of kitchen equipment that you can sell in Kenya, Nigeria, or South Africa, including air fryers, microwave ovens, and electric can openers. You just need to know what's popular among consumers as there is no one-size-fits-all when it comes to their needs.
Fig. 2. Electronics, especially smartphones and smartwatches, are very trendy
The demand for electronics in African countries is high, with many people having more than one device at home. This means there's a large market and these products can be easily sold online. Some top brands to pick from are Samsung, LG, Sony, Canon, etc.
The latest trends in smartwatches are Bluetooth devices that include a built-in camera, step counters, and exercise apps. Statista reports over 141 million units will be sold next year alone with no sign of slowing down or stopping anytime soon either which means there are plenty of opportunities out here waiting just on your doorstep if you're looking to get ahead by staying up
Opportunities in the cellphone and accessories industry are also profitable. Focus on selling high-profit margin dropshipping items like smartphones, batteries, and screen guards for Android users or iPhone owners. There are also earphones, battery chargers, memory cards, power banks, headsets, and other accessories that can sell like hotcakes.
4. Apparel and fashion accessories
Fig. 3. There’s a high demand for women’s apparel and accessories in Africa
The clothing market is a competitive niche but with good growth potential. People love shopping for clothes and other items online because they can order them without having to leave home or wait in line at stores.
The women's apparel industry is forecasted to grow at a rate of 4.81% per year through 2022-2026, resulting in an estimated $804 million dollars earned this year alone. The high-profit margin dropshipping items in this niche are the major driving force behind the growth of online boutiques specifically tailored towards selling only women’s clothing.
To stand out from your competitors, it's important to choose high-quality products to sell online that are both original and affordable. Look for clothes that people can't find anywhere else. Selling unique products of specific brands such as Zara or H&M can be a viable option. You could also have multiple lines at once and compete with other stores in your area.
Aside from clothes, accessories like wigs, weaves, and extensions have a huge market. Human-hair products, as well as synthetic fibres like lace front baskets, are popular among Nigerians. On that note, cosmetic shampoos or relaxers designed specifically for maintaining proper care of wigs and extensions are also in demand in the area.
The coronavirus (COVID-19) outbreak had a significant impact on consumers' shopping habits in Africa. According to a report from Statista, 70% of Nigerian eCommerce users said they were planning fewer supermarket trips even after the pandemic. The same thing goes for 65% of South Africans and 64% of Kenyans. Respondents said they prefer shopping online for groceries over going to the supermarket.
If you’re looking for dropshipping products with high-profit margin, focus on snacks and other canned or packaged goods that don’t easily perish. Imported snacks not commonly found in local stores can also yield a good profit margin.
6. Baby products
The expected revenue for the baby care market is projected to reach $73.8 billion by 2022 according to Statista. This means there’s plenty of room left just in case you want to start your online business in this niche.
If you plan to dive into this area, high-profit margin dropshipping items like bathing-related items, health & wellness supplies such as diapers and wipes, and nursery decoration ideas including cribs are good choices to start with. Other bestsellers are cribs, car seats which can be used for travel when kids get older, diapers/wipes for potty training, and feeding bottles.
7. Skincare products
Fig. 4. Many online influencers promote organic and environment-friendly skincare products
The beauty industry is a huge market and makeup has been popular for years according to Google Trends. The skincare industry is worth ten billion rands as of 2021 and it's projected to grow by 4%. The most dominant brands are Unilever, Johnson & Johnson (J&J), and Estee Lauder.
Skincare products can be categorised into two areas: face care products which include moisturisers and creams, and body care products which include lotions and other liquid-based goods such as shower gels.
These days, people pay attention to less harmful products from skincare brands. Many social media influencers choose this niche because it has dropshipping products with a high-profit margin that sell well through channels such as Instagram or YouTube.
Dropshipping can be a great way to start an online retail business. The only thing left to do is to find profitable dropshipping products and ensure they're available in your area. The key to yielding a high margin is making sure that you don't end up losing money on shipping costs.
Start Your Dropshipping Business Today With Castlly Marketplace
Dropshipping is a wonderful and sustainable business model that can help you stay afloat in the long run. However, it's important not to focus solely on short-term profits when selling online. Customer satisfaction through order fulfilment plays an encouraging role in this type of selling strategy. One of the ways to make it easy for customers to navigate your online business is by using Castlly Marketplace.
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