Advancements in technology and the internet generally have led to the massive adoption of online shopping today. With this latest development, comes business opportunities you can take advantage of, the top of which is dropshipping in Nigeria. Basically, drop shipping has become a very common business, as it requires little or no capital at all, and saves you the stress of having to set up business structures.
Despite its relatively low bar of entry, most people are still confused about dropshipping in Nigeria and how to start a successful dropshipping business in Nigeria. Certainly, knowing a business is one thing, and knowing how to run it successfully is another. This article helps you tick both boxes, explaining what drop shipping in Nigeria is and how to successfully start up a dropshipping business in Nigeria with little or no capital.
What is Dropshipping?
Dropshipping is a retail business method where the retailer does not have the item in stock, but purchases them from a third-party supplier and has it delivered to the customer directly. The third-party supplier is usually a wholesaler, another retailer or the manufacturers themselves. Dropshipping is one of the investments with monthly returns in Nigeria.
What are the advantages of the dropshipping business model?
Some of the advantages of the dropshipping business model include:
- Dropshipping is easy and quick to start
- It requires little or no capital
- You do not have to stock up physically before you can make sales to customers
- Customers are satisfied without having to know you’re the middleman
- You can start from the comfort of your home
- Dropshipping is easy to scale up as your customer base increases
- The supplier takes responsibility for the safe storage of products and will ship directly to the customer in your own name
What are the disadvantages of dropshipping business model?
The disadvantages of the dropshipping model include
- Low-profit margin due to low overhead costs
- Logistic problems arising from lack of control over goods shipment and returns
- Lack of control over customer satisfaction since the goods from manufacturing to delivery are handled by the supplier. A mistake from their end will see you take the blame.
What is the minimum amount to start dropshipping in Nigeria?
You can start dropshipping in Nigeria with as little as N10,000 and maybe even less. In some situations where you are able to find a supplier that trusts you, you do not need any capital order than your mobile phone and an internet connection.
Can I start dropshipping in Nigeria with no money?
Yes, you can start dropshipping with no money. This is because there are no upfront fees for setting up a shop, inventory or warehouse where you keep your goods. Additionally, products are supplied to the customer directly by the supplier, therefore, you do not have to cover shipping and packaging costs.
What do you need to start a dropshipping business?
There are four major components you need to start a dropshipping business in Nigeria:
1. A solid business idea:
A solid business idea is important in starting a successful business. You need to ask yourself important questions about what you can sell best, how it meets needs and the type of people you can sell to.
2. A reliable supplier
The supplier is a key component in every dropshipping business. Therefore, they have to be reliable and have goods available at fair prices so you can make a profit.
3. An online advert medium or store
One of the easiest and most cost-effective ways to get customers is through online channels. You can open free online stores or social media pages to market your goods directly.
4. A business account
Beyond a doubt, every business needs a business account, and you should have one too. For accountability, you can place transactional restrictions on the account for proper financial management and accountability.
How to start a successful dropshipping business in Nigeria
Here’s how to go about establishing a successful dropshipping business in Nigeria:
1. Identify an opportunity
Just like every other business, the existing opportunity largely plays a role in how successful a business will be. Identify a problem in a niche that needs to be solved and an equivalent solution. This is the best way to carve out a name for yourself and your business.
2. Enters the Supplier
The next step is to find a trusted supplier that is willing to explore a dropshipping partnership. This means that such suppliers must be willing to sell at a lesser price to you, package and also ship down the product to the customer. Sometimes, suppliers may not be willing to handle logistics themselves, and you may have to partner with a logistics company.
3. Select your platform
Depending on your capital, you can choose to simply open social media pages and advertise organically, open a free store with platforms like Shopify, or build your own website. Essentially, of the three options, building your website is the most expensive. For cost-effectiveness, you can start small through social media pages or opening a free store, then proceed to build a website over time.
4. Strategic Marketing
There’s no point in opening a business if you don’t have a way to reach potential customers, is there? Marketing solves this problem and can be done completely online. Digital marketing is an essential part of any successful business, and it starts with building an online presence across relevant social media platforms. Additionally, you can proceed to run ads to promote your products on Facebook, Twitter, LinkedIn, etc or opt for affiliate partnerships with eCommerce platforms like Konga and Jumia.
Read more on How to Make Money on Facebook
5. Tidy your finances
Regardless of how successful a business is, financial mismanagement can ruin it completely. Entrepreneurs starting out often make the mistake of not taking finances seriously, therefore, running into loopholes that ruin them in the long run.
From taxes to, payroll management and other small business accounting, there are routine financial activities that you should not take for granted. Additionally, learn to keep your business finances separate from your personal ones.
How to make payments for dropshipping via crypto
Dropshipping requires making payments and payments too from all parties. As a seller, you need to collect payment from the customer ahead of time and remit to the supplier once the goods have been delivered.
Because most dropshipping business owners turn to foreign suppliers to get the best prices, making payments are usually very difficult as they only accept dollars and not Naira. At the time of this writing, there is a $20 monthly limit on bank debit cards, thereby frustrating the effort of dropshipping business owners looking to buy products in large quantities.
Fortunately, cryptocurrency is saving the day as supplies now accept crypto payments and other digital assets like USDT and USDC. The Bitmama Virtual Crypto card is an easy way to create your virtual dollar card or virtual crypto card, allowing order goods with no limits.
Here’s how to make payments for dropshipping via crypto:
- Download the Bitmama app on Android or iOS
- Create an account on the app and log in
- Navigate to “Banks and Cards” in the options menu
- Select cards and then request a virtual card
- Lastly, fund your virtual card via your crypto (stable coins) wallet and you are good to go
Wrapping Up
Dropshipping is a very popular business model today, especially since it requires little or no capital. This makes dropshipping very easy to set up and following our guide above, you should have little or no problems. However, like every other business, you need to work smart and stay consistent with product innovations, and fair market prices and prioritise customer satisfaction to stay afloat.
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