Have you ever been curious about dropshipping, how to start a dropshipping business with no capital in Nigeria or the benefits of doing so? To begin with, dropshipping is a more economical form of business than wholesale.
Only when a consumer has ordered from you through dropshipping, that you need to place an order with your supplier.
It’s incredibly profitable to launch a dropshipping business in Nigeria. The initial step into entrepreneurship is a daring one. Customers can purchase a variety of goods from you, and you can set your own rates and promote your brand.
What is Dropshipping?
Dropshipping is a retail strategy used in Nigeria where the vendor doesn’t hold inventory of the goods it sells. It is expensive to buy in bulk, and doing so carries some risk.
When dropshipping in Nigeria, the vendor buys the product from a third party and arranges for direct delivery to the buyer.
It is a form of business strategy that enables a company to run without maintaining an inventory, keep goods in large quantities, or even transport goods to customers.
How can I launch a Dropshipping Business with No Capital in Nigeria?
How to start a dropshipping business with no capital in Nigeria is by following the steps below:
- Pick a niche
- Find a Vendor
- Decide on a Platform
- Market your company
- Organize your finance
1. Pick a niche
Selecting a niche that you are well-versed in will offer you an advantage over your rivals. You won’t detect anything suspicious about the product quality, pricing, or anything else connected if you don’t know the business’s sector of operation beforehand.
Your chosen business should be centred on a subject that actually interests you. This is due to the fact that a wide-ranging product line will be challenging to market, and you risk losing focus at some point.
2. Find a vendor
Finding a vendor is one of the ways on how to start a dropshipping business with no capital in Nigeria. Due care must be used when choosing a supplier because choosing the wrong one can destroy your business. China is the primary source of dropshipping suppliers for Nigerian companies.
One of the largest online merchants with possible suppliers and manufacturers is Alibaba.
Ask your suppliers about their production capacities if you anticipate growing your firm. You need to make certain that they can meet these standards.
3. Decide on a platform
To operate a dropshipping business, you need a platform. This would necessitate a merger with well-known e-commerce sites like Jumia and Konga, whose platforms you can sell on. Platforms that just need a small amount of resources to operate are simpler to utilise.
You can advertise and market your products through social media, like WhatsApp or you can make use of Facebook marketplace. Then you can launch your website as your company grows.
4. Market your company
After selecting a platform for your dropshipping business, you will need to use every promotion strategy available. It is bad for business to have the things that consumers want without doing enough marketing to get the product in front of them.
You can use the social media marketing and promotion tools that are readily available to advertise your business.
Every firm can enter the worldwide market thanks to the promotional tools available on Facebook, Instagram, Twitter, and other platforms.
5. Organize your finances
Organizing your finances is one of the ways on how to start a dropshipping business with no capital in Nigeria. No matter what stage your firm is at, you as an entrepreneur must treat financial management carefully.
This enables you to spot any financial problems and close them as soon as possible. Learn to keep your personal and professional funds as distinct as you can.
Top 10 Dropshipping Websites
The top 10 dropshipping websites available in Nigeria are:
- Ali Express
- Worldwide brands
- Inventory source
- Wholesale Central
1. Ali Express
Alibaba owns the Chinese online marketplace AliExpress. AliExpress, which contains millions of products, is used by many drop shippers.
You may order single pieces on AliExpress, unlike many wholesale suppliers on Alibaba. Direct client shipment is made possible and the requirement for off-site inventories is decreased. You may search through millions of products by signing up for free.
Additionally, AliExpress monitors and updates shipments. Various e-commerce platforms can automate order fulfilment as well. Chinese suppliers dominate AliExpress, which results in reduced rates and frequently available international shipping options.
One of the biggest global buyer and supplier directories is called SaleHoo, and it is situated in New Zealand. You may locate dropshipping and conventional wholesale suppliers from all over the world using the big supplier database.
They offer a very affordable $67 yearly subscription. Keep in mind that, unlike AliExpress, SaleHoo does not accept retail orders. It takes a more formal approach and necessitates a direct supplier connection.
Consequently, you will need to interact and network with other companies. For drop shippers seeking to specialise in a single niche, this alternative can be better.
An excellent Shopify plugin is offered by Oberlo. You can find everything you need in the Oberlo product directory. Additionally, the dashboard shows the number of page views, sales, and star ratings for each product and seller.
The Starter plan for Oberlo is always free. For $30 per month, the Basic plan offers monitoring for order fulfilment and freight tracking. Your 500 sales cap will replace the current 50 sales cap.
Once you achieve 500 users, you may add a lot of members on the Pro tier for $80 per month.
4. Worldwide Brands
A directory of reputable drop shippers, distributors, and importers is kept up to date by Worldwide Brands.
The Florida-based business has been verifying vendors for more than 20 years. It is simpler to locate certified vendors thanks to Worldwide Brands.
Additionally, it provides instruction on finding suppliers and starting online businesses. You must develop your own business relationships and fee schedules with service providers as a directory.
