In this article, i will show you how to start a dropshipping business in Nigeria 2020 and make a lot of money.
Hence, if you want to know everything about dropshipping from China to Nigeria and how you can put that knowledge into good use, then this article is for you.
Thinking about a high paying business that require a little amount of capital to start? Think no more as I have the perfect answer for you!
The desire of many Nigerians to venture into one form of business or the other has always been hampered by the unavailability of finance to fund such business ideas; leaving many with no choice than to jettison such brilliant ideas.
However, the upsurge in e-commerce here in Nigeria has given birth to many millionaires who started their business on a very small scale.
Are you surprised hearing about e-commerce on a small scale in Nigeria? Please don’t be! That’s what I will be revealing to you in this post- the secret goldmine called dropshipping.
Some of us must have heard or learnt about mini-importation in our post “Beginner’s guild to mini-importation in Nigeria in 2020”, However, the lack of capital has still prevented a lot of people from going into mini-importation or getting enough goods to meet their customers demand.
That’s why I will be explaining to you the money spinning side of e-commerce called dropshipping- where you don’t need much capital to start.
But for those that don’t have a penny to start dropshipping in Nigeria 2020, our article on how to make money online in Nigeria will be a quick start for you to raise the needed capital needed to venture into this very lucreative business called dropshipping business in Nigeria.
In this post, you’ll be learning the steps involved in becoming a major seller on e-commerce platforms like Jumia, Konga, Shopify etc. without spending a dime importing those items that you will be selling.
So let’s start with the basics; what is drop shipping really all about?
What Is Dropshipping Business?
Dropshipping is a business model where by the retailer does not stock up goods in his shop or supply goods to his customers directly.
A sell basically advertises a product online without actually owning the said product. When an interested person sees the product and pays for it upfront online, the seller forwards the actual price to the supplier of the said product. Now when this happens, the supplier sends the product directly to the buyer.
Now on this, the seller (which is you) will never come in contact physically with the buyer, you can only serve as a middle man to facilitate this transaction. This is basically how it works.
How Dropshipping Business Work In Nigeria
As a seller, you will create an online store on let’s say Jumia, Konga, shopify etc. or create your own e-commerce website and add pictures and descriptions of the products you are selling.
So whenever someone places an order and makes payment for the products, you will contact your supplier (Owner of the products you are selling) and send the clients address and make payment to your supplier out of the money that your customer has paid to you for the products.
The supplier will then ship the goods directly to your customer without you having to see the goods or physically meet your customer.
Your profit in dropshipping business in Nigeria is the difference in the price your customer paid you for the product and the amount you paid your supplier for the products.
If you can’t dropship from China to Nigeria, you may rather want to learn how to dropship on Jumia Nigeria, as thats what many Nigerians do these days.
Major Difference Between Dropshipping And Classical Business In Nigeria
There is a few difference between dropshipping business and the classical or traditional kind of business.
Below is the difference between dropshipping business and classical business
|The buyer pays in advance||The buyer pays after inspecting the product|
|The supplier is the one that ships the product to the buyer or customer||The buyer pays for the shipment of his product, unless otherwise stated|
|You pay the supplier only when you have received payment from buyer||The buyer takes care of everything on this regard.|
Basic Requirements To Start A Dropshipping Business In Nigeria
The requirements to start a dropshipping business in Nigeria are listed below:
- A smart phone and PC
- Access to the internet
- Information about the product you want to sell and where to get the suppliers for such product.
- Ecommerce platform like Jumia, amazon, Alibaba, etc.
- A bank account
- And the wiliness to make money
So having all these in mind, you’ll need to know the right steps to follow in order to get started with drop shipping business in Nigeria 2020.
Bucause of the nature of dropshipping business in Nigeria, in that you will be sending and receiving money from clients abroad, you may need to read our articles on how to open a Nigerian Business PayPal account that receives money abroad in Nigeria, or our article on how to open a payoneer account in Nigeria.
Quick Steps To Start A Successful Dropshipping Business In Nigeria 2020
Below are the steps to start a successful dropshipping business in Nigeria:
- Choose a niche and product
- Get a reliable supplier
- Choose an e-commerce platform
- Set up your e-commerce store
- Promote your store
Choose A Niche And Product
This is the first step you’ll need to take in order to start dropshipping business in Nigeria 2020. You should decide on the niche you want to focus on. I.e. which industry will you be specializing in?
Health, beauty and cosmetics, electronic gadgets, safety equipments, interior decoration items etc. pick a niche and build your store around it. Do not try to be a jack of all trades for you might end up being a master of none.
In deciding the niche and products you want to specialize on, ensure to carry out a market survey in order to find out the products that are in high demand.
Most new entrants into the dropshipping business in Nigeria do make the mistake of just picking any niche/products simply because they like it- please don’t make the same mistake!
Just like in any other business, you have to go for the products with huge turnover and profit margin. The products that people likes, not the ones that you like.
