The Basics Of How To Start A Dropshipping Business In Nigeria

Dropshipping Business In Nigeria

It is no longer news that despite being portrayed as a poor country with a low standard of living, Nigeria’s huge population ranks it among one of the most promising marketplaces in Africa that people can easily sell to. Its population, coupled with having one of the highest mobile e-commerce markets in the continent, makes it an ideal place for a variety of marketplaces, one of which is dropshipping.

Dropshipping is a type of business that requires a seller to purchase a product from an individual/company (usually a third party) and deliver it directly to a customer.

The dropshipping business in Nigeria usually requires minimal inventory investment, which makes it less risky and favorable to individuals with little or no capital. The Nigerian marketplace also allows you to offer a wide range of products while working flexibly, i.e. from anywhere and at any time. All of these make dropshipping one of the most profitable business ventures in Nigeria.

So if you wish to start a dropshipping business in Nigeria, you are on the right track. In this article, we’ll be going into detail on what dropshipping is all about and some of the steps you can take to start a dropshipping business in Nigeria.

Does Dropshipping Work In Nigeria?

Just like in most other countries, the dropshipping business works pretty well in Nigeria. Since the COVID-19 pandemic in 2020, dropshipping has become a big deal, with people now preferring to make orders for products and have them delivered to their homes.

So if you are in doubt as to whether the dropshipping business works in Nigeria, you don’t have anything to worry about provided you’ve chosen a dropshipping niche you want to venture into, you’ve got companies that are willing to sell their products at an affordable price and an online store where you can post quality pictures of these products for your customers to see. You are good to go.

What Can I Dropship In Nigeria?

If you are looking to delve into the business of dropshipping in Nigeria, there are various opportunities available to you. Some of them include:

1. Hair extensions and wigs: Most girls want to look good and presentable when they step out in public, hence resulting to the high demand for products like wigs and hair extensions. As a dropshipper in Nigeria, you can take orders from these girls and forward them to companies selling these products.

2. Home interiors: People need their homes to look good when others visit. As such, most home interior products in Nigeria today are regarded as high-commodity products. Meaning almost everyone needs them.

However, some home interiors you can dropship in Nigeria include bedsheets, pillows, pillowcases, curtains, rugs, carpets, vases, cloth steamers, hangers, etc.

Other than products that are needed to decorate one’s home, there are other home improvement and tools products you can dropship. Some of them include smart plugs, extension cords, shoe racks, air purifiers, and doorbells, etc.

3. Office products: While most people tend to generalize dropshipping products to what people use at home, some organizations and companies need products that can be dropshipped too. Some of these products include dry-erase markers, mouse pads, bubble wraps, note pads, desk pads, file folders, ink cartridges, printer papers, gel pens, staplers, pencils, and packaging tapes.

While some people have shifted from working in physical offices to working remotely, it still doesn’t mean that some of these products mentioned above, as well as other office products, are not in high demand and cannot be dropshipped.

4. Car and phone accessories: There are Nigerians who are into the business of buying car or phone accessories wholesale and selling in retail or directly to customers. Rather than allowing them to buy directly from companies that sell these accessories, as a dropshipper, you can take orders from them at a price higher than the normal price and forward them to the companies at the normal price for accessories to be delivered to them.

Meanwhile, some car and phone accessories you can dropship in Nigeria include phone chargers, wiper blades, power banks, windshield, sun shades, steering wheel covers, bluetooth speakers, headphones, earphones, window shades, phone pouches, floor mats, etc.

Is Dropshipping Profitable In Nigeria?

Dropshipping business is a type of business that involves buying a product or item from a third-party individual or company and selling it to a customer directly.

Let’s take for example, if a customer needs a brand new Tecno phone, he or she has to place an order with the dropshipper and pay for it. You’ll then have to forward the order to Tecno company, pay for it (at usually a lower price than what the customer paid for), and keep the change as your profit. The Tecno company will then have to process the order and ship the phone to the customer.

While this process of dropshipping looks easy, you might want to ask, “Is the Dropshipping Business Profitable in Nigeria?” The answer is yes. Dropshipping business is so profitable in Nigeria and other parts of the world that one does not even stand a chance of suffering a loss or suffering from risk.

Unlike most other businesses in Nigeria that require you to start with capital and make gains that are more than your capital before you can make a profit, the dropshipping business is different.

Dropshipping business in Nigeria is very profitable because you need little or no capital to start it and you stand little or no chance of suffering from risk or running at a loss.

All you have to do is take an order from a customer at a price higher than the usual price of a product and forward the order to the company which in turn processes the order and ships the product to the customer.

Why Start A Dropshipping Business In Nigeria?

If you intend to start a business in Nigeria, there are many reasons why you might want to choose dropshipping as an option. One of the major reasons why people start dropshipping business is because it is profitable. But other than being profitable, here are some other reasons why you should start a dropshipping business:

1. No risks: One of the reasons why many are scared of starting a business is the fear of taking risks. As a dropshipper in Nigeria, you require little or no capital or even investment to start this business. This is because you are not manufacturing products for sale but rather reselling products that have been manufactured by other companies.

Also, as a dropshipper, you don’t have to rent a warehouse, a store, or a shop where you can store and sell products. You only have to purchase a product after receiving an order from a customer. You don’t have to store the product before selling either as the manufacturer of the product will be the one to ship it directly to the customer.

