Are you thinking of a business you can start in Nigeria with low capital and from the comfort of your home?
Dropshipping is one of the untapped businesses in Nigeria, with mouth-watering profit margins.
With dropshipping, you can set up an online store to sell products to customers, set your prices, build and market your brand.
Dropshipping allows you to sell to customers without paying for or holding any inventory or products.
This article will give you all the information you need to begin a dropshipping business, with tips and tricks for success in dropshipping.
How Dropshipping Works in Nigeria
Dropshipping is a business model where a store sells products without keeping products in stock.
The dropshipping business works in the following way: customers order products from your online store, you buy the products from a third-party supplier, and then the supplier ships the products directly to the customers.
Hence, with the dropshipping business, you have zero worries about shipping costs, storage location, and physical inventory costs.
What Can You Dropship?
Before you start dropshipping, it is very important to have researched lucrative items to sell to Nigerians. However, let me give you a list of some of the hot-selling products in Nigeria.
- Hair Extension Products: such as wigs, hair treatments, shampoo, and more
- Phones and Phone Products: phones such as Redmi, Tecno, iPhones and more. Phone products you can sell include phone casings, screen protectors, earphones, and so on.
- Fashion Products and Accessories: such as male and female clothes, shoes, bags, and more
- Baby Products: such as baby wears, diapers, baby beds, and more
- Computer Products and Accessories: this includes laptops, mouse, keyboards, desktops, laptop chargers, and more.
- Home and Kitchen Products: products such as electric cookers, refrigerators, pots, spoons, and more.
- Food Products: Foodstuffs such as garri, rice, beans, yam powder (elubo), and more are very profitable.
You can read our full review of the hot-selling products in Nigeria.
Steps to Start Dropshipping in Nigeria
Step 1: Conduct Market Research
The first step to starting a dropshipping business is to conduct market research. When conducting market research, check for the fast-selling products in your vicinity, what your competitors are selling, and prices.
You can use online tools to aid in extensive market research, including:
By doing so, you will be able to make the right decision on the niche of products to dropship.
Step 2: Identify a Profitable Niche
If you have done good market research, you will already know what product niche you will base your business on according to the needs around you.
I have given you a list of hot selling products above. But you can also check out our list of the most profitable items to sell in Nigeria.
You can identify one of the product niches and start from there.
Furthermore, I will advise you to start with a product niche you are familiar with; otherwise, you can take some time to research the niche you want to go into.
Step 3: Find Reliable Suppliers
You must research suppliers for your dropshipping business because you can begin to fail from there. Finding reliable suppliers for your business can be done through the following;
- Use directories like Oberlo and AliExpress to search for a vast number of suppliers offering a wide range of products.
- Check supplier reviews, ratings, and shipping options on your niche of products
- Contact manufacturers directly if you can to give you an added advantage
- Request for samples of products from suppliers to check the validity
- Source for local suppliers in Nigeria like Jumia and Konga for products to reduce uncertainty and costs
Step 4: Set up an E-commerce Store
After conducting market research, identifying your niche, and finding reliable suppliers, it is time to set up your e-commerce store.
You can choose to set up a store on already existing e-commerce platforms such as Shopify and WooCommerce or sell on social media platforms.
However, in setting up an e-commerce store, here are the things you must do;
- Pick a domain name: a domain name that is easy to remember and speaks to what you are selling.
- Choose a theme: the theme you choose should be visually appealing, easy to navigate, and user-friendly. You can find themes on Themeforest.
- Add products to your store: start adding products to your online store by importing them from your supplier’s website or manually. Ensure the images are of high quality, and add detailed descriptions of products and prices.
You can also use platforms like Flutterwave and Selar to set up a free store. The good part is that they’ll manage payments for you, too. So, zero stress.
Step 5: Optimize Product Listings
To enhance your store’s visibility on search engines such as Google, you must add engaging product descriptions to your online store with relevant keywords.
So, when anyone searches for a particular product using the keyword, your online store pops out. This is called Search Engine Optimization (SEO).
Moreover, endeavor to add multiple high-quality images and ratings of products on your online store to ensure seamless customer experience.
Therefore, using relevant keywords in your product listings drives traffic to your store and puts your store on good ranking in search results.
Step 6: Establish Payment and Shipping Methods
As part of setting up your online store, establish payment methods for seamless transactions and to gain trust from customers. You can choose any payment method that suits your kind of dropshipping.
I recommend Paystack and Flutterwave payment pathways for dropshipping in Nigeria, or you can use your local account.
Also, let your shipping times be clearly stated if you are dealing with international suppliers so that your customers know what to expect.
Shipping options for dropshipping in Nigeria are provided by DSers AliExpress.
Step 7: Create a Marketing Strategy
Now that your e-commerce store is running, you need to create a marketing strategy to attract traffic to your store to sell your products.