Additionally, a one-time $ 299-lifetime subscription fee is charged. Although the cost may be exorbitant, you only need to pay once and can continue to dropship using the platform indefinitely.
5. Inventory Source
Order management software and a dropshipping platform Inventory Source link retailers and drop shippers so that products and inventory are automatically synced.
The platform also enables companies to offer goods at reduced prices and develop more intimate relationships with their suppliers.
Although custom integrations do cost money, this is the only option on this list of the best dropshipping websites in Nigeria that allows you to add your own drop shippers.
Consumer electronics are the major focus of Megagoods. The California-based company, unlike other platforms, owns and stores its products, enabling quick shipping.
Dropshippers selling electronics to customers will love Megagoods. However, Megagoods’ product selection is fairly constrained when compared to the big wholesale directories and marketplaces.
You will need to develop your own fulfilment process because Megagoods isn’t currently integrated with any ecommerce platforms. In other words, you’ll need to individually source delivery and shipping.
Doba makes it easy to find suppliers, buy things, track them, and manage inventory. Every order and the dropshipping process is expertly managed by Doba.
They also make it simple to sell goods because they integrate nicely with marketplaces and ecommerce platforms. This platform’s key advantage is that novice and experienced drop shippers can both use it.
It’s not always simple to get in touch with suppliers directly, though. If you have particular supplier requirements, this could be problematic. Service tiers range in price from $29 to $249 per month, which is also rather pricey.
8. Wholesale Central
A user-friendly platform and international vendors are offered by Wholesale Central. They have more than 25 years of experience bringing together worldwide buyers and providers.
Dropshippers can utilise Wholesale Central for free, and suppliers can list their products there. All interactions and transactions with suppliers are required because Wholesale Central is an online directory.
Additionally, locating a dropshipping partner could take some time because the majority of their suppliers sell in bulk at wholesale prices.
Among the high-end brands that are offered on Modalysts are Dolce & Gabbana, DSquare, Calvin Klein, and many others. Selling goods from trusted brands to your clientele might assist establish the reputation of your own company.
For retailers looking to reduce their carbon footprint, Modalyst even curates collections of eco-friendly goods made from sustainable materials. You may brand your products using Modalyst Private Label Dropshipping, too.
There is no issue if you are dropshipping to Nigerian customers. More than 80 countries are served by Modalyst’s wholesale suppliers.
Using Wholesale2B to start dropshipping items from vendors throughout the world is an easy, automated option. Dropshipping automation with a little supplier or logistical communication is the platform’s main goal.
It has several integrations with e-commerce platforms and online marketplaces and is free to use. Although it’s free to browse Wholesale2B, you have to pay separately for any service you decide to buy.
For instance, you have to pay for each platform separately if you want to drop ship on several ones. Additionally, only little customer care is provided during business hours.
Requirements for Dropshipping Business in Nigeria
One of the requirements of Dropshipping is Selecting a platform on:
- Shopify and
How to build a Dropshipping Business in Nigeria with Shopify
To build a platform with Shopify, follow the procedure below:
- Make up a name
- Opening an account on Shopify
- Optimization of account settings on Shopify
- Opening a Shopify dropshipping store
- Design your Shopify dropshipping store
1. Make up a name
You must first create a name for your store before you can build a platform in Shopify. A name should be short, inventive, and distinctive.
Oberlo has taken its assistance in assisting you in coming up with a name for your Shopify dropshipping store further. It’s important to know that Oberlo and Shopify are combining.
Therefore, you can enter a keyword term that you want to include in your business name into the Oberlo online business name generator.
Using the keyword of your choice, several names will be generated. After that, you can browse through them and pick the one you like most.
2. Opening an account on Shopify
How to begin is by:
- You must first go to Shopify’s homepage.
- Your email address must be entered in the blank space at the top of the screen when it has loaded.
- You will then be prompted to choose a password for your account and a name for your potential Shopify dropshipping store.
- After being directed to respond to a few questions, you can submit.
- Your account will be instantly created after submission.
3. Optimisation of account settings on Shopify
You will now fine-tune your freshly formed account’s settings.
The setup consists of:
- Options for payment: How do you want your clients to pay you?
- Store regulations: It also entails creating your store’s terms and conditions. Including your refunding and privacy policies
- Delivery costs: In this section, you establish precise and transparent shipping costs for your products. Free delivery should always be provided from the beginning.
4. Opening a Shopify Dropshipping store
You must launch the account after customising your account settings.
How to begin:
To add an online store, simply access the Sales Channels section and choose “add-in.”
After completing those steps, your account will be ready to use.
5. Design your Shopify dropshipping store
Your Shopify dropshipping store’s design communicates the values of your company and your brand.
The two key design elements you should pay close attention to are:
- selecting a theme
- designing a logo
Imagine launching an internet store with a motif that is outdated and repulsive.
How many of you are even going to look into what they have to offer?
The theme conveys how serious you are about selling.
