• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

InvestSmall

  • Personal Finance
  • Corporate Finance
  • Capital Market
  • Reviews
  • Find an Investment

How To Start Dropshipping In Nigeria

June 17, 2020 by Finance

Have you ever wondered what dropshipping is or why you should consider dropshipping in Nigeria? Well, to start with, dropshipping is a more cost-effective business venture than wholesale.

With dropshipping, you only need to place an order with your supplier when a customer has placed an order with you.

Starting a dropshipping business in Nigeria is very lucrative. It is a bold first step into entrepreneurship. You’ll be able to sell various items to customers, set your prices and market your brand. 

easy-loan

Table of contents

  • What is Dropshipping?
  • Dropshipping Vs Wholesale
  • Does Dropshipping Work In Nigeria?
  • Is Dropshipping Lucrative in Nigeria?
  • How do I start a dropshipping business in Nigeria
    • 1. Find an opportunity.
    • 2. Get a supplier.
    • 3. Choose your platform.
    • 4. Promote your business.
    • 5. Get your finances in order.
  • Benefits of Drop Shipping In Nigeria:
  • Conclusion
drop shipping in nigeria

What is Dropshipping?

Dropshipping in Nigeria is a retail channel where the seller doesn’t keep the products it sells in stock. Wholesale in Nigeria is expensive, and there is the risk of storing up bulk products. With dropshipping in Nigeria, it involves the seller purchasing the item from a third party and has it delivered directly to the customer.

It is a type of business model that allows a business to function without sustaining an inventory, stock products in bulk or even ships the products to customers.

Dropshipping Vs Wholesale

The significant difference between dropshipping and wholesale is that the seller doesn’t own or stock inventory. Instead, the merchant purchases stock as needed from a third party, usually another wholesaler or manufacturer to meet customer orders. Their customers could also be a consumer, retailer or wholesale merchants.

Read this -  Capital Investments - Meaning and everything you should know

Dropshipping does not require a considerable cash investment upfront to start the business. All you need is a minor investment together with the payment from your customers to make an order. You can check out this post to find the best investment in Nigeria.

Does Dropshipping Work In Nigeria?

Yes, dropshipping works very much in Nigeria. We do have a lot of merchants and entrepreneurs dropshipping in Nigeria. We also have some merchants dropshipping from Nigeria to other countries.

Is Dropshipping Lucrative in Nigeria?

Dropshipping in Nigeria is an enriching venture; the challenge most Nigerians have is the required knowledge of getting started.

The operation of wholesale as well as the conventional importation business is overly crowded, and operating in that space can be a little overwhelming. This makes dropshipping a worthy and more cost-effective alternative business venture in Nigeria.

Local Purchase order – meaning and what you should know.

How do I start a dropshipping business in Nigeria

1. Find an opportunity.

Picking a niche you fully conversant with will give you some added advantage over your competitors. Without prior knowledge to the industry of operation, you won’t notice anything suspicious about the quality of the products, pricing or anything related.

Your choice of business needs to be focused on something you are genuinely interested in. This is because a product range that isn’t focused will be difficult to market, and you might lose focus at some point. 

2. Get a supplier.

Using a wrong supplier can ruin your business, so it’s essential to carry out due diligence while finding a supplier. In Nigeria, most dropshipping suppliers for Nigerian businesses are mostly from China.

Read this -  Zero-based budgeting - What you should know

Alibaba and Amazon are one of the biggest online retailers with potential manufacturers and suppliers. Make enquiries about your suppliers to know what their production capabilities are if your business multiplies. You want to be sure they can handle such demands.

3. Choose your platform.

You need a platform to run your dropshipping business. This could require merging with popular e-commerce stores such as Jumia & Konga, which allows you to sell on their platform. It is easier to use platforms that will require a little resource to handle. You can make of social media to broadcast and market your products. Then, as your business scale, you can launch your website.  

4. Promote your business.

After you have chosen a platform for your dropshipping business, you need all the methods applicable for promotion. Having the products people desire without adequate promotion to get the product in their faces is terrible for business.

You can make use of the availability of social media marketing and promotional tools to promote your business. Facebook, Instagram, Twitter and other platforms have promotional tools that can put any business in the global space.

5. Get your finances in order.

As an entrepreneur, you must take financial management seriously at any stage your business is in. This helps you identify a nip in the bud the financial loopholes that may mar the business. Learn to keep personal finances and business finances separate as much as possible.

Benefits of Drop Shipping In Nigeria:

  • It requires little startup capital.
  • Drop shipping is very convenient to run
  • It is easier to make a profit.
  • Unlike other forms of mini-importation in Nigeria, you can run the business from the comfort of your home without a storage facility for goods or products.
Read this -  Family Needs - Family needs and how to save money
business-loan

Conclusion

Dropshipping is a lucrative venture for anyone who intends to make an investment in it. It is essential to tighten all loose ends on any transaction. Make sure you get enough information about your suppliers at regular intervals to stay updated about the trends in the market.

Dropshipping cannot be a successful business without logistics. We have written an article on top 10 logistics companies in Nigeria to help make your Dropshipping business seamless.

Find an Investment

Related Posts:

  • How to start Palm oil Business in Nigeria
  • 4 Insightful Ways To Attract Angel Investors As A Start-up…
  • Cheapest Business To Start In Nigeria
  • 10 Ways To Start Investing Small In Nigeria
  • How to start POS business successfully in Nigeria
  • 5 lucrative online businesses in Nigeria you can start now

Filed Under: Personal Finance

Primary Sidebar

Recent Posts

  • Top 5 Bitcoin Mining Investment sites
  • Nigeria Free Trade Zones – Everything you should know
  • Who is a stockbroker?
  • International Standard Organization – All you need to know
  • Where to invest your money as a student

Related Posts:

  • Fixed Deposit and Its Interest Rate in Nigeria
  • Investments opportunities you should consider in Nigeria
  • 4 Active Industries for Venture Capital in Nigeria
  • Why Saving is important |Five Reasons To Start Saving
  • Complete Guide on How to Start a Mini Importation Business…
  • What Business Can I Start With 50k

Footer

  • About Investsmall
  • Disclaimer
  • Terms Of Use
  • Contact us

Copyright © 2023 Invest Small. All Rights Reserved