Selling on Takealot: Five Key Things You Need to Know 2023

If you’re an e-commerce entrepreneur or a small business owner looking to expand your market reach, Takealot, one of the largest online marketplaces in South Africa, is an excellent platform to consider. However, before you start selling on Takealot, it’s essential to understand the platform’s requirements to ensure your products meet their standards and avoid getting rejected.

In this article, we’ll explore the five essential things you need to have in place before you start selling on Takealot. These include having a registered business, having quality product images and descriptions, pricing your products correctly, managing your inventory effectively, and ensuring your products meet Takealot’s compliance requirements. By following these guidelines, you’ll be well on your way to successfully selling your products on Takealot and expanding your business.

1. Register Your Business

Registering your business is a critical step when it comes to selling on Takealot. It is important to note that Takealot requires all its sellers to have a registered business before they can start selling on the platform. You cannot use your personal information to register on Takealot. If you try to do so, your application will most likely be rejected.

To register your business, you will need to follow the required legal processes in your country of residence. This usually involves registering your business with the relevant government authorities, obtaining a tax ID number, and acquiring any necessary licenses and permits. This process can vary depending on your location and the type of business you are running.

Having a registered business not only ensures that you meet Takealot’s requirements, but it also provides you with a level of credibility and legitimacy as a business owner. Takealot and its customers will be more likely to trust you if you have a registered business, which could help you to attract more sales and grow your business.

Overall, registering your business is a crucial step in the process of selling on Takealot. Make sure you take the time to follow the legal requirements in your location, as this will ensure that your application is approved and that you can start selling your products on Takealot as quickly as possible.

2. Tax

Taxes are an important consideration that you should not overlook. Takealot is a legitimate and reputable online marketplace that operates in accordance with the law. Therefore, it is imperative that you understand your tax obligations as a seller.

It is important to note that Takealot will pay taxes on behalf of the sellers on the platform, but they will require you to provide them with your tax information. Failure to comply with the tax laws in your country could result in penalties or even legal action.

To ensure that your taxes are in order, it’s recommended that you consult with a tax professional who can advise you on the best course of action. They can also help you to register with the relevant tax authorities and ensure that you are paying the correct amount of taxes.

3. Stock in Hand

Having stock in hand is critical to your success. Takealot requires that you have your inventory available before you start selling on their platform. This is because they want to ensure that they can fulfill customer orders quickly and efficiently. You’ll need to send 70% of your stock to the Johannesburg warehouse and 30% to the Cape Town warehouse.

In addition to having stock available, it’s also important to have a clear and accurate description of your product. Takealot will review your product listing before approving your account, and having a clear description will increase your chances of being approved. Your product description should include all relevant details such as dimensions, weight, and any unique features. Be sure to include high-quality images that show your product from multiple angles and highlight any special features.

It’s worth noting that if you’re selling a product that’s already listed on Takealot, you’ll need to ensure that your pricing is competitive. Takealot is known for its competitive pricing, and if your prices are significantly higher than other sellers, it’s unlikely that you’ll make many sales. Make sure you’re familiar with the pricing of similar products and set your prices accordingly.

4. Understanding the Backend

It’s essential to understand the backend of the platform. Once your application is approved, you’ll be required to go through a course to learn how to code everything. The backend of Takealot refers to the software and technology that powers the platform. This includes how to upload your products, manage inventory, and fulfill orders.

It’s important to understand the technical requirements of the Takealot platform, such as the file formats for product information and images, as well as the integration of the Takealot API. Familiarizing yourself with the backend of the platform will ensure that your products are listed correctly and that your orders are fulfilled seamlessly.

Understanding the backend is crucial for ensuring that your products are successfully listed, and you don’t run into any technical issues along the way.

5. Do Your Research

This means researching the market demand for your product, as well as the competition on the platform. You should start by identifying what products are popular on Takealot and which ones are underserved. By finding a gap in the market, you may be able to offer a unique product or service that will stand out to customers.

Additionally, you should research the pricing of similar products and see what the average profit margin is. This will help you determine if the product is viable for your business and what price point you should aim for.

It’s also essential to ensure that you have enough capital to cover your stock needs. Takealot requires you to have stock in hand before you can register, so it’s important to calculate how much inventory you will need to cover your sales. Generally, it’s recommended to have at least 5k to 10k worth of stock, depending on the product you’re selling.

Overall, doing thorough research before selling on Takealot can help you make informed decisions about your business and increase your chances of success on the platform.

Conclusion

In conclusion, selling on Takealot requires some preparation. You need to have a registered business, get your taxes in order, have stock in hand, understand the backend of Takealot, and do your research. By following these five key things, you’ll increase your chances of being approved and having a successful selling experience on Takealot. Good luck!