How to Start a Dropshipping Business in Nigeria

Ngozi Enelamah


Dropshipping has come a long way in the African market, and that’s because it is a business model that allows entrepreneurs to sell products without holding inventory. The way it works is, whenever a customer orders a product, as the business owner, you’ll buy that item from a third-party supplier, who will ship the product directly to the customer. 

This business model has become increasingly popular because it eliminates the need for upfront inventory costs, storage space, and shipping logistics. 

As a result, it has gained traction in the Nigerian market in recent years as it is a cost-effective way for entrepreneurs to start an online business without needing physical inventory. 

Benefits of Dropshipping in Nigeria

There are several benefits of dropshipping in Nigeria; some of them include:

  1. Low Overhead Costs: Dropshipping requires minimal inventory investment so that you can start your business with little or no budget.
  2. Flexibility: Dropshipping allows you to work from anywhere and at any time, as long as you have an internet connection.
  3. Wide Range of Products: With drop shipping, you can offer a wide range of products without worrying about inventory management. Sell whatever you want from multiple suppliers.
  4. Minimal Risk: Dropshipping is less risky than traditional retail because you don’t have to hold inventory.

Seven Steps on How to Start a Dropshipping Business in Nigeria

Now that we know what dropshipping is and understand its benefits, how do you start it in Nigeria? 

Step 1: Choose Your Niche and Products

The first step in starting a dropshipping business is to choose a niche and the products you want to sell. A niche is a specific area of focus within a larger market. Choosing a niche you are interested in and knowledgeable about is essential. It will make it easier to identify the best products to sell, and you can create marketing plans that’ll resonate with your target audience.

Once you’ve chosen your niche, research the best products to sell. Look for products that are in demand, have a high-profit margin, and are accessible to source from reliable suppliers. You can use tools like Google Trends, Amazon Bestsellers, and Oberlo to help you find popular products.

Step 2: Research Suppliers

There are various online suppliers, depending on what you want to sell. However, your dropshipping business’s success depends on finding reliable suppliers who can provide quality products at competitive prices. 

When researching suppliers, look for those who have a good reputation, offer fast shipping, and have a wide range of products.

There are many dropshipping suppliers that you can use, including AliExpress, SaleHoo, and many more. You can also consider using local suppliers in Nigeria to reduce shipping costs and improve delivery times.

Step 3: Create Your Online Store

Now that you have chosen your niche, products and a reliable supplier, it’s time to create your online store or decide on the platform you’d use for sales. 

You can use e-commerce platforms like Shopify, WooCommerce, or WordPress to set up your store or decide to sell on platforms like Instagram, Snapchat, and WhatsApp. 

However, while creating your online store, choose names or domain names that are easy to remember. Then design your website and add your products. Ensure your website is easy to navigate, visually appealing, and mobile-friendly.

Step 4: Research Delivery Options

Your dropshipping success or failure depends mainly on delivery, especially in the Nigerian market. So therefore, to run a successful dropshipping business, you must either deal with reputable delivery agents or partner with your hosting platforms, such as Shopify, to set up delivery. 

Step 5: Set Up a Payment Platform

This should be pretty straightforward. However, Shopify provides payment apps and getaways to set up your payment processor. Also, since many of your transactions with supplies will involve foreign currency, you can set up your payments with  Grey.

With Grey, you can send money to any foreign account, including your supplier’s account, without any stress or hidden fees. 

You can also use it to receive payments from your earnings if you’re dropshipping with partners like Amazon FBA.

Step 6: Market Your Business

Now that your online store is running, it’s time to start marketing your business. There are many ways to promote your dropshipping business, including;

  • Social media marketing: Use platforms like Facebook, Instagram, and Twitter to reach your target audience and promote your products.
  • Content marketing: Create blog posts, videos, and other content that educates your audience about your products and industry.
  • Influencer marketing: Partner with influencers in your niche to promote your products to their followers.
  • Search engine optimization: Optimize your website for search engines to improve your rankings and drive more traffic.

Step 7: Manage Your Business

As your dropshipping business grows, it’s essential to manage it effectively. This includes tracking inventory, promptly fulfilling orders, and providing excellent customer service.

You’ll also need to continually analyze your business metrics, such as your conversion rate, customer acquisition cost, and lifetime value. This information will help you identify areas where you can improve your business and make data-driven decisions.

In conclusion, dropshipping is a viable business model for entrepreneurs looking to start an online business in Nigeria. 

However, starting a dropshipping business requires research, planning, and execution. When it comes to sending and receiving funds, as that is one the major challenge faced by Nigerians, it is important to sign up for reliable platforms makes it easier to transact globally and that where Grey comes in.

Grey allows you to open a foreign currency account to receive payments from anywhere. Get a free account today to make international payments or convert foreign currencies to Nigeria Naira.

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