How to start dropshipping business in Nigeria
Have you been wondering and looking for how to start a dropshipping business? You’re at the right place to learn more about this business.
Drop-Shipping entails not having to pay a supplier for goods before delivering them to customers.
You transact a business somewhat on behalf of a supplier.
But in entering into such business domains, several factors must be considered: such as the types of goods you want to run the business on, then the suppliers of the goods and the ones that are willing to do drop shipping, the state permissions, and due formalities must be observed.
If you are thinking about starting a dropshipping business, here are the steps you will need to follow to succeed in the business.
Steps needed on how to start dropshipping business in Nigeria
1.Choose a Niche and Specific Products
You would have to decide which type of products you want to deal with; the consequences of your choice have to be one that you are sure to add value to.
Experts believe that the niche you choose should not be one in which the products cost too cheaply or too high; a range of say $90 to $250 would do well in this business.
When choosing a product, watch out for several indicators like the demand parameter of that product and the ease of conveyance to prospective customers; this would require you to conduct a market survey or feasibility study.
Speak with individuals around to find out what products they are willing to buy a sort of questionnaire approach.
2.Establish Connections with a Manufacturer or Supplier
At the early stages of this business, you would have to search online for suppliers and manufacturers willing to drop ship; it might be slightly challenging, but as the company matures, you would establish a quarter for yourself in the dropshipping world.
Get contacts of these suppliers on the internet, and reach them.
Conduct a pseudo-interview on them; enquire how long it takes them to make deliveries, how much they charge, their warranty status, their charges, and the status of their warranty.
Now, to stay on top, you can also carry out investigations as to the suppliers that your competitors are working with and possibly liaise with them.
Most new individuals to this business often encounter a situation where the suppliers require you to provide a license or formal permit to resell the product.
3.You have to Decide on the Structure of the Business
Next, you must fundamentally sketch the structure of your business.
Do you intend to run the business alone as a sole proprietor? In this case, you are solely responsible for the costs and profits.
Different states and locations have their registration requirements; you would find out and meet them.
You could also go into partnership, especially if funds are a significant issue and do the registration. There is also the option of going into a franchise.
4.Get a Federal Tax ID
You would need a resell certificate, as it would afford you the privilege of not having to pay all the taxes paid by firsthand sellers.
You get the right to resell what you ordered from your supplier. Another important thing is the federal tax ID.
This is a number associated with your business that would set you’re your business as a legally recognised structure by the government of your locality.
5.Choose a Selling Platform
You have to consider which of the major platforms to employ in making your sales.
There are major cyber structures, including Amazon,eBay, Jumia, Konga, Jiji, and a host of other online stores, that give you the chance to do your business online.
All you need do is showcase your product, and with the quality advertisement, you make your sales.
But more utilised are eCommerce stores like Shopify and SaleHoo that gives your customers the absolute best feel they get from marketing.
You would have to use a payment method in the course of doing this, as well as design your website in such a way as to provide customers with a cart structure that makes it possible to have the shopping experience.
A good payment scheme is PayPal.
6.Manage your Listings
You can ask your supplier if you can advertise their products on your website and do so as soon as you get the consent.
Guide yourself with the tips mentioned above: bestselling products and price optimisation.
If you deal with multiple products, do well to organise your sales platform to allow for efficient navigation for your customers.
List your products accordingly, and ensure that it is easy for their prices to be determined by your customers.
Also, make it explicit what services you offer that makes you stand out among your competitors; why you are their best choice.
7.Advertise your Business
Upon the launching of your dropshipping business, you would have to face the first stage of advertisement.
Take good advantage of social media and promote your business; Facebook, YouTube, Reddit, and Instagram are exceedingly helpful in this regard.
I will suggest using paid advert on Facebook to direct traffic to your sales page.
It works better and faster than free advertising or waiting for customers to land on your sales item.
Now know how to start a dropshipping business in Nigeria; your learning doesn’t just end here; widen your knowledge about this business.