How to start Dropshipping business in Nigeria
Many times, you might heard of the word dropshipping and of course wondered what it meant and how it works.The whole concept revolves around owning an E-commerce website of your own but in this case you don’t need to have the products in stock. Yes you heard me right, the product is actually owned by a third party who is actually referred to in this case as your supplier, and whenever a customer pays for an item on your site, you then proceed to pay the supplier who will also handle the shipping of the item to your customer. Now that is sounding more interesting to you, but there’s more things to take note of, and that is what this post is going to address. Whenever one is about to start any business of any kind, you must first consider the environment which in this case is assumed to be Nigeria, hence the reason the post was titled “How to start a Dropshipping business in Nigeria”. Starting a drop shipping business in Nigeria entails that you must think of the payment gateway for your business. Also, it is also important that you know how to handle issues relating to third party suppliers in other to have your products shipped faster.
Of course I know you are curious as to what kind of products to dropship? And if you’re thinking of dropshipping internationally, then you should be aware whether or not you have to pay tax or register your company.
Also bear in mind that, you need to understand if are you going to pay a customs tax on all the products you’re dropshipping in Nigeria especially if you’ll need to import them.
So you probably need relax and carefully read through. If you are yet to subscribe to this blog, i recommend you do, to get more insight tips and ideas that could help to grow your brand, do feel free to join our new community on Facebook.
Straight ahead, what is dropshipping all about and how does it work in Nigeria? In the simplest form dropshipping is selling products without needing to have in .
This is how it works; First you must create an online store and that starts with you building a website with domain name and hosting. After you’ve created an online store and added your products to it. When I say products i’m referring to pictures of items you intend to sell with it’s descriptions.
This is majorly because like we mentioned earlier you don’t need to have product stock in physical. And after this, as soon as you receive an order (paid order) from a customer, all you have to do is contact your third-party supplier (owner of the product) by sending your customer address and paying the supplier from the initial money paid to you by your customer.
The supplier on confirming your payment which is almost instant in most ideal situations will in turn, make the shipment to your customer. Leaving everyone happy with the transactions that took place.
Secondly, if you will be using AliExpress to source for products like many people do, It will not be necessary to contact the seller. All you simply need to do is go ahead and pay for the products and fill your customers’ details on AliExpress as the buyer.
Without wasting time the Supplier on AliExpress will then proceed to package the product and immediately shipped to your customer without them knowing it was actually from AliExpress.
These are 5 simple steps on how to start Dropshipping in Nigeria,
Before we start let me quickly answer some of the frequent questions commonly asked about drop shipping in Nigeria.
Do you need to pay tax dropshipping with AliExpress in Nigeria? The answer is NO! Paying of Tax are for residents in the US.
Will you pay tax duty on products shipped to Nigeria? Still NO! Whatever amount you are to pay on a product will be clearly written on your supplier website. The shipping cost covers the tax duty.
Do you need to register your company as an e-commerce business? The answer is NO and YES! When starting, you don’t necessarily need to register just to save the cost. But when your business starts booming and growing momentum then you should consider registering your business.
In addition to this, some payment gateway might require you to have your business registered before you can start making use of their services. A good example is Paystack.
That’s that about that. So let’s look at the steps on how to start a successful dropshipping business in Nigeria.
Research and choose products to Sell
Find trusted Suppliers
Choose a good Selling platform.
Promote your business.
Enjoy making money.
Step 1: Research and choose products to Sell
The step is very crucial as failure to do right thing can actually ruin your chances of getting any thing tangible from the business. First and foremost is key that you research the products you intend to sell to know if it is actually in demand. You need to also ensure that it is profitable to market such an item.
Another thing you must have in mind while choosing your products is that it is not wise to start by selling just any product you see. Try as much as possible to check the demand over-time for such products through the use of Google Trend.
It has to be on the market trend. That is, demand for it must be relatively high or at least very stable and the competition for it should be minimal.
I must also add that you don’t necessarily need to have so many items on display to profit from this business model, just ensure that you are targeting products that are in demand and you are good to go.
Having a niche store is also a welcome idea.(a store that focuses on a particular type of products e.g Toy store or ladies wears store). This will allow you to easily Up-sell and Cross-sell customers with similar products.
Step 2: Find trusted Suppliers
One of the most important factors that will determine if you will succeed of fail in dropshipping is the quality of suppliers you’re working with. Remember that they are the real owners of the product and it is also their duty to ship the product which has been paid for as quickly as possible to your customer, using the customer address you must have provided.