2. Flexibility: You don’t have to do dropshipping business full-time in Nigeria. It is so flexible that it offers you an opportunity to do other businesses. This is a result of the fact that there are a lot of automated solutions that can help you perform various tasks automatically and save time that would have required your attention. You only have to pay attention to areas like management issues and customer service that require human factors.

3. Useful skills: Aside from the fact that you get to make money from dropshipping in Nigeria, you can also learn one or two skills while making money. Skills like website performance analytics, customer relations management, digital marketing, and social networks management, among others, are what dropshipping can teach you as a person.

How Much Is Needed To Start A Dropshipping Business In Nigeria?

Many might dread starting a dropshipping business in Nigeria as a result of the cost they think it requires, the truth is that a dropshipping business requires little or no cost to start it.

Here’s why. Unlike other forms of businesses centered on buying and selling which requires you to buy products and store them in a safe place or shop before selling, dropshipping business is a different ball game entirely.

When running a dropshipping business, you don’t need to buy and store products before selling. You can simply receive orders from customers and forward them to companies. These companies in turn receive the money for these products and deliver them to respective customers.

In this case, as a dropshipper, you don’t have to spend your own money to purchase products before selling to customers or spend your money renting a place to store your products before selling them. This is why it is said that the cost of starting a dropshipping business is low as most times it requires little or no capital.

What Are The Things To Know/Do Before Starting A Dropshipping Business In Nigeria?

Here are some things you need to know or do before you start your dropshipping business in Nigeria.

1. Pick a niche: Dropshipping is a very complex business industry, as such, one of the easiest ways to make the best out of it is by picking a niche. This makes you stand out among others and gives you a strong grip over what you are doing. For instance, you might decide to choose phone accessories as a niche. This way, when people need phone accessories, they know you are their go-to person since it is your area of specialization.

2. Get a good supplier: To succeed as a dropshipper you need to have a good reputation and be known for delivering quality products. One of the ways you can easily achieve this is by getting or working with a supplier that is trustworthy and reliable.

3. Create an online store: You need to create a website that bears your brand name and showcases the different available products and the various payment methods customers can use to purchase them.

Mind you, you are not selling directly to customers here. Your website only serves as an online store where they can see what’s available and pay for it.

How Do I Start A Dropshipping Business In Nigeria?

Here is the step-by-step guide you should take if you intend to start a dropshipping business in Nigeria:

  1.  Decide your business structure
  2. Pick a niche
  3.  Check out your competitors and analyze their performance
  4.  Choose a supplier
  5.  Create your online or e-commerce store
  6. Market your dropshipping business to start getting customers

1. Decide your business structure: There are different types of business structures. From sole proprietorship to Limited Liability Company (LLC) and Corporation. In fact, there are different options for you to choose from. While these business structures have their advantages and disadvantages, having an idea and deciding on what you want yours to look like should be the first step to starting your dropshipping business.

2. Pick a niche: One of the major mistakes most dropshippers make is dropshipping every category of product or item they can think of. By doing this, they end up losing the attention of customers and competing with bigger and more established dropshipping brands.
Nevertheless, you need to simply pick a particular dropshipping niche and focus on it.

For example, rather than dropshipping everything that has to do with electronic gadgets, you can decide to niche down to dropshipping just phones or even niche further down to just Android phones. That way, you can carve out a name for yourself in that niche.

3. Check out your competitors and analyze their performance: After you have chosen a niche of your choice, the next thing you have to do is to check out what other dropshippers in that niche are doing and emulate them. This is one secret of dropshipping that most people don’t know. Provided you and your competitors are in the same niche, what works for them will work for you.

Check out what they are doing and analyze their performance. This would put you in the right direction. Some tools can help you achieve this. Google Trends for instance can help you determine if the products of your competitors are trending upward or downward. Another tool like “Keywords Everywhere” can help you see the search volume of products your competitors are dropshipping.

4. Choose a supplier: Your supplier is the person or company you forward your customer’s orders to for direct delivery. Starting a dropshipping business without a supplier is useless. Hence, while making preparations for other things for your business, make provision for a supplier too.

Also, ensure your supplier is trustworthy and reliable. This would allow for transparency between the both of you and also uphold a good image of you in the eyes of your customers.

5. Create your online or e-commerce store: This would serve as a store where you display the products or items you dropship, their different prices, and the different methods for which your customers can pay for them.

6. Market your dropshipping business to start getting customers: As a newbie in the dropshipping business, you would probably have a very few number of people as customers. This is normal for a start.

However, you can’t rely on those few customers to succeed as a dropshipper. This is why you have to look for ways to market your business. You can decide to run ads on Google, Facebook, Instagram, and other social media platforms.

You can also use word of mouth by telling your family and friends to tell their friends about your dropshipping business. This is likely to help you get customers and increase patronage.

Ambassador Victor Chidera
Ambassador Victor ChideraAmbassador Victor Chidera is a business consultant, writer and a blogger. He provides lots of professional and expert advice to small businesses, entrepreneurs and organizations. He has many years of experience in business, teaching field, and research work. And his aim is to provide business articles that matters to you both nationally and internationally.
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