With a 2025 market size estimated at $558 billion, the dropshipping business is changing how orders get fulfilled. More and more Africans are getting into the business. But knowing how to win chargebacks as a dropshipper makes all the difference, according to research. If you canvas the hashtags on Twitter, you might find pundits speculating that dropshipping has no future. They say that the dropshipping business model is dead, that the market is saturated, and that the cost of fraud and chargebacks is too high. But that’s not true. Factual data shows an impressive spike across various verticals of the dropshipping business, with a projected Compound Annual Growth Rate (CAGR) of around 29% from 2020 to 2025. The dropshipping business model is popular among early-stage entrepreneurs, including in Africa, because it’s an easy way to test the waters in becoming your own boss, learn the downside in different markets and products, and earn a decent revenue while at it. And as you don’t need so much startup capital to set up a dropshipping business, you can quickly launch a profitable venture without ever worrying about raising venture capital funding.
SOURCE: TRUE AFRICA