You can make use of keyword search and Google trends in order to find out the products that are in high demand here in Nigeria.
Get A Reliable Supplier
The backbone of dropshipping business in Nigeria 2020 is the efficiency of your suppliers. How reliable and efficient your suppliers are will determine how successful your drop shipping business will be.
This is primarily due to the fact that your suppliers own the goods you are selling since you are not stocking them in your shop.
They are equally the ones to deliver the goods directly to your customers- if they are efficient and able to satisfy your customers, the customers will be happy with you and reward you with more patronage and vice versa.
So the need for getting a reliable supplier can never be over emphasized.
When it comes to dropshipping business in Nigeria 2020, the best place to source for reliable suppliers is on www.aliexpress.com .
Though you can equally get suppliers on other platforms like www.dhgate.com, www.taobao.com etc but aliexpress.com remains the most reliable source for getting a supplier for your drop shipping business in Nigeria.
If you want to go into mini-importation with as low as N5,000, you can read our detailed article on how to import from www.aliexpress.com here.
When sourcing for suppliers, go for the ones with at least 70% ratings. Also endeavour to read the reviews about the supplier from other drop shippers.
You can easily get that on www.aliexpress.com in the ratings section of every supplier.
Different suppliers have different shipping methods and cost for delivering their products to customers in Nigeria.
So, ensure you go for the one with fastest but cost effective shipping method in order to guarantee that your customers get their products delivered on time and at the cheapest price possible.
list of other reliable suppliers for your dropshipping business in Nigeria are:
Choose An E-commerce Platform
This is the platform where you will set up your online store. There are two ways you can do this:
- Create your store from an existing platform like Jumia, Konga or shopify
- Set up your own ecommerce website
So let’s take a look on how to set up your drop shipping business using the two methods.
Creating Your Store On An Existing Platform
You can create a store and start selling on an existing platform like Jumia or Konga. This is a cost effective means especially for newbies because the platform you’ve created your store on will take care of a lot of things on your behalf.
To become a seller on Jumia, just visit the Jumia website and click on “Become a seller”
Creating Your Store Using Shopify
With Shopify, you can create your online store within an hour and start your dropshipping business in Nigeria 2020. It is easy to set up, operate and manage because, Shopify will help you to a large extent with the management of your online store.
Though shopify is easy to set up and operate, there is however a monthly fee attached to using it for your drop shipping business.
The good thing is that, you can use the free trial version for 14 days before opting in or out. So within that period, (all things being equal) you should have started making sales with your online store.
Set Up Your E-commerce Website
If you are financially buoyant enough, you can decide to set up your own ecommerce website that is completely independent.
With this, you will need to get a domain name and a web host. After building and hosting your site, you’ll need to install an ecommerce Plugin on your website called Woocommerce.
After installing and customizing your ecommerce website using Woocommerce, the next thing will be to get a drop shipping Plugin called Alidropship- this Plugin will help simplify the whole process of carrying out your drop shipping business successfully here in Nigeria.
If you are not tech-savvy, you can employ the services of a web designer to help you create and set up your ecommerce website.
Or better still, you can order for an already developed and customized drop shipping store from Alidropship.com- this will save you a lot of wahala.
While setting up your drop shipping store, choose a payment gateway that will be easy and convenient for your customers to make payments on your store.
Paystack is one of those payment gateways that is specifically for Nigerian customers. So using Paystack as the payment gateway on your ecommerce website won’t be a bad idea.
Promote Your Store
Once you have commenced your dropshipping business in Nigeria 2020, you will need to take a deliberate and strategic step to create awareness about your products and drive traffic to your online store.
Utilize the power of social media to market your products. You can create Facebook ads, Google ads, twitter promotions etc.
You can also create blog posts that are centered on your products and insert links to your store in the posts- this will drive traffic to your store and generate more sales for you.
Things To Note About Dropshipping Business In Nigeria
- Though some platforms require that you register your business before you will be allowed to get on their platform, you can still commence drop shipping business in Nigeria without registering your business.
- Your drop shipping business is exempted from taxation
- Your store is not limited to Nigerian customers alone; you can sell to customers in other countries also, provided you have a payment gateway on your online store that will enable them to make payments conveniently.
- All you have to do is to make payment to your supplier and the goods will be shipped to the customer.
- You won’t be required to pay for import duty when your package arrives in Nigeria
- If you get an AliDropship Plugin, it will turn your wordpress website into a fully functional ecommerce platform.
- One down side of suppliers on aliexpress is that they do take time before delivering to customers in Nigeria. At times 20-42 days.
Do not underestimate the importance of email marketing in promoting your products.
Dropshipping business in Nigeria is one of the most lucrative businesses out there right now. You can venture into it with minimal or no investment. Also, your present occupation can not hinder you from going into drop shipping.
Do not forget to drop your comment and or question below.