This is a detailed guide on how to start mini importation business in Nigeria.
Mini importation business is one of the best and proven ways to make money online.
Check out other ways to make money online here.
Mini importation business involves bringing in goods and services from another country into a particular country for the purpose of selling or consumption but in this case, on a smaller scale.
Regardless of the size or scale of the mini importation business, the profit made is still encouraging given the fact that a lot of Nigerians value foreign-made goods over homemade goods.
Hence, when these goods are imported and sold to Nigerians, they are willing to pay well for it, the reason being that it is believed to be quality.
Do you wish to learn how to start a mini importation business in Nigeria, but don’t know-how, this guide will help.
In this guide, I will show you on how to start a mini importation business in Nigeria, the right way.
How to Make Money From Mini Importation Business in Nigeria
Just like regular buying and selling, money is also made from mini importation business.
Below is how you make money from mini importation business in Nigeria.
1. The kind of goods you decide to import and their prices would determine how much profit you would make from such goods.
2. Just like a regular business, you would buy the goods at a lower price than the price you intend to sell it back home after importation.
3. Build a customer base or community to ensure the purchase of your goods when they arrive to prevent running into loss.
4. Buying goods in large quantities to make more profit and also cope with the MINIMUM ORDER QUANTITY.
The minimum order quantity explains the minimum amount of products a manufacturer would supply to you to ensure he/she makes the right amount of profit.
It gets difficult most times to benefit from low wholesale prices that are supposed to earn you more profit because the amount of money you put in as capital is not as much as that of importers operating on a larger scale.
As such, you only have the option of buying from these big importers who buy directly from the manufacturers and thereby sell to you in whatever price range they choose, making your profit margin low and in most cases force you to sell back at outrageous prices in order to make a meaningful profit.
The advancement of technology has made a great impact in business today such that buyers can now communicate and create business relationships with sellers or manufacturers in a different country.
Also, the means of transporting thee goods from these countries down to Nigeria is much better and comfortable when compared to so many years ago.
These improvements have now made it possible for most mini importation business owners to deal directly with manufacturers and thereby enjoy the same level of profit that the big importation businessmen enjoy.
How to Start a Mini Importation Business In Nigeria
Starting a mini importation business in Nigeria is very easy when you have the right guide.
Here is how to start mini importation business in Nigeria.
1. Choose Your Product
When starting a mini importation business in Nigeria, it is important to first do research and decide on the type of products you want to deal with.
Knowing the best type of products to sell would guide you on where to get them and how to get them.
Not every product is favorable to every country or time period. Therefore it is important to put that into consideration when choosing the product you want to deal on.
It is also important while deciding on the product to import, the best places to get them at a cheaper rate so you can sell them at a higher price and make a meaningful profit.
Buying goods at a very high cost and not making a profit defeats the purpose of starting up any business.
Also See: How To Start An Online Clothing Business In Nigeria
For example, a lot of imported products in Nigeria especially gadgets are China made.
This means that Nigerian Importers get these goods at cheaper or affordable rates from Chinese manufacturers and then make a meaningful profit when they sell it back home.
If you are considering buying such products, there are a few websites that can help make that happen.
They include www.alibaba.com, www.aliexpress.com, etc.
Visit any of these websites and create an account with them. Thereafter, go through the website and see products you may be interested in buying to sell back home.
2. Get a Reliable Supplier
Getting your goods from a very reliable supplier is very important in any business.
The mini importation business is no different, in fact it is what guarantees the success of your business.
When you get a reliable supplier for your products, quality goods would always be available for your customers.
Consumers tend to be loyal to suppliers or sellers who get them what they want and at the right time they need them.
So basically, for an importation business to succeed, the channel between the supplier to the importer and down to the customers should be smooth.
This means that the goods should be available, delivered when needed, and on time.
Also, you can check feedbacks on that particular supplier or his product. Read reviews and check ratings underneath the products to ensure the products supplied by that particular supplier is authentic.
This would also guide you against buying fake or inferior goods which would either tarnish your reputation or make you run into a loss.
