Just like starting any new business, there are some pros and cons of dropshipping business in Nigeria.
Pros of Dropshipping Business in Nigeria
1. Low investment
2. Easy to start
3. Low overhead
4. Location flexibility
5. Easy to scale
One of the biggest advantages of dropshipping in Nigeria is that you can start your own online store without having hundreds or thousands of dollars to invest into inventory.
Easy to start
Apart from finding a good supplier and setting up your online store, running an dropshipping business is easier to start and run because you aren’t dealing with physical inventory.
You don’t have to deal with purchasing goods and managing a storage facility, so your expenses nice and low.
You don’t have to pay for expensive rents, because all you need is a connection to the internet and your dropshipping business can be run from just about anywhere.
Easy to scale
By using dropshipping suppliers, most of the work will be on your suppliers, thereby allowing you the opportunity to expand and scale with less work.
Cons of dropshipping business in Nigeria
1. Low margins
2. Shipping and Returns of products
3. Lack of visibility
This is one of the disadvantage of operating in a highly competitive dropshipping market because since it’s so easy to start with low costs, many entrepreneurs will start their store with very low prices in a bid to quickly grow their business returns.
Shipping and returns
If you’re using more than one supplier, it can complicate your shipping costs as they can vary from supplier to supplier. You also lose control over shipping quality and speed of ordered products
Lack of visibility
Since you work with suppliers, you need to also outsource some of your customer’s satisfaction. Someone else is building and sending out a product which is a huge part of the overall customer experience and if anything goes wrong on the supplier’ end, the customer will blame you.
Dropshipping is a popular business model for new entrepreneurs in Nigeria. And it’s best because you don’t have to stock or handle the items you are selling.
The above listed pros and cons of dropshipping business in Nigeria will help you to know the necessary steps you need in launching your own dropshipping business from scratch.