In Nigeria, one of the lucrative and profitable business to start in 2021 is dropshipping. But some people are scared of starting an online business because of the startup capital and the hassles of running a small business in a country like Nigeria. But starting a dropshipping business is a great first step into entrepreneurship in Nigeria because you’ll be able to sell products to customers, set your own product prices and market your very own brand without even paying for inventory until it’s sold to an actual customer. In this article, we’re going to teach you how to be a successful dropshipper in Nigeria (2021), what a dropshipping business is all about, the difference between a dropshipping business model and retail classic model and also a step by step guide on how to get started.
What is Dropshipping Business?
Dropshipping business is a retail business where a seller doesn’t keep the products it sells in stock rather, when a sellers gets an order, it purchases the item from the producer or shipper and ship directly to the customer.
In Dropshipping, you can operate without maintaining inventory, warehouse to store your products or even having to ship their products to their customers themselves.
What is the difference between Dropshipping Vs Classic Retail Model
One of the difference between dropshipping and the classic retail model is that the dropshipper doesn’t stock or own inventory but purchases inventory as needed from a third party usually the manufacturer.
Also, dropshipping, you can start with a smaller cash. While the classic retail model need to invest more cash up front, however, it comes with higher profit margins.
How To Be A Successful Dropshipper in Nigeria
1. Find a selling niche
2. Find a trusted supplier
3. Choose a good platform
4. Promote your brand
5. Get your finances ready
Find a niche
Going for a niche you understand will give you some additional advantages over your competitors. The niche you choose must be one that you are interested in. A product with a low range will be difficult to market.
Find a supplier
Having the wrong supplier can ruin your business, so I recommend that you don’t rush this step. Many dropshipping suppliers that are good for Nigerians businesses are located overseas, mostly China. Make sure to study them well before using them.
Alibaba is one of the largest online platform to identify and communicate with potential manufacturers and suppliers. But make sure you ask a lot of questions and learn what their production capabilities are in case your business grows later.
Choose a good platform
Your platform is your online store. You can either decide to set up your own e-commerce store or sell on popular e-commerce platforms in Nigeria like Jumia & Konga.
I recommended that you start with the seconds alternative given above because they take care of so many problems that you may not have the resources to handle.
Promote your business
You should be familiar with this popular quote in business that says “Nothing happens until someone sells something”. Your major purpose of venturing into a dropshipping business is to sell something and you can only achieve this by constantly looking for innovative and less cost-effective ways to promote your business.
Get your finances ready
One of the common mistake entrepreneurs make when starting a business is not taking financial management seriously. Every entrepreneur needs to always look out for financial loopholes that can ruin the business and avoid such.
Also, learn to keep your business finances seperate from your personal finances.
Dropshipping is a popular business model for new entrepreneurs in Nigeria. You don’t need to stock or handle the products you are selling.
This guide will help you to know the necessary steps you need to know on how to start a successful online dropshipping business in Nigeria from scratch.