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  1. #21
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    Default Re: Tak to me about drop shipping

    Quote Originally Posted by lizardalpha View Post
    He did state LOCAL PRODUCTS
    Yes, so where is the value add?
    Jakes Louw
    2012 Jeep Sahara Unlimited 3.6 V6
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  2. #22
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    Default Re: Tak to me about drop shipping

    Quote Originally Posted by jelo View Post
    Yes, so where is the value add?
    I've become aware of products that are being produced locally that are not being marketed very well at all. Different suppliers, niche products but all under the same industry umbrella as it were, my intention is to create a central hub where I can market these products. That way maybe the little operator can grow his business and benefit and I can do the same.

    The reason I asked about drop shipping is it's already a built website with payment and all that included. The reason I asked if I had choice over my suppliers is that I don't want the headaches of bringing inferior, delayed products in.

    Doing it the way I want to, is so that every item on my website has come from a manufacturer that I have met and shaken his hand.

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  4. #23
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    Default Re: Tak to me about drop shipping

    Quote Originally Posted by Chopped View Post
    I've become aware of products that are being produced locally that are not being marketed very well at all. Different suppliers, niche products but all under the same industry umbrella as it were, my intention is to create a central hub where I can market these products. That way maybe the little operator can grow his business and benefit and I can do the same.

    The reason I asked about drop shipping is it's already a built website with payment and all that included. The reason I asked if I had choice over my suppliers is that I don't want the headaches of bringing inferior, delayed products in.

    Doing it the way I want to, is so that every item on my website has come from a manufacturer that I have met and shaken his hand.
    Could you sell those products on takealot?

  5. #24
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    Default Re: Tak to me about drop shipping

    Quote Originally Posted by SBSP View Post
    Could you sell those products on takealot?
    That's always an option I suppose but I want to be more than that. I want to build a recognized brand selling good stuff.
    Takealot will possibly be one avenue.

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  7. #25
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    Default Re: Tak to me about drop shipping

    Apologies, not wanting to be the nay-sayer in the room. I have a passive investment in an ecommerce retail business. It is not drop shipping and we keep a lot of imported-only stock locally, i.e we buy our stock and deliver in 1-3 days in SA with courier.

    Your idea unfortunately has many challenges, people want their product now, they want great, personalised customer service and there is no margin for you supporting local suppliers (unfortunately).

    I am giving you the realistís perspective. A lot of work for no or very little financial return.

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  9. #26
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    Default Re: Tak to me about drop shipping

    Quote Originally Posted by Chopped View Post
    I've become aware of products that are being produced locally that are not being marketed very well at all. Different suppliers, niche products but all under the same industry umbrella as it were, my intention is to create a central hub where I can market these products. That way maybe the little operator can grow his business and benefit and I can do the same.

    The reason I asked about drop shipping is it's already a built website with payment and all that included. The reason I asked if I had choice over my suppliers is that I don't want the headaches of bringing inferior, delayed products in.

    Doing it the way I want to, is so that every item on my website has come from a manufacturer that I have met and shaken his hand.
    You can use a Shopify or GoDaddy to build a website and not link it through their fulfillment. What I am saying is setting up an ecommerce website with payment and all that is pretty simple.

    Once you get orders you can just send an email onto your supplier with payment and they can ship. That's all drop shipping is, not holding actual stock.

    If you have a view that a niche exist with existing products that aren't well marketed, and you will be able fill that niche go ahead. A online shop is no different to any other business really, you need to answer the above first. How you fullfill orders is a secondary question.

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  11. #27
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    Default Re: Tak to me about drop shipping

    Quote Originally Posted by SBSP View Post
    Could you sell those products on takealot?

    I have sold through Takealot. You would need serious margins to be able to resell via them as the fees are astronomical. Also they are very prescriptive. And to top it loads of reports where if a product sells well they cut you out and start dealing with the supplier directly.

    You can even ask Dirk to build and host a site for you. Just remember marketing is expensive, places like FB really limit your reach on posts that are not boosted/ paid these days.
    Wicus Diedericks

  12. #28
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    Default Re: Tak to me about drop shipping

    Quote Originally Posted by Wicd View Post
    I have sold through Takealot. You would need serious margins to be able to resell via them as the fees are astronomical. Also they are very prescriptive. And to top it loads of reports where if a product sells well they cut you out and start dealing with the supplier directly.

    You can even ask Dirk to build and host a site for you. Just remember marketing is expensive, places like FB really limit your reach on posts that are not boosted/ paid these days.
    I've always wondered about the fees on Takealot for 3rd party sellers, what do they charge sellers?

    To the op, dropshipping as a business model mainly seems to apply to reselling goods sourced from China and that doesn't work in Sa because the only cheap/feasible shipping option is using the Post Office and that's broken. It works well in places like the US and Europe where postal delivery times from China can be a week or 2.