3. Making Payments For Products
The issue of paying for goods have been a problem years ago.
The importers go through a long a rigorous process to make payments for their goods and this has made a lot of people not go into the importation business.
This problem has been taken care of with the presence of the internet and various transaction options.
There are a lot of payment gateways available to the importer that has made such transactions easier and possible.
These payment platforms include:
- Debit Card
- Skrill
- Payoneer
- Paypal
- 2checkout
- Vogue pay
- Direct bank wire
- Western Union money transfer
- Interswitch
Debit Cards
This is the most used and widely accepted means of payment in every country.
When paying for your goods, especially if you are buying from a foreign site, the first payment option you always have is paying with your debit card.
However, not every debit card can be used to make foreign payments online, only Master and Visa Cards are accepted for international online payment.
Hence, if you are requesting for a debit card from your bank for international online payment, ensure you tell them you need a Visa or Master Card.
Skrill
This payment platform is quite cheap and easy to use for importation businesses. All it requires is just the email address of the supplier.
Also, accessing your money on Skrill is quite simple.
- Set up a skrill account
- Get issued a Mastercard
Payoneer
This payment platform is one of the best payment platforms for importation businesses.
They operate an efficient flow of transactions and make accessing payments quite easier.
All that’s required is to create a Payoneer account and get issued a Mastercard.
Paypal
This payment platform is one of the best payment gateways in the world and currently has a very large network of subscribers all over the world. Although, it has not yet gained solid grounds in the country.
2checkout
This payment platform is also good for mini importation businesses.
It accepts PayPal transactions and credit cards. They operate a smooth process that guarantees efficient integration for cash transactions from anywhere in the world.
Vogue pay
Vogue pay is another option for mini importation business owners in Nigeria.
They permit the use of debit cards for payments and also operate a smooth integration process that makes transactions easier.
Direct bank wire
Direct bank wire is a platform that is both efficient and encourages the transfer of large amounts of money.
Although it attracts certain levels of extra charges during the conversion of currencies but it’s still a great option.
Western Union Money transfer
This platform is also a great option for mini importation businessmen in that it creates an opportunity for transferring large sums of money and can be used for making payments and receiving payments.
This platform is one of the oldest means of making cash transfers known to a lot of Nigerians and they have built a reputation for reliability and consistency over the years.
For mini importation businessmen, they can send payments for their goods via this platform easily and at the right time.
Interswitch
Interswitch has been evaluated and approved for reliability and efficiency when it comes to making and receiving payments online.
It creates room for the use of both credit cards and debit cards for making payments.
They have a smooth integration process that makes transactions comfortable and efficient for the mini importer in Nigeria.
You might also want to check out the top 13 best online payment gateway in Nigeria,
Customer Protection
In as much as there are genuine websites for making importation of goods convenient, there are also a lot of fraudulent websites set up by individuals to defraud victims.
This is why most genuine websites that handle such transactions employ measures to protect customers known as BUYERS PROTECTION.
The buyers’ protection is an innovation implemented by these websites to secure the interests of both the buyer and the seller by acting as a middle man that holds the cash payment for goods and would only be released to the seller once the buyer has confirmed the goods.
In situations where the goods are not what the buyer ordered, a measure is implemented known as the DISPUTE FORM.
This form is filled correctly by the buyer and his/ her payments refunded back.
4. Shipping And Delivery Of Goods
Getting your goods delivered to you is the endpoint of importation whether on a small scale or on a large scale.
Placing an order for certain goods to be delivered to you can be made in two forms:
- The paid shipping
- The free shipping
1. Paid Shipping
This form of shipping is faster and lets you track the goods. It takes a lesser number of days to get your goods delivered to you when compared to the free shipping method.
The paid delivery method is quite expensive but the speed and efficiency of this method measure up to the cost.
A way to reduce cost or size of your order is by eliminating irrelevant items that could spike up the cost or size of your order.
Also Read: Shipping Cost From China To Nigeria.
2. Free Shipping
The free shipping method saves cost thereby giving room for meaningful profit but it might take a longer time.
