Business & Investment

Dropshipping in Nigeria; meaning, how to start, tips to succeed

In this post, I will show you how to start Dropshipping in Nigeria. Dropshipping, in the simplest of terms, is selling products, majorly online, from a third party (usually Amazon, eBay, or AliExpress), without exactly having them in stock.

As a dropshipping outlet, you do not have inventory, or a warehouse, of goods you sell. In dropshipping, a merchant creates an online store where he puts up pictures and descriptions of products from a third party online store, and when customers request to purchase these products, the dropshipper then goes ahead to supply the third party outlet with the address of the customer and the required payment for the product, and the third party outlet delivers the product to the customer.

However, if the third party outlet is AliExpress, you can go ahead and purchase the goods for the customer and make the delivery yourself.

You do not have to have the goods in stock before you put them on your online outlet. This is how dropshipping differs from the traditional retail model.

Also, in the dropshipping model, there’s additional cash added to the price of the product. This is the dropshippers profit.

Dropshipping can be quite profitable, especially with the recent growth of online retailing. Here in this post, we’re going to give you a breakdown of the steps to start dropshipping in Nigeria. Before we do that, however, let’s look at the pros and cons of starting a dropshipping outlet in Nigeria.

Advantages of starting a dropshipping business in Nigeria

Easy to start – Because you aren’t dealing with warehousing and stocking up inventory, dropshipping is relatively easy to start. All you need is an online outlet, a supplier, and a product niche and you’re good to go.

Low capital investment – Dropshipping doesn’t require much monetary investment to startup. Funds that would usually be used to set up warehouses and purchase goods do not come into play when establishing a dropshipping outlet.

Low maintenance cost – without inventory, equipment, and a warehouse, there is little need for maintenance. You could run your dropshipping outlet on your laptop from the comfort of your home. Also, additional expenditures like rent and wages are avoided.

Disadvantages of starting a dropshipping business outlet In Nigeria

Low profit margin – initially, when you start a dropshipping outlet, profit margins might be quite low. This is because you do not want to charge too much for the products you dropship, as this could turn off your customers.

Shipping costs – As a dropshipper, you handle the shipping and delivery costs of the products you market. And, although you can add this cost to the original price of the products, it could still affect your profit return.

How to start a dropshipping business in Nigeria

We mentioned earlier that dropshipping is relatively easy to start. We are going to show you how easy it is to start up a dropshipping outlet by giving you a quick breakdown of the required steps.

1. Choose a product niche

The first step in starting a dropshipping outlet is making a decision on the particular product(s) you want to deal in. In a marketing business like dropshipping, you do not just start out as a jack-of-all trades.

You start out, first, by doing extensive research on marketable products, as well as favourable strategies needed to market these products.

On choosing your product niche, you should pick a product you’re familiar with, or interested in, a product you know would pull the market, a product that is profitable and with very little competition in the dropshipping industry.

Google trend can help you with detailed information on trending products. You do not jump into a business. The planning before the start-up is as important, if not more important, than the start-up itself.

2. Find a supplier 

There can be no Dropshipping without a supplier. You do not have the goods in stock. You get them from the supplier and make your delivery.

So, having a supplier is a must when establishing a dropshipping outlet. And, you do not just choose any supplier.

A trusted outlet in the online retailing industry should be your first choice when picking suppliers. One of the most trusted names in dropshipping is AliExpress.

They’re the pick of over 80% dropshippers in Nigeria. They have a large stock of goods and their products are relatively cheap compared to other online outlets. Also, on AliExpress, you should choose suppliers with, at least, a 90% score.

3. Create your online selling platform

The most important steps in starting up a dropshipping business in Nigeria is creating your online selling platform. This is where your customers will come to find products they want.

That is why your website must look attractive and easy to use. Packaging is everything! No customer will make use of your dropshipping services if your website is looking amateur-ish.

Your website must give the feel of a professional. There are some platforms that will enable you create a website with a classy professional look. One of these platforms is WordPress. On WordPress, you’ll need your domain name  – or website name – and a web hosting account. Your web host helps you save your web data online, sort of like a warehouse for your website, while your domain name is like a address to that warehouse.

Next, what you’ll need is an e-commerce software (Woocommerce Plugin) on your website. After installing this software, you can then start tweaking your website to your taste. No coding is involved.

After setting up your website, what you’ll need next is a dropshipping plugin. Without this plugin, you cannot run your dropshipping outlet. One recommended plugin is the AliDropship Plugin.

What AliDropship plugin does is it helps you import product descriptions and pictures into your dropshipping store.

It also sends your customer’s information to your supplier. Just in case you cannot create your dropshipping website by yourself, you can order a ready-made dropshipping store customized with products ready for marketing from AliDropship. Shopify is another alternative.

It is recommended  for those who do not have any experience with WordPress, as it is relatively easy to use, although more expensive.

Shopify is a self-hosted platform/website builder that allows you to build a website quite easily under, at least, 30 minutes. They even offer you a 14-day free trial after helping you build your website. So, you can create your website and start marketing immediately. After the free trial, you are to pay a subscription before using the website again.

4. Start marketing your business

You must market your products to gather patronage. Customers won’t know about you if you don’t market your business. Social media, like Facebook, and Google merchant, can help you market your product(s).

You can create a Facebook business page and run Facebook ads based on your product niche. Instagram ads and instagram influencer can also help.

Start making money – Once all these logistics are in place, customers can start making purchases from your website and you van start earning.

Conclusion.

Dropshipping is one of the most lucrative ways to make money online. And, what makes it even better is that it is easy to startup. With the steps outlined here, you too can start making money through dropshipping.

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Ifiokobong Ibanga

Ifiokobong Ibanga is the founder of InfoGuideNIgeria.com. InfoGuide Nigeria is a team of Resource Persons and Consultants led by Ifiokobong Ibanga. Page maintained by Ifiokobong Ibanga. If you need a personal assistance on this topic, kindly contact us.

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