One of the smart ways to spot a good supplier on AliExpress is by always ensuring that you check their seller rate. And it is not advisable that you settle for a seller whose score is below 90% score.
So as you can see, AliExpress is this the best option for anyone interested in dropshipping from Nigeria. Except you have access to a reliable manufacturer or whole-seller in Nigeria that’s willing to work with you.
In this case, all you’ll have to do is promote their products send orders to them, and they will be the one to handle the logistic within Nigeria. Other than that, AliExpress is usually the more realistic option.
Another advantage of using sellers on AliExpress is that most of the merchants there are factory owners or major wholesellers in china, which means that items are reasonably cheap thus giving you room to add your profit margin and make your. The good thing is over 80% of dropshippers use AliExpress so this might be your best choice in Nigeria.
Please also note that, using AliExpress also comes with its own set of challenges! Which of course is the issue of AliExpress long shipping time.
Remember that you can also target international markets or delve in Mini importation business too.
Step 3: Choose a selling platform
This part is very important, because this is what determines how your website is going to appear and feel to your customers. And you know the saying “professionalism breeds reputation”. For this I’m going to list two platforms for building your store. They include:
WordPress – for this, you will need to get a domain name first. That is, the name of your website, and get a web hosting plan to host your web store.
Your web host determines how your web data is saved online. This is practically like a house for your website while the domain name is like an address to that house.
After your domain name and your hosting account are ready, you can then install e-commerce software (WooCommece plugin) on your website after you’ve must have installed WordPress from your Cpanel.
This can be done through one-click installation. And after that, you can start tweaking the website to your taste even though it sounds easy it is recommended that you get a professional to help set-up your web-store.
Here’s the most important part, after everything is set up, you then need to get the Dropshipping Plugin (AliDropship). Without the plugin, you can’t run your dropshipping business effectively.
Shopify – Shopify is a self-hosted platform and a website builder that allows you create website in not so much time.
This is one of the best platforms for dropshipping if you are a newbie or even a professional. It allows you to focus on your business by branding and marketing your products while they manage your store for you.
Another good thing is that it often comes a 14days trial. You can set-up your store in a few days and start marketing immediately for the first week.
With this, it’s possible to make profits within the 14days and pay your subscription even before the trial expires.
But then, It is always wiser to get a professional to help you with this part as there are a few technicalities involved in this aspect that can’t be listed here as they are ever changing and would require a web developer to help you design
So you can allow us at NEW CONNECT to help you setup everything From the Design to the Integration of all the necessary features needed,in other to get you started in no time while you focus on making your money, We have done things for a number of happy clients who are doing quite well today.(Call or Whatsapp +234 808 970 0958)
Step 4: Market your business
Without being told, every business man knows that without effecient marketing of his/her business, no one woul know it exist and as a result of that no one will buy.
You have to take it to them. This entails that you deploy a wholistic marketing approach that will be result oriented, deploying every possible strategy.
You will need a very sound knowledge of Digital Marketing or get an experienced Digital Marketing Expert to handle this aspect for you.
Step 5: Start making money
Finally just like i mentioned earlier, to make the work easier, there is a dropshipping plugin called “The AliDropship plugin”. This plugin is specifically designed for dropshipping.
What it does is that it helps you to import product descriptions, photos, etc from your supplier website to your store.
This can be done with just a click and when a product is sold on your store, it automatically sends the customer details to your supplier. The only thing left for you to do is to pay the supplier.
After that, the supplier then ships the product to your customer address without questions asked and your customer won’t know the product is from a third party.
Drop shipping has proven to be a good residual stream of income when done the right way and following the proper channel.
The Issue of Payment Gateway
The payment gateway is still the greatest hindrance to several online businesses in Nigeria. However, in the case of dropshipping there are few ways around that. They include:
PayPal – this platform is the most widely accepted payment gateways but unfortunately it’s not visible in Nigeria. However, there has been a way around that. Which I’m sure few people are currently aware of.
If you’re not, I have a PayPal report on how to set up your PayPal account that receives payment in Nigeria. Although it’s going to cost you a fee, a tiny fee in that matter… You can check the price here!
Alternatively, you can use…
Paystack – this platform accepts payment by default only in Nigeria. But if you want to receive payment internationally, you need to create an account with them and have your business registered with CAC and also have a corporate bank account in your business name.
After this, you can then send them a request for receiving international payment. If everything goes well, you can start receiving payments within 24 hours.
Finally we at NEW CONNECT believe that It will be a great pleasure to work with you on your next Research and Business Development, Branding and Web Design/Development Projects.
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