This method is convenient for mini importers who are not in a hurry to get their goods delivered to them.
Maybe they aren’t buying it to sell urgently but rather to stock up for later sale at a fixed time.
Due to the delay in goods arrival, it is important to include your contact details to enable them to contact you on arrival.
One downside to this method of shipping besides the delay in delivery is the fact that you may not be able to track your goods. So it is basically done on trust or benefit of the doubt.
One last point to have in mind about free shipping is that not every supplier offers free shipping.
Hence, if you consider using the free shipping, then be sure to confirm from the supplier before making purchases.
How To Minimize Cost On Shipping
Reducing cost on shipping means more profit and this is the aim of importing goods.
This can be done by taking out unnecessary items from your list of ordered goods would help eliminate certain costs that are not important and also reduce the size of the package to a more preferable state.
Advertising and Marketing
Making your imported goods known to the public is the only way customers can indicate interest in your goods.
In fact, this is a key factor that ensures success in business.
When these goods are imported and properly communicated to the public, awareness is been created about your goods and this makes customers approach you for purchase.
Platforms To Market and Sell Your Imported Products
Below are some of the platforms where you can sell your goods.
1. Online Store
One of the best ways to sell your mini importation product is by creating you own online store.
Creating an online store allows you to control your products, and update them as you will.
If you wish to learn more about an online store, including how to create one in Nigeria, here is our detailed guide on how to start an online store in Nigeria.
2. Mass Media
There are a very good number of media platforms that can handle adverts for your goods.
Making articles or publications on newspapers or magazines can help a great deal in passing your message across to the public.
Despite the massive influence of technological advancement on present-day mass media, a lot of people still buy newspapers and magazines.
You can also include radio stations or television stations to help cover a larger percentage of the country’s population.
The huge impact of the mass media on the public and on business at large can not be overemphasized.
Although the cost of using the mass media platforms might be on the expensive side but the wide reach of this method is larger compared to the many forms of marketing.
2. Referral
Getting information of your goods spread fast can be done via referrals. This is a network that involves bringing customers to you and getting the people who get the customers for you compensated.
It is a great form of creating a customer base which would spread to lengths you never imagined.
There are a lot of businesses today that engage in the use of referrals online and this has to a great extent made their businesses known, thereby increasing the level of profit for these businesses.
3. Social Media
Marketing your imported goods on social media can be done by setting up a page for your business on any of the social media platforms like Facebook, Twitter, Instagram, Whatsapp and so on.
It has been made easier and convenient to market goods on these social media platforms due to the various features included on these social media platforms to aid businesses.
Promotions and Adverts slots are made available to businesses for engaging with their customers online.
Getting your page active includes displaying your products on it for customers to see and indicate interest. Also, frequently updating your business page would keep your customers glued to it.
4. Handbills And Flyers
Designing handbills and flyers in an attractive way would get the attention of customers.
The handbills and flyers should contain explicit details of your business, the goods, and the location of your business including contact details of the business.
These handbills and flyers can be distributed in various locations or face to face with customers thereby informing them of your business.
You can also employ the help of individuals to help in the distribution of these flyers and handbills to cover a larger percentage of distribution.
The downside or limitation to this method is the fact that uneducated people may not be able to comprehend the contents.
It is therefore important that the contents of the handbills and fliers should be quite comprehensible to even the uneducated and this is why pictures or good graphic designs are included to make it more attractive and comprehensible.
5. Verbal
This is a method that dates back to centuries ago. It still hasn’t lost its effect in today’s business world.
Approaching people and talking to them about your business would give them first-hand knowledge of your goods and also create in them a certain level of confidence in your products.
This can be done in gatherings such as church, events, offices and so on. In the long run, this builds a direct communication bridge between you and your potential customers.
It takes a good level of interpersonal skills to achieve this and that’s why businesses employ customer care representatives who possess great interpersonal skills to enable them to communicate better with customers.
That’s all on how to start a mini importation business in Nigeria.
I hope this guide on how to start a mini importation business in Nigeria helps?