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Dropshipping in Nigeria: The Ultimate Guide to Get Started 2022/2023

  • October 14, 2022

Have you been hearing about dropshipping here and there on the internet, and how massively profitable it is, but wondering if you can start it in Nigeria, or how you can start it in Nigeria? Then this post is for you!

Dropshipping in Nigeria is a very lucrative business that most people barely consider, as they thought it won’t work, or it requires a lot of capital to start, which is not true.

The business doesn’t cost you a lot to start, and it works well in Nigeria, because technology keeps advancing across the country, and people now buy stuff online without worrying whether it will be delivered or not.

Although not much money is required to start a dropshipping business in Nigeria, you need prior knowledge of the business before venturing into it. That is what this post is all about.

Here today, we will discuss exactly the step-by-step method on how to start dropshipping in Nigeria, how much is needed to start, where to buy products, how to sell products, and lots more.

If you’re ready to know all that, let’s get started then!

What is Dropshipping?

Dropshipping is a retail fulfillment method where instead of keeping products in stock, sellers (Dropshipper) purchase them from third-party suppliers and have them shipped directly to buyers (customer) without having to see or touch the products.

Dropshipping in Nigeria

Dropshipping business in Nigeria
Image by Freepik

Dropshipping in Nigeria also works the way dropshipping works all over the world. That is, sellers buy products from suppliers, and the suppliers ship the product to the final consumers.

Dropshipping is a great business idea for those looking for work-from-home jobs, as you don’t even need to leave your home to make money. The business is not too competitive and very profitable in Nigeria.

Shopify is popular for dropshipping worldwide. In fact, the business is called Shopify dropshipping by many people. However, with lots of tech innovations in the country, there are many Shopify alternatives to dropship in Nigeria.

One amazing thing about dropshipping business in Nigeria is that you can start in Nigeria targeting US buyers. That is, as a Nigerian, you too can start the popular Shopify dropshipping business model. Although it requires a lot of money, the profit is massive since you’ll be making money in dollars.

Dropshipping comes with little risk, it doesn’t require any legal business registration, and it is highly scalable.

Read Also: How to Make Millions Starting Mini Importation from China To Nigeria

Is Dropshipping Profitable in Nigeria?

Yes, dropshipping is very profitable in Nigeria. You can make hundreds of thousands if not millions of Naira dropshipping just one product.

Product cost, shipping fee, and the cost of adverts usually determine the profits per product. The profitability of a dropshipping business in Nigeria also depends on the country you’re targeting.

For example, if you started a Shopify dropshipping in Nigeria targeting US buyers, you could make about $10 profit which is a lot after converting it to Naira per product. If that same product is dropshipped to Nigeria, you may make just 1500 in profit.

Overall, whether targeting the US, UK, or Nigeria, there’s a lot of money to be made from the business. The more units of products sold, the more money you’ll make.

Is Dropshipping Worth it?

With a reasonable profit margin and little risks involved, dropshipping is worth your time and money if done the right way.

Just like every other business, there are some downsides to the business, as well as some merits of dropshipping business in Nigeria. Check them out below!

Pros of Dropshipping in Nigeria

  • You can start the business with less than 50,000 Naira in Nigeria
  • Unlike mini importation, you don’t need to see, touch, or deliver the products yourself to buyers.
  • You can make millions of Naira dropshipping from Nigeria.
  • From Nigeria, you can target and dropship to any country worldwide including the US and UK, where the most money could be made dropshipping.
  • As a beginner, you can use multi-vendor ecommerce websites including Jumia and Konga to start the business, since Nigerians already trust the platform.
  • Dropshipping doesn’t require an office
  • Dropshipping is scalable

Cons of Dropshipping in Nigeria

  • The profit margin is usually low which means you’ll have to sell hundreds of products to make a reasonable amount of money.
  • Dropshipping costs a lot in terms of advertisement.
  • Due to the high level of internet fraud in the country, it could be really hard for people to trust your website in Nigeria. Although this is not the case when drop shipping to other countries.
  • Payment gateways may be a problem while targeting other countries.

Related: How to Make Money in Nigeria Selling on Jumia

How to Start Dropshipping in Nigeria

1. Get Yourself Ready to Start

Just like any other business, you need to understand what you’re getting into. Of course, dropshipping is very profitable but takes a significant commitment and long-term perspective to see success.

If you start with the mindset of making millions in a few weeks working just 3 hours daily, I’m sorry you’ll need to find another business. With that mindset, you’re likely to quit a week after starting if you don’t see any satisfying results yet.

To get yourself ready, you need to approach the business with realistic goals. Commit your time to learn, learn, and learn. In the start, don’t get too carried away by YouTube videos showing you how the make millions in just a week, instead focus on the challenges and how to grow.

Keep in mind that as a beginner, dropshipping requires a heavy investment of time or money, or both. You need to carry out a lot of research and get yourself ready, then you can get started.

2. Pick a Niche

While getting yourself ready, you would have come across the words niche and product research.

As a beginner, picking a niche you’re already familiar with will set you on a quick path to success. This is because you will have to understand how the niche works, what time of the year the products sell the most, what type of people use the product, etc.

From home appliances, kitchen utensils, and gardening niches to jewelry, clothing, and gadgets, there is a wide range of niches that are profitable in dropshipping.

However, spreading across all niches could be where things will start going wrong. For a start, stick to one niche at a time, although you could sell multiple products in that niche.

