This is a detailed guide on how to start a dropshipping business in Nigeria.
Nigeria has many of its citizens struggling and scared to start-up SMEs and large-scale enterprises.
But with the fast-growing knowledge of the power of entrepreneurship, many young minds are bent on harnessing the power to improve their lifestyles.
One way, therefore, to ease the difficulty of starting up a full fledge business is to venture into Dropshipping business.
As you may have already heard, dropshipping is one of the best ways of making money online in Nigeria.
If you wish to learn how to start a dropshipping business in Nigeria, this guide will help.
In this guide, I will be telling you what a dropshipping business is all about, and how to start one in Nigeria.
What Is A Dropshipping Business?
Dropshipping business is a business model where an entrepreneur does not keep his goods or products in store.
An entrepreneur doesn’t need to own a physical store where they keep their products before reselling them.
Such entrepreneurs rather act as middlemen between manufacturers or wholesalers and end-users.
In running a Dropshipping business, you only need to create an online store, (social media would help) where you can keep pictures of your products (remember you don’t need to keep the products with you) and customers can easily locate you and patronize.
Dropshipping business is a lucrative business and a profitable one to run in Nigeria; the good news is that, starting it requires very little or no capital.
Starting a dropshipping business will enable you:
- Sell products to your customers at will.
- Set prices for your product.
- Pursue both your entrepreneurial and life goals through the business and also
- Promote your own brand.
Dropshipping differs from retailing as you do not keep goods with you, neither do you need to pay to the supplier before it gets to your customer.
How To Start Dropshipping In Nigeria
Starting dropshipping in Nigeria is not difficult if you follow the steps outlined below carefully.
Step 1: Identify What Product To Sell
There is no business without goods or services. So starting a dropshipping business in Nigeria also requires the entrepreneur to have goods or products for sale.
Please note that dropshipping business allows you to sell more than a particular product, that is, you can combine as many products as possible, and identifying these products is the first step in starting your dropshipping business.
There are few things to consider or note when picking a product to sell to move faster ahead of competitors and to get established in the business.
1. Passion
One consideration is your passion. What are those things you love or use?
For example, a man who detests alcohol may not do well in starting a business involving alcohol.
Therefore, your interest can aid you in picking up a product for reselling.
2. Needs
If you are a student in the higher institution, for example, you would do well for yourself to study what your needs are as a student, and also the needs of your colleagues on campus?
Not being a student, you are also not left out as every man has one need or the other, and a particular group of people would have a common need than another group of people.
Example of students’ needs could be, writing materials, dresses, foodstuff, phone accessories, shoes and many more.
3. Access
You may want to consider if you have easy access to a particular company or firm over another to relate with them better and receive some tutelage on how to resell their products.
But if you already have a product in mind, good luck!!!
Let’s proceed to the next step.
Step 2: Find A Supplier
After you might have settled for a product of your choice either as a result of your passion or needs, the next step would be to find a supplier, a trustworthy one at that, as the success of your business may rest on them.
Your supplier owns the products you sell, and they have control over the delivery of products to your customers.
You cannot jumpstart this step of surveying and settling for a supplier you can trust.
In choosing your suppliers, you need to cross-examine for qualities you would want for your own business too.
Some qualities to look out for are:
1. Reliability and Trustworthiness
Are they reliable and can they be trusted?
You wouldn’t want your customers not to get their desired orders many times than often.So your suppliers must be such that they have goods ready and would fulfill their shipping responsibility.
2. Quality Product
Starting off with inferior products could only mean starting to close down soon. A customer that is left dissatisfied with their product may never come back and can even ruin the business by discouraging others.
But when you sell a quality product, your customers will surely come calling again and also recommend you to their friends and families.
3. Popularity
If a brand is popular, starting a dropshipping business with them will improve your business growth quickly.
And you will make more returns with minor efforts.
One way to find a reliable supplier on AliExpress is to check what their selling rate is. No one would want to partner with a seller with a very low sales rate.
AliExpress is an option anyone interested in dropshipping from Nigeria can settle for.
You can also have some reliable manufacturers or sellers in Nigeria work with you if you would walk up to speak with them. (NOTE that they must be reliable)
This can also be in two ways depending on their strength and your agreement. You may have to promote their products, send orders you receive to them while they handle logistics to Nigeria.
Or, you can do the promotion, pick up the orders and deliver them to your customers and pay the supplier.
Most suppliers of Nigerian dropshipping entrepreneurs are located overseas (mostly in China).
But in all, make sure you are careful, ask a lot of questions, and learn about the production capabilities of the supplier you’re considering.
In the event that your business grows exponentially, you want to be certain they have the capability to still supply your needs.
Step 3: Choose A Selling Platform
I mentioned creating an online store earlier. It is time to talk a little more about that.
Your platform is your online store. When starting a dropshipping business, you can either decide to set up your own e-commerce store or sell on existing e-commerce platforms like Jumia, Jiji or Konga.
Although not all these platforms allow other merchants to sell on their platform.
You may also start small with your social media handles ( WhatsApp, Instagram, Facebook). You will still make reasonable sales as you plan for your personal e-commerce websites.
You can also build your store by using WordPress. Let’s help you create an online store for free!
Step 4: Marketing
If you’re using an e-commerce website, then you would have to market your products to become visible to people.
No one would buy a product they don’t know exists.
One of the best marketing platforms is to make use of Facebook ads. You can create a Facebook page, too.
And you can also use other social media handles like Instagram ads.
If you are not using e-commerce platforms, then you’re already marketing via your social media platforms.
Step 5: Manage Your Finance
Financial management is very vital for the growth of every business, and improper management is one of the stumbling blocks to the growth of most entrepreneurs.
Daily record keeping and accounting should not be joked with. Whatever you start with will become part of you as the business grows.
Also, learn to keep your personal finance away from your business finance. Simply put, don’t spend your earnings!!!
Lastly, Keep Learning
Learning never stops! And Learning improves earning!
Therefore, give yourself to further learning as you move up the entrepreneurship radar.
Regards as you start counting your money!!!
That’s all on how to start a dropshipping business in Nigeria.
I hope this helps?