These are marketing strategies you can use to attract potential customers to your store;
- Social Media Marketing: Promote your products on Facebook, Instagram, WhatsApp Status, and Twitter. Make sure to use high-quality images and interesting content when promoting your products on social media. You can also run ads if you want.
- Influencer Marketing: You can partner with influencers in your product niche or high-profile people with many followers to promote your products on social media.
- Content Marketing: Create engaging and informative content and videos about your business and products for blog posts, WhatsApp Status, Facebook, and Instagram.
Step 8: Handle Customer Service
As you start scaling your business, you need to handle customer service effectively. Ensure to add valid customer support lines to your online store.
You can get a team to handle customer queries and complaints.
Furthermore, include the time and days customers can call in, such as Mondays to Fridays between 7 am and 5 pm.
Step 9: Analyze and Improve
As your dropshipping business grows, it is essential to analyze and improve your business metrics, such as,
- conversion rates,
- customer experience,
- order fulfillment, and
- customer acquisition costs
Improve your business by diversifying into other niches, increasing order fulfillment, allowing customer feedback, and improving customer support.
Benefits of Dropshipping in Nigeria
The dropshipping business in Nigeria has several benefits, some of which are:
- Low Risks: Dropshipping comes with very low risks because you don’t buy or keep inventory, unlike traditional retail.
- Numerous Range of Products: The dropshipping business allows you to sell a wide range of products from multiple suppliers.
- Minimal Costs of Operation: You can start dropshipping with little or no costs. This is because you don’t stock products, and products are shipped to customers directly from suppliers.
- Flexible Working Hours: Dropshipping allows you to work flexibly from your home or anywhere in Nigeria. You decide the number of hours you want to work.
Cost of Starting Dropshipping in Nigeria
Having seen the benefits of dropshipping in Nigeria, you still need to have a budget before you start your dropshipping business. Your budget is mainly for;
- Hosting and setting up an online store
- Product validation (optional).
Hosting and Setting up an Online Store
The most common e-commerce platform for dropshipping is Shopify. Shopify gives you access to diverse dropshipping and marketing tools. Shopify has a free trial, after which you will pay a monthly subscription of $39 (about ₦45,000).
If you are serious about dropshipping, then you need a domain. You can buy a domain through Shopify or create one on WordPress and will be required to pay an annual fee of $14 (about ₦16,100).
Also, you will need a dropshipping tool. The common one is DSers, which is the best AliExpress dropshipping tool.
DSers also offers a free basic plan, but you won’t be able to do much with it; hence, you will upgrade to the advanced plan for $19.90 ( about ₦23,000).
There is no clear-cut amount for marketing. Most of your customers for dropshipping business are on social media platforms, such as Facebook, Instagram, and even WhatsApp, so you can grow your followers organically. However, you can decide to run ads on Facebook and Instagram.
Hence, you can add another ₦50,000 to your budget for marketing.
Product Validation Cost
Product validation is ordering products for yourself from potential suppliers to check the authenticity and quality of the products you want to sell. This is optional if you trust the suppliers. You can also budget for that if you want.
How Much Money Do I Need to Start Dropshipping?
To start your dropshipping business, your budget should be around;
₦45,000 + ₦16,100 + ₦23,000 + ₦50,000 = ₦134,000. Consequently, with ₦100,000, you can start dropshipping in Nigeria.
Pros & Cons of Dropshipping Business
Here are the pros and cons of starting a dropshipping business in Nigeria.
Starting dropshipping business in Nigeria is a lucrative business model for young entrepreneurs looking to start a business with low capital.
This article has given you all the tips and tricks for success in dropshipping business in Nigeria and how to maximize profits.
How to Start Dropshipping in Nigeria – FAQ
Can a Nigerian Do Dropshipping?
Yes, a Nigerian can do dropshipping. Dropshipping has nothing to do with your nationality. As a Nigerian, you can sell products to customers in other countries because you don’t store inventory.
How Can a Beginner Start Dropshipping?
As a beginner, you can start dropshipping by following these simple steps;
- Do a market research
- Choose your product niche
- Find reliable suppliers
- Set up an online store
- Optimize your product listings
- Establish payment methods
- Promote your products.
How Do I Find a Supplier for Dropshipping in Nigeria?
You can find suppliers for dropshipping in Nigeria by searching on bestsellers such as AliExpress, Alibaba, SaleHoo, Doba, and others.
Is Dropshipping Allowed on Jumia?
Yes, dropshipping is allowed on Jumia if your business allows Pay Before Delivery. You can also dropship on Konga.
Is Dropshipping Really Profitable?
Yes, dropshipping is really profitable because you get paid simply by being an intermediary between customers and suppliers.