Have you ever thought what dropshipping is, or why you ought to consider dropshipping in Nigeria? Well, to begin with, dropshipping is a business project that is more cost-effective than wholesale. With dropshipping, you need to place an order with your provider when a client has placed an order with you.
It is very lucrative to start a dropshipping business in Nigeria. It’s a bold first step towards entrepreneurship. You will be able to sell customers different products, set your prices and market your brand.
What is dropshipping?
Dropshipping is a retail channel in which the manufacturer does not hold in stock the items it sells. Instead, the selling process involves the seller buying the item from a third party and directly delivering it to the customer. It is a business model that enables a company to operate without maintaining an inventory, bulk stocking goods, or even providing the products to customers.
Wholesale Vs Dropshipping
The major distinction between dropshipping and wholesale is that stock inventory is not owned or stored by the seller. Instead, the merchant purchases stock as required from a third party, usually another wholesaler or producer, to satisfy customer orders. A consumer, manufacturer or wholesale merchant may also be their client. Starting a dropshipping business doesn’t require a significant cash investment in advance. What you need is a small investment to make an order along with the payment from your clients.
See also – Starting a Business: Simple Things You Must Know
How to begin a dropshipping business in Nigeria
The following steps on how to launch a profitable dropshipping company in Nigeria are below:
Pick a product for sale
Choosing the commodity you want to sell is the first step towards this. Many individuals are also tempted to begin selling something that they can think of. It should be in the back of your mind that dropshipping is a business and like any other business, you need to do detailed research alongside a business plan about how to be successful in your business. One means of doing this is by searching for winning items to market.
You should keep in mind that you can’t just start selling every item you see when looking for products to market. Try to check the over-time demand for such things by using Google Trend as much as possible.
It needs to be on the trend in the industry. That is, the demand for it must be reasonably high, or at least very steady, and there should be limited competition for it. You don’t need to have loads of items on your website to be competitive in this business model. Hot products around a specific niche should be your priority.
Also, getting a niche store is fine. This will enable you to easily ‘Up-sell and Cross-sell’ clients with products similar to or essential. This implies having your shop around unique kinds of items. An excellent example of a niche store is a shop around wireless devices.
Find a trusted supplier
The position of suppliers cannot be over-emphasized in the dropshipping business. This is because they are the buyers of the goods you’re selling. So, it’s fair to assume that your supplier’s output defines your business’s performance. There won’t be a commodity for you to dropship without a reliable supplier. So you should take them seriously as well.
Checking their seller rate is among the ways to spot good suppliers on AliExpress. You wouldn’t want to go to a seller with a score below 90%. Most definitely, AliExpress is the best choice for anyone interested in Nigerian dropshipping. Except that you have a reputable manufacturer or seller who is willing to work with you in Nigeria.
In this situation, what you’ll have to do is encourage their goods to send orders to them, and within Nigeria, they’ll be the one to manage the logistics. Besides that, your best guess is AliExpress! AliExpress goods are relatively inexpensive, providing the company with benefit scalability.
The good thing is that AliExpress is used by over 80% of drop shippers, so this could be your best option in Nigeria. Nonetheless, using AliExpress still comes with its challenges! That, of course, is the problem of extended delivery times.
Select your selling platform
You require a platform to manage your dropshipping business. You can align with popular e-commerce stores that allow you to sell on their site, such as Jumia & Konga. Platforms that require a limited resource to be managed are easier to use. You can make use of social media to broadcast and sell your goods. Then you can introduce your website as part of your business scale.
Grow your business
You need all the measures applicable for marketing after you have selected a forum for your dropshipping business. It isn’t excellent for business to get the goods consumers want without proper marketing to get the product in their faces.
You can make use of the accessibility of social media marketing and promotional resources to boost your business. There are advertising resources for Facebook, Instagram, Twitter and other outlets that can place any company in the global space.
Get your finances under control
As an entrepreneur, you must take money management seriously at any point in your business. This allows you to define the financial weaknesses that may tarnish the company as a nip in the bud. Learn as much as possible to keep personal finances and company finances apart.
Advantages of dropshipping in Nigeria
Below are several benefits of dropshipping in Nigeria:
- It takes little capital to start up
- Running is very convenient
- Creating profit is easy
Unlike other types of mini-importation in Nigeria, you can operate the company from the comfort of your home without a storage unit for goods or products.
Frequently asked questions (FAQs)
Below are a few frequently asked questions:
Does dropshipping work in Nigeria?
Yes, dropshipping operates quite in Nigeria. We do have a variety of dropshipping merchants and entrepreneurs in Nigeria. We also have some dropshipping merchants to several other countries from Nigeria.
Is dropshipping lucrative in Nigeria?
In Nigeria, dropshipping is a rewarding venture; most Nigerians have the information needed to get started. Wholesale, as well as traditional import business operations, are overly crowded, and it can be a little daunting to function in that room. This makes a dropshipping business a worthwhile alternative business idea in Nigeria that is more cost-effective.
Dropshipping business is a lucrative business for someone who intends to invest in it. Tightening all the loose ends in every deal is essential. Please ensure that you get adequate information at regular intervals about your suppliers to remain informed on market trends.
You should read this and learn – How to Write a Business Plan
How to start dropshipping in Nigeria – investsmall
How to start a dropshipping business in Nigeria – torchbankz