    What you can do is use a fufillment partner, Parcel Ninja and uAfrica I think are 2 local options, Takealot would also qualify as that in a sense. What they do is they store your inventory in their warehouses and all orders get routed directly to them from your online webstore and they pack and ship the goods on your behalf.

    Often when starting out it is typically better to do all the fufillment yourself, it's cheaper and you can guarantee the service levels which is often what differentiates online shops. A problem with using fufillment partners is they are charging you a premium for storage space and if stock isn't moving quickly it's easy for those costs to increase to the point that your cost of sales makes your profit near nothing. Whereas storing stock in the Garage or a room at home shouldn't cost anything other than the inconvenience of the space used.
    Last edited by Skylark; 2021/10/20 at 08:24 AM.

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  14. #29
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    Default Re: Tak to me about drop shipping

    I've always wondered about the fees on Takealot for 3rd party sellers, what do they charge sellers?


    You have an account fee of R300 pm, then you have a success fee 0f between 5 and 18% and then a fulfillment fee of between R15 and R85 per sale. As my items where automotive/ DIY fees where 10% - 12% per sale.

    BidorBuy is somewhat cheaper at 8% and a monthly fee. And if you have a good account manager or marketing budget you can get pretty good marketing from BoB
    Wicus Diedericks

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  16. #30
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    Default Re: Tak to me about drop shipping

    Guys, thanks to all of you for taking the time to answer.
    I am not rushing anything, I will go through everything that has been said, probably more than once while I research and then I'll decide.
    I do know that independence is the way I want to go, I do need to make sure that I'm going in the right direction.

    Thanks again guys.

  17. #31
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    Default Re: Tak to me about drop shipping

    Quote Originally Posted by Wicd View Post
    [/COLOR]

    You have an account fee of R300 pm, then you have a success fee 0f between 5 and 18% and then a fulfillment fee of between R15 and R85 per sale. As my items where automotive/ DIY fees where 10% - 12% per sale.

    BidorBuy is somewhat cheaper at 8% and a monthly fee. And if you have a good account manager or marketing budget you can get pretty good marketing from BoB
    Interesting, so the fulfilment fee that Takealot charges is basically the shipping costs they pass on to you and varies according to the size/weight of the item?

    Baring the R300pm lets say an Automotive item sells for R1000 on Takealot, you pay 10% or R100 in fees, say for R50 for fulfilment and come out with R850 that gets paid out to you?

    How to returns work, who takes the loss if it's just buyers remorse and who makes the call on the condition of what is returned and the merits of a return if its due to a fault?
    Last edited by Skylark; 2021/10/20 at 09:11 AM.

  18. #32
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    Default Re: Tak to me about drop shipping

    Quote Originally Posted by Skylark View Post
    Interesting, so the fulfilment fee that Takealot charges is basically the shipping costs they pass on to you and varies according to the size/weight of the item?

    Baring the R300pm lets say an Automotive item sells for R1000 on Takealot, you pay 10% or R100 in fees, say for R50 for fulfilment and come out with R850 that gets paid out to you?

    How to returns work, who takes the loss if it's just buyers remorse and who makes the call on the condition of what is returned and the merits of a return if its due to a fault?
    Returns are managed by Takealot. Fortunately I didn't have a return, but having dealt with how their storage works it will be for your account. I had items damaged by their staff and I had to pick it up on my cost and replace. You also need to deliver on your cost to the Cape Town and JHB warehouses and you also get charged storage on stock that does not move in 30 days.
    Wicus Diedericks

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  20. #33
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    Default Re: Tak to me about drop shipping

    Quote Originally Posted by Wicd View Post
    Returns are managed by Takealot. Fortunately I didn't have a return, but having dealt with how their storage works it will be for your account. I had items damaged by their staff and I had to pick it up on my cost and replace. You also need to deliver on your cost to the Cape Town and JHB warehouses and you also get charged storage on stock that does not move in 30 days.
    What are the storage fees like?

  21. #34
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    Default Re: Tak to me about drop shipping

    Quote Originally Posted by Wicd View Post
    Returns are managed by Takealot. Fortunately I didn't have a return, but having dealt with how their storage works it will be for your account. I had items damaged by their staff and I had to pick it up on my cost and replace. You also need to deliver on your cost to the Cape Town and JHB warehouses and you also get charged storage on stock that does not move in 30 days.

    Returns on Takealot can become a nightmare. Especially when you try and collect the return stock from the Takealot DCs.

    They have a "changed my mind" option for returns. So your stock can also come back as second hand.

    We also had damaged stock come back from their warehouse. To then go through the process of putting in a claim is also not worth it.

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