Dropshipping business is very profitable and can be done successfully in Nigeria. It is a practical way of buying products personally from a wholesaler and shipping them directly to your customers.
- Drop shipping is an established online business that is real and working.
- It is like real estate business.
- Dropshipping is like having a physical store that is owned by someone else.
- It is a retail fulfilment pattern where a store does not keep the products it sells in stock.
- As a drop shipper you will not even see nor handle the products. This is a business you can carry about in your pocket and be making thousands of Naira every passing day.
- You need a platform to use in sharing these products to clients from a wholesaler.
- You are the one to determine the price you will sell a particular product to make profit. And once a buyer pays for the product you pay the wholesaler the amount he/she sells the product. You keep back the amount on top as your profit. After that you send the buyers details for the wholesaler to ship the product directly to the buyer.
SOME COMPANIES THAT OFFER DROP SHIPPING BUSINESS
Alibaba, Aliexpres, Chinavasion etc offers drop shipping. A company like Alibaba is filled with manufacturers and they offer factory prices. Alibaba offers 71b dropshipping products to Nigeria. 61% airfreight,
Others are Shopify,, EBay and Amazon all these are foriegn companies. Here in Nigeria we have Konga and Amazon.
HOW TO START DROPSHIPPING BUSINESS
This business involves selling of products and services so you have to identify a niche to focus on. That is you need to chose products that fancy your interest but they have to be fast moving products. You have to partner with a wholesaler.
THINGS NEEDED FOR DROPSHIPPING BUSINESS
- Laptop or phone
- Website or any other platform you choose
- Market store (online)
You need a website to list products and display their images. By copying and pasting those products in your site.
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Choose a domain name that is easy to pronounce and memorize. Open an account with any of the online market platform you chose. Provide all the necessary information that is required and enter into agreement with a wholesaler.
WHY YOU SHOULD START A DROPSHIPPING BUSINESS
- It is very flexible, you can decide when to add stocks inside your site and when to do whatever. That is to say you are in total control of your site
- Dropshipping business can be done by anybody; student, worker, retiree, housewife, youth corper, name it.
- You can do the business from the comfort of your home.
- Drop shipping is not technical, it is very simple to do. It involves getting in touch with a wholesaler, enter agreement, copy products from their store and paste them in your site, QED.
- The amount you need to start is zero but you have to own or buy a system (laptop, computer, tablet) and data.
- The profit is high because you will be selling in volume and you can sell many products as possible without much expenses. The only expenses will be data and power (fuel or electric).
MARKET STORES FOR DROPSHIPPING BUSINES
This is considered to be the best option in running an e-commerce store and dropshipping business. The payment option here has been integrated to accept all major credit cards such as; visa; master card, American Express, Discover. Others are; Bitcoin, PayPal, etc. These are globally accepted in other to make you sale globally too.
Domain name is your store web address and the hosting account will be where your site is hosted on the web. In other words this is where you are to store all your products just like you will in a physical store.
You will have to install WordPress on your hosting account then install and activate the woocommerce plugin. These will enable you to set up your store with payment gateway integration so you can start selling any product of your choice to any country in the world.
But getting approval is not easy; use a stripe gateway option in other to get approved by independent store. This option gateway will enable you to withdraw money from your sale to your local bank account. With a private independent route like this you will have control of all your dropshipping business. And operate it as you like.
AMAZON AND EBAY DROPSHIPPING
This kind of drop shipping option seems to be the simplest as such more preferred by many operators. It is said to be one way, very fast and cheap to start. This is because domain name and hosting is not required, you are not to pay any monthly fees for your store such as done in Shopify and BigCommerce (no payment of gateway).
Here you sale in an already established platform but you will require Amazon account, EBay account, paypal business account, credit card (VCC), VPN software. Some operators believe EBay and Amazon to be the best option. Because there is an already existing large audience to sell products to. Unlike other dropshipping option you don’t need advert before making sales.
But it has its many challenges; such as getting acceptance, Amazon and Ebay do not permit certain countries like Nigeria to sell on their platform. Because of that finding a way to get in becomes a difficult task. Also you are not in control of the shop it can be shut down at anytime especially if there are many negative reviews about you.
EBay will only release your money after 90 days . Meaning you will be using your money to buy from Amazon for the person that ordered your product on EBay. And if eventually the buyer returns the product that means your money is wasted.
The platform is arranged in a way that you don’t sell on Amazon but on EBay and will have to use Amazon as the supplier/dropshipper.
The advantage of this method is that the people involved have done their researches and confirmed all products to be original before listing. Amazon can deliver in a day and can also offer free delivery. What you should do is to find out the seller (drpshipper) who is offering free shipping and increase your profits from that.
SHOPIFY AND BIGCOMMERCE
It is equally very easy and fast, no domain hosting is required like Amazon and EBay option. To start with BigCommerce you will be required to pay $29.99/month as a starting plan fee for your store.
Shopify is cheaper than BigCommerce you will be required to pay $9/month. This is not advisable for a starter. The only option is to open a shopify partner account that doesn’t require monthly charges or you install Oberlo app.
CHALLENGES OF SHOPIFY DROPSHIPPING BUSINESS
Payment gateway is a bane to dropshipping business in Nigeria this is due to non acceptance of Nigerians in most of the online market stores. The best bet is to install paystack but it can only accepts Naira, whereas your target audience are majorly not Nigerians. The next thing to do is to set up a paypal business account then link your naira card to it. Activating paystack for international payment option means that it will only show your buyers Naira equivalent on checkout list.
Stripe has issues with verification and it is a little expensive to get all the necessary documents for verification. In check.com you need:
- A proof of identification (ID) to open payoneer
- A physical address by uploading your utility bill and the address must be the one used on your shopify store.
- You must write a shipping policy, return policy etc on your shopify homepage.
HOW TO REGISTER IN SHOPIFY
A website is needed for shop to look good and authentic. Pay professionals to set up a good and attractive store for you. Some will collect more than $100 to help build one for you. As a Nigerian you can use blue snap dot-com . Register with your Nigeria phone and address using bank details in your payoneer.
You can open a free account with shopify by becoming a shopify partner meaning you will not need to pay any money all through the year.
Login to their website and open a free shopify account. This means you will not use your domain name, your store name will become a sub domain. In the process of time you can buy your domain and link it up.
- Spend money on targeted traffic and ads which can easily be gotten from Facebook.
- Strong network with supplier is a major key
- Always follow your shipping in other to correct any error with either supplier or customer. It will help build reputation.
- Give out shipping details to your customers example number of days to receive package, costs etc details can vary from the supplier or shipping company.
- Identify your customers and build your website to their taste.
- Be very considerate in your pricing
Find out a fast moving niche you can serve
Identify products that solve people’s problem
- Create an ecommerce that drives traffic
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