5 Straightforward Steps to Begin Dropshipping in Nigeria

Dropshipping is quickly becoming one of the most profitable business ideas. While there is no easy way to make money, dropshipping stands out as a stress-free, low-budget entrepreneurial venture.

The rapid growth of e-commerce platforms like Shopify, Jumia, Konga, and Dealdey in Nigeria presents a great opportunity for small-scale online retailers. Interestingly, you can set up an e-store at almost no cost. Sounds exciting, right?

This guide will walk you through the step-by-step process of starting a dropshipping business in Nigeria, from selecting a product to marketing your goods, all from the comfort of your home.

What is Dropshipping?

Dropshipping involves forming an agreement with a supplier to sell their products in your store. While you focus on marketing, the supplier stores the product and ships it directly to your customer when an order is placed.

This means you don’t have to handle inventory, rent warehouse space, or even see the product physically.

Are you considering starting a dropshipping business in Nigeria? Thousands of Nigerians are already leveraging this business model, making substantial monthly earnings.

You can begin as a side hustle or go full-time, quitting your 9-to-5 job.

Why Start a Dropshipping Business in Nigeria?

Dropshipping in Nigeria is a promising venture. With over 200 million people, the market is vast and full of potential customers.

According to Internet World Stats, Nigeria ranks first in Africa for internet users. Additionally, the country is among the leading e-commerce markets, with nearly 50% of its population under the age of 30. This means a large portion of tech-savvy and online shoppers.

Is Dropshipping Legal in Nigeria?

Yes! Dropshipping is completely legal in Nigeria. You do not need to pay any special taxes or obtain specific legal documents to start.

Unlike traditional businesses, dropshipping does not require CAC (Corporate Affairs Commission) registration unless you want to formalize your business as it grows.

So, with no legal barriers or extra taxation, starting a dropshipping business in Nigeria is hassle-free.

How to Start a Dropshipping Business in Nigeria

Here are five easy steps to launch and grow your dropshipping business successfully:

Step #1: Pick a Niche and Product

The first and most crucial step is identifying a niche.

What is a Niche?

A niche is a specific segment of a broader market. For example, televisions are a niche within the home appliances industry. Further, LED and LCD TVs are sub-niches of the television category.

Many beginners fail by choosing oversaturated niches dominated by big brands. Instead, consider these factors when selecting a niche:

• Choose a niche you are passionate about.
• Identify a common problem that your product can solve.
• Research your competitors.
• Ensure your niche is profitable.

Step #2: Find Reliable Suppliers

After selecting a niche, the next step is sourcing products from reliable suppliers. Your choice of suppliers can determine your business success. Here are some top recommendations:

Oberlo

Oberlo integrates seamlessly with Shopify, allowing you to import products from suppliers and sell them effortlessly.

AliExpress

AliExpress is a popular wholesaler where Nigerian drop shippers connect with manufacturers and suppliers across 40+ niches.

Chinabrands

Chinabrands provides global dropshipping services, shipping products to over 200 countries.

Step #3: Set Up Your Online Store

After securing a supplier, you need to establish an online store. You have two primary options:

1. Sell on Third-Party Platforms

Some of the best Nigerian e-commerce platforms include:

• Jumia Nigeria: Nigeria’s most visited e-commerce website.
• Konga Nigeria: Offers warehousing and fulfillment services.
• Kaymu: Allows sellers to showcase products.
• Dealdey: Promotes local businesses through discounted deals.

2. Create Your E-Commerce Store

If you prefer more control over branding and pricing, build your store using:

• WordPress + WooCommerce: Requires a domain, hosting, and WooCommerce plugin.
• Shopify: Easier to set up, starting at $29/month with a 14-day free trial.

Step #4: Market Your Products

Customers won’t find your store unless you actively market your products. Here are some effective methods:

Paid Marketing Methods

1. Facebook Ads

• Targets specific demographics (age, location, interests).
• Flexible budget control.
• Instant visibility and engagement.

2. Google Ads

• Increases exposure via search engine results.
• Targets users based on language, device, location, and behavior.

Free Marketing Methods

1. Content Marketing Create a blog, Instagram posts, or YouTube videos to attract and retain customers.

2. Social Media Marketing Promote products on social media platforms like Instagram, Twitter, and Facebook.

3. Email Marketing Build an email list and send regular promotional offers to potential customers.

4. Forum and Blog Engagement Join niche-related forums and participate in discussions to establish authority.

Step #5: Test and Optimize

The last step is to test different strategies to find what works best. Dropshipping allows you to experiment with products, marketing techniques, and suppliers with minimal risk.

• Start with multiple products to see what sells best.
• Track customer feedback and adjust your product selection.
• Optimize your marketing strategy for better conversion rates.

Final Thoughts

Starting a dropshipping business in Nigeria is simple and cost-effective. To recap, follow these five steps:

1. Choose a niche.
2. Find reliable suppliers.
3. Set up an online store.
4. Market your products.
5. Test and optimize for success.

With no need for inventory or a large investment, dropshipping is an excellent way to build a business with minimal risk. So why wait? Start your dropshipping journey today!