HOW TO START AND RUN A SUCCESSFUL DROPSHIPPING BUSINESS IN NIGERIA

Dropshipping is not a new term to those who have been in online/ecommerce business. But for someone who is new to the online business, dropshipping might seem difficult,competitive and  sometimes intimidating. They are often confused with the term dropshipping and how it works. 

This post is carefully written to discuss in details everything you need to know about starting your dropshipping business in Nigeria. It discusses about its definition, how to start and how to get reliable supplier for your products.

              WHAT IS DROPSHIPPING

Dropshipping is a supply chain management business method which enables a company, an individual or group of people to operate and run their business mostly ecommerce without maintaining inventory, owing a warehouse, stocking their products or even shipping their products to their customers.

Dropshipping simply works like this;

• You contact suppliers and pick products that interests you.
• You display their photos on your ecommerce store or your social media page.
• A customer likes the products and places an order.
• You as a retailer automatically or manually forward the order and your customers details to your dropship supplier.
• Your dropship supplier packages and ships the product/products directly to the customer in your name.
• You get paid your commision.

Dropshipping stands an advantage over the standard retail business because the selling merchant/dropshipper don't have to stock his/her products or even own or rent a shop.

BENEFITS OF STARTING A DROPSHIPPING BUSINESS IN NIGERIA.

1. Less capital : You don't need thousands to start running your dropshipping business today. All you need is launch an ecommerce store or better still, post your products pictures on your social media pages. In dropshipping, you don't need to purchase a product until you have been paid by the customer.

2. Easy to get started : Dropshipping has made it much easier to run an ecommerce business because here, you don't deal with the physical product, you don't need to own or rent a store or space. Sometimes, you don't need to pack and ship your products.

3. You can do it from home: Many dropshippers run their businesses from the comfort of their homes. Since you are not dealing with any physical product, all you need is a laptop or even a good smart phone and a good internet connection.

4. Flexible location: You can run your dropshipping business from anywhere in the world with an internet connection. What is needed is the establishment of communication between a supplier and your customers.

5. Wide selection of products: With dropshipping, your choice is open to different products/items. You can offer as many products as you want to your potential customers on your website or social media account.

THINGS TO CONSIDER WHEN CHOOSING YOUR PRODUCTS.

To run a successful ecommerce and dropshipping business, you have to source and select the right product to sell. To achieve this, you have to have a picture of the type of products you want to deal on at the back of your head. 

There are also factors that will help you determine the products that will work well with dropshipping. A lot of criterias should be checked and they include:

1. Size and weight: This factor is very important and should be considered when choosing your products. The cost of shipping and sending heavy and large product is higher compared to small and light products. You can still make profits with big and heavy products, but starting with smaller and less heavy product is advisable.

2. Price: In dropshipping,the retail and wholesale price is paramount. Lower priced products encourages higher sales but sometimes with little profit than the higher priced products.

3. Durability: The durability of the product you display as a dropshipper should be positive. Although disposable and renewable products sells higher,durability should always be checked.

4. Rate of turn-over: Check the rate at which the products you are selling are changed, updated, discounted and requested.

Related post: How to start a business in Nigeria without money.
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HOW TO FIND SUPPLIERS FOR DROPSHIPPING

Finding the right supplier for your dropshipping business is one of the questions people always ask about dropshipping. Search engines like google is there but people often neglect it. Use search engines to source suppliers/manufacturers.Obtain their contact details and make sure to run a background check to validate their authenticity. Send them an email stating your interest to be their dropshipper and include some vital question like:

• Are you the manufacturer or a wholesaler?
• What is your price range?
• Are your prices negotiable?
• Are there any additional costs to the direct cost?
• Do you have return policy?
• What type of profit margin can i expect?
• Do you have guarantee for your products?
• Do your prices fluctuate sometimes?
• Do you have a representative to answer any quetions/queries?
• Do you use data feed?

The above question guarantee your seriousness and protect you againt being cheated.

There are scam sites online and there are ways to detect them. Any website with no address is obviously a scam. There are also tools online like Check the age of a domain which will help you check the facts and authenticity of a supplier claims. Newer domains sometimes are scam sites especially when it doesn't match your answers.

You should also

• Check some reviews about the supplier online.
• Find out if the business site/name is registered and their warehouse/office addresses fully written.
• Contact the supplier/manufacturer directly and ask any question.
• Any website that ask for upfront fee is obviously a scam site.

 DROPSHIPPING MISTAKES YOU SHOULD AVOID

Many new dropshippers make some common mistakes when picking their product resulting to poor or no sale.

Some common mistakes that should be avoided when picking a product for dropshipping includes:

1. Always base your product decision and choice on facts abd research, not on what you like and dislike.

2. Don't base your product selection on what others are doing or have done. Carry out some market research on google tools like  google trends to help evaluate your choice.

Conclusion:

This post contain all you need to know about starting and running a dropshipping business in Nigeria. Don't forget to leave a comment and kindly share this posts on social media.