Related: How to Start a Successful Real Estate Business in Nigeria

3. Find Products

After knowing the best niche for you, the next thing is to find products in that niche. While there is a wide range of products in a niche, ensure you source for the most profitable, and trending products.

Product research is key to the success of your business. Here are some things to keep in mind while finding products.

  • What is the profit margin of the product?
  • Does the product solve a problem?
  • Are people already dropshipping the product?
  • How long will the product take to get to the buyer (shipping time)?

There are many ways to carry out product research, and they can be classified into manual product research, and the use of third-party websites to find winning products.

You can find winning products manually, by first going to suppliers’ websites like Aliexpress, Alibaba, or DHgate, looking for best sellers, and the products with the most recent reviews. You can also use Amazon to source for best sellers.

Another way to carry out manual product research is through social media. There are lots of dropshippers running ads on Facebook, TikTok, and Instagram every day. Just browse through these social platforms, and you’ll find some products to start with.

While manual product research requires expertise and also takes time, there are some websites that use AI (Artificial Intelligence) to source winning products that you can sell. These sites include Bigspy, Adspy, etc.

Check Out: How to Start POS Business in Nigeria and Make up to 20K Daily

4. Choose a Dropshipping Supplier

One of the most important things in the dropshipping business is suppliers. After finding products to sell, you need to source for suppliers with the product whom you can buy from.

A lot of people into the dropshipping business in Nigeria usually use Chinese suppliers. You can find these suppliers on websites like Alibaba or Aliexpress.

While there are lots of dropshipping suppliers from China, you need to take note of some things while looking to work with one.

  • What is the rating of the product from the supplier? – 90% and above is perfect.
  • How seamless is the communication with the supplier? – Make sure they reply fast.
  • How long will it take before the product gets to the buyer from the supplier?
  • What is the shipping cost of the product from the supplier?
  • Which courier service does the supplier use?

Related: How to Start a Logistics Business with Low Capital in Nigeria

5. Build Your Online Store

Online store

After you find a good supplier to buy the products from, the next thing is to open an online store where you can list your products and start selling.

Like I said earlier, Shopify is the most popular way to quickly create a dropshipping website within minutes. There are alternatives like WooCommerce, Bigcommerce, Flutterwave Store, Pocket, etc.

You can also make use of some free multivendor e-commerce websites like Jumia, and Konga. They allow you to create a seller account, list your products and sell them mainly in Nigeria.

6. Promote Your Products

After setting up your store and listing the products the next thing is to drive traffic and start getting sales.

Unlike mini importation where you can advertise through word of mouth and even have potential customers test the product before purchase, everything about dropshipping including marketing is online.

To get sales, you’ll need to drive traffic to your site either by using free methods or paid methods. The free method includes posting your products on social media by yourself including Facebook groups, creating TikTok videos, Instagram posts, and even WhatsApp status and broadcasts.

If you’re serious about the business, going with the paid method of marketing your product is by far the best. This will help you target a bigger audience, specifically those that will be interested in your products, and also reach more targeted locations, e.g if you want to target US or UK buyers.

Facebook and Instagram ads are good platforms to start with paid advertisement. TikTok too offers a great platform to market your products through paid ads to reach a more targeted audience.

7. Manage Your Finances

Now that dropshipping has become your business, as an entrepreneur, you must learn to get your finances in order. Of course, you can start dropshipping in Nigeria with your personal savings, as you grow, you’ll need to learn how to separate personal finances from business finances to avoid hindering long-term goals and growth.

Related: How to Start a Dispatch Rider Business in Nigeria

Which Niche is Best for Dropshipping in Nigeria?

There are a lot of niches you can get started with dropshipping in Nigeria. Regardless of the one you pick, there’s a lot of money to be made as there are all profitable.

Here are some of the best niches to start with as a beginner in dropshipping.

  • Phone Accessories
  • Hair Extensions and Wigs
  • Kids and Babies
  • Clothing and Fashion Accessories
  • Home and Kitchen

Dropshipping Business in Nigeria – FAQs

Does dropshipping work in Nigeria?

Yes, dropshipping works in Nigeria. You can either dropship within Nigeria or target other countries like the US and UK with your business.

Does Jumia have dropshipping?

To dropship on Jumia, you’ll need to register on the platform, and list your products, and once you get an order, you can buy the product from your supplier and have it shipped directly to the buyer.

What is the minimum amount to start dropshipping in Nigeria?

Realistically, the minimum amount to start dropshipping in Nigeria is 10,000 Naira, and this will only purchase one or two products from the supplier. For bulk product purchases from China, you’ll need about 300K to start Aliexpress dropshipping in Nigeria.

Can I use Shopify in Nigeria?

Dropshipping on Shopify is 100% possible in Nigeria, as the platform allows Nigeria to sign up and use the service they offer.

How can I start dropshipping for free?

You can start dropshipping for free in Nigeria by using Jumia or Konga as your means of selling. Find and list your products on those sites, then promote them using free methods to drive sales.

Does AliExpress ship to Nigeria?

Yes, Aliexpress ships products to Nigeria. Whether as a final consumer or Aliexpress dropshipping you can order goods on the platform and have them shipped to Nigeria.

Conclusion

Whether you call it Shopify dropshipping, Aliexpress dropshipping, or Jumia dropshipping, the business is a very profitable one that can be done from the comfort of your home risk-free. With this post on how to start dropshipping in Nigeria, I believe whether you’re a beginner or already have a little knowledge about dropshipping, you now know how it really works and how to get started.