There's a hot trend in e-commerce called dropshipping, and it's taking the continent by storm. Here's the deal: with dropshipping, you become the middleman, connecting customers with awesome products from suppliers without ever needing to hold any inventory yourself. Pretty cool, right?
Global dropshipping is expected to hit a whopping $301.11 billion by 2024. Interestingly, Africa is getting a piece of the pie too! The African dropshipping market is projected to skyrocket from $10.7 billion in 2021 to $41.8 billion by 2028. That's a massive jump! So, if you're looking for a way to jumpstart your e-commerce business without a huge investment, dropshipping is worth exploring.
The Ease of Dropshipping
Apart from the growth in the dropshipping market, both globally and continentally, SMEs and aspiring entrepreneurs in Nigeria can benefit from using this business model by leveraging the ease that comes with doing dropshipping, namely:
- Easy On Your Wallet: It lets you skip the high costs of buying and storing inventory, renting warehouses, or opening a physical store. This makes it a budget-friendly option for new entrepreneurs.
- Low Overhead: Since you don't manage inventory, your ongoing expenses are minimal. This frees up money to invest in growing your business.
- Easy Setup: With many online resources and tools available, starting a dropshipping business is easier than ever.
Is Dropshipping Legit in Nigeria?
Good news! Dropshipping is legal in Nigeria. But remember, with any business, it's important to play by the rules. Make sure you follow all the business and tax regulations in Nigeria to keep things smooth sailing.
Advantages of Starting a Dropshipping Business in Nigeria
- Start Small, Dream Big: Dropshipping lets you launch your online store without a huge upfront cost. All you need is a website and hosting, so you can skip the big investments needed for traditional businesses.
- Nigeria's E-commerce Boom: More and more Nigerians are shopping online, especially young people and those with growing incomes. This booming market gives you a chance to meet customer needs and ride the wave of e-commerce growth.
- Low Risk, High Reward: Dropshipping is a low-risk way to become an entrepreneur. There's not much money needed upfront, and you can grow your business as demand increases. This means you can potentially make good money with less risk.
- Endless Products, Zero Stock: With dropshipping, you can offer a wide variety of products without having to store them yourself. Partner with different suppliers to create a diverse selection that attracts more customers and makes your business stand out.
Steps to Launching a Successful Dropshipping Business In Nigeria
Choosing a profitable niche
The first step is finding a product category you're interested in with a good market. Research who you want to sell to (your target audience), what they need, want, and struggle with (their pain points). This will help you choose products they'll love. There are online tools like Google Trends and Keyword Planner that can show you how popular certain products are and how many people are searching for them. This way you can identify the niche that works best for you.
Don’t stop there, though. You can go ahead to craft your winning strategy after choosing a niche. This strategic plan should highlight what makes you special (your unique value proposition) and why people should choose you over competitors (your competitive advantage). A strong strategy will help you grab attention and win over customers.
Finding reliable suppliers
Now that you’ve identified your niche, the next step is to find a reliable supplier to source your products. It is important to state that your suppliers are vital in fulfilling orders and ensuring customer satisfaction. So when choosing a supplier, find one with a track record of timely delivery, reliability, good communication, and quality. Because you will be dropshipping in Nigeria, it will be best to partner with a local supplier to reduce shipping time and costs; this will not only benefit you but also support the local economy.
Here are some factors to consider when looking for suppliers:
Consider product quality.
Shipping availability and pricing
Customer service.
Supplier Reputation: Before registering or connecting with suppliers on the platform as mentioned earlier, evaluate and review their performance before working with them.
Establishing transparent communication channels and building a collaborative relationship with suppliers will help avoid problems and ensure successful collaboration down the line. To get started, you can explore sites like Shopify, Alibaba, and AliExpress.
Setting Up Your Online Store.
Now for the fun part - creating your online store! Choose a platform that's friendly to Dropshippers, like Shopify, Konga, Bumpa, WooCommerce, and Jumia. These platforms are easy to use, offer customizable templates to match your brand, and have lots of add-ons to make your store work smoothly. Once you have selected your preferred platform, follow these steps to set up your online store.
Pick a Template: Choose a pre-made design that reflects your brand and works well for your product niche. Most platforms offer free and paid options designed for different industries and product types. Make sure the template works well on mobile phones and loads quickly.
Make it Yours: Tweak the template to match your brand's colors, logo, and style. Change the fonts and colors to personalize the layout.
Build Key Pages: Create essential pages like Home, About Us, Contact, and a Frequently Asked Questions (FAQ) page. Fill these pages with engaging and informative content that reflects your brand voice.
Stock Your Virtual Shelves & Open for Business!
Now that your store is ready, it's time to add your products! Make sure you:
List Your Products: Add your products to your online store.
Have Compelling Content: Write detailed descriptions that highlight the features and benefits of each product.
Use Quality Pictures: Incorporate the use of high-resolution images that showcase your products from different angles.
Price it Right: Set competitive prices to attract customers.
Getting Customers to Your Store.
Just like a lonely shop in a deserted area, an online store without customers won't make many sales. Here's how to attract an audience and turn them into buyers:
Social Media Marketing: Use platforms like Facebook, Instagram, YouTube, or Twitter to reach potential customers and drive sales.
Market Research: Understand your target audience, competitors, and industry trends. Use reports, surveys, and online tools to gather data.
Content Marketing: Create engaging content (blogs, videos, infographics) that informs, entertains, and offers a solution to your customers. Research and be mindful of keywords that people are searching for.
Paid Advertising: Run targeted ads on Facebook, Instagram, and Google Ads to reach a wider audience and gain visibility for your store
Influencer Marketing: Partner with relevant influencers and bloggers to boost your reach and credibility.
Track and Adapt: Monitor your marketing performance and adjust your strategies to improve results and maximize return on investment (ROI).
Optimize and Refine.
As sales start rolling in, continuously refine your business for ongoing success. Track your store's performance closely, analyze sales data, and identify areas for improvement. Be ready to update product listings, adjust shipping options, and refine your marketing strategies to keep your store fresh and captivating for customers. This constant evaluation and adaptation will ensure your dropshipping business thrives in the long run.
Bonus Tip: Partner with a Reliable Shipping Provider
Fast and reliable delivery is key to making customers happy. When you partner with DHL for all your order fulfilment, you will always enjoy delivery solutions tailored to your needs. As a leading global logistics provider, DHL Express can help enhance various aspects of your dropshipping operations, whether it is ensuring customers receive their orders on time or navigating holiday shipping deadlines. Find out more by opening a DHL Express business account today.