There are a few pre-built themes available on Shopify. If none of these suit your needs, you can make one for yourself.
To also ensure that your logo accurately represents your brand and what you do, use a distinctive logo.
How to build a Dropshipping platform with Jumia:
The creation of a platform on Jumia is the first step in launching a dropshipping business, but there are several prerequisites you must meet. You must be at least eighteen (18) years old and a Tax Identification Number is required (TIN). Others are as follows:
- Sign up
- Training section
- Content creation and product listing
1. Signing up
You must sign up as a vendor on Jumia before you can create a dropshipping account.
All you have to do is visit the Jumia website and go to the bottom of the page.
- Click “sell on Jumia” in the bottom left corner of the button.
- You will land on a different page.
- Simply select “start selling now.”
- You will be taken to a page where you must fill out a registration form with some of your personal data.
- After agreeing to the terms and conditions of Jumia, click submit.
2. Training session
- You will receive an email with a link to the “Vendor Hub” website after completing the registration procedure.
- You will receive instructions there on how to sell successfully on the site.
- Both online and offline training is finished.
3. Content creation and product listing
Product listing on this page is for the seller. Whether or not your chosen niche products are already available on Jumia affects how this procedure works.
You are ready to go after completing this step.
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Does Dropshipping Work In Nigeria?
Dropshipping is very effective in Nigeria. In the country, there are a lot of retailers and business owners who dropship.
Additionally, there are several retailers who dropship from Nigeria to other nations.
How Does Dropshipping work?
The drop shipment cycle is straightforward. It works by:
- Customer places an order on your online store as the first step.
- Your shop instantly notifies your dropshipping supplier of the order.
- Your clients’ orders are prepared by the dropshipping supplier.
- Your customer receives the order from the dropshipping source.
9 Advantages of Dropshipping in Nigeria
- Little starting money is needed.
- Running a drop shipping business is very convenient.
- It’s simpler to turn a profit.
- You can operate the business from the comfort of your house without a storage facility for goods or products, unlike other types of mini-importation in Nigeria.
- It is not necessary to have a physical inventory of goods before you can sell something to a buyer
- The vendor is in charge of the goods in his own stores and will handle shipping or providing the clients in your name
- Customers need not be aware that you are a middleman.
- It is an excellent chance to generate passive income
- Scaling up is simple as your consumer base grows.
3 Disadvantages of Dropshipping Business
- Low margins are the primary drawback of doing business in a highly competitive dropshipping market. Because it’s so simple to launch a business with no overhead expenses, many entrepreneurs will open their shop with absurdly low prices in an effort to boost sales right away.
- Shipping and returns: If you use multiple suppliers, as many drop shippers do, your shipping costs may become more complicated because they may differ between suppliers. You also lose control over the calibre and pace of the shipping.
- Lack of visibility: You outsource some of your customer satisfaction when you work with suppliers. A significant portion of the whole consumer experience is being built and delivered by someone else. The customer will place blame on you if something goes wrong with the supplier’s shipment.
Is Dropshipping Profitable in Nigeria?
Dropshipping is a lucrative business in Nigeria, but most Nigerians struggle with the necessary skills to get started.
It can be a little overwhelming to operate in that overcrowded environment, which includes the wholesale as well as traditional importing businesses.
Dropshipping becomes a viable and more affordable alternative business venture in Nigeria as a result.
9 Niche Ideas for Dropshipping
Here are a few of the businesses that are currently trending online:
- Men’s Clothing and accessories
- Women’s Accessories & Clothing
- Wellness & Health Dropshipping
- Kids & Babies Niche Dropshipping Home & Kitchen
- Phone Accessories
- home and pet
- Autos and motorcycles
- Extensions and wigs for hair
Wholesale Vs. Dropshipping
The fact that the vendor doesn’t own or keep inventory on hand distinguishes dropshipping from wholesale.
Instead, to fulfil client requests, the retailer buys stock as needed from a third party, typically another wholesaler or manufacturer. Additionally, their clients might be wholesalers, retailers, or consumers.
Dropshipping does not require a big initial financial outlay to get started. Making an order just requires a small outlay of money in addition to payment from your clients.
Anyone looking to invest in dropshipping will find it to be a successful business. Any deal must have all loose ends secured.
To keep up with market trends, make sure you regularly receive enough information on your suppliers.
Frequently Asked Questions on Dropshipping Business in Nigeria
Let me briefly address a few of the frequently asked questions about drop shipping in Nigeria before we get started.
When using AliExpress to dropship in Nigeria, is there tax to be paid?
No, that’s the answer. Tax payment is only available to US citizens.
Will you pay import taxes for goods going to Nigeria?
Still NO! Any price you must pay for a product will be made explicit on your supplier’s website. The tax duty is covered by the shipping costs.
Do you have to register your business as an online retailer?
NO, and YES are the answers! You don’t have to register right away merely to avoid paying the fee. However, you should think about registering your firm as it starts to take off and gain speed.