Simple Guide for Nigerians to Make Money from Dropshipping Business

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Nigerian dropshipping is a lucrative, profitable start-up business. Many people are afraid to start an online business because of start-up costs and trouble running a small business in a country like Nigeria. Starting a dropshipping business is a big first step in business.

You can sell products to customers, set prices for your own product, and market your own brand. You don’t even have to pay for your inventory until it is sold to a real customer. In this article, we’ll teach you how to start your own dropshipping company. The focus will be on the difference between a business dropshipping model and a traditional e-commerce pattern, the benefits and disadvantages of starting a dropshipping business and a step-by-step start-up guide.

What is Dropshipping in Nigeria?

Dropshipping is an execution method for retailers in which a shop does not store the goods they sell. Instead, if a store sells a product, the item is purchased from a third party and sent directly to the customer.

Dropshipping is a kind of business model that allows a business to operate without inventory retention, own a storage facility to store its product, or even send its products to its customers.

The classic retail model Vs Dropshipping

The biggest difference from the standard retail model is whether the retailer does not have an inventory or has no stock. Rather, the merchant usually buys inventories from a third party to fulfill customer orders from a wholesaler or manufacturer.

The advantage of drop-shipping is the need for smaller cash investments. With the standard retail or e-commerce model, you must invest more cash in front of you. Your reward, however, is higher profit margins.

How to start your business with dropshipping?

Step 1: Find a niche/category

If you pick a niche that you fully understand, it will give you a few more benefits than your competitors. Without knowledge of the niche to be chosen, you will not be able to catch anything fishery about product quality, process, price or anything related.

The niche you choose has to be laser-oriented and something you really want. It is difficult to market a non-focused product range. If you don’t like the niche you select, you’ll be more likely to be discouraged as a drop-off shipping company needs a lot of work.

Step 2: Search for a supplier

Business with the wrong provider may destroy your business, so this step is important not to rush. Due diligence is done properly. Most shipping suppliers that are good for Nigerian companies are outside the country (mainly China).

Alibaba is one of the largest online resources in identifying and communicating with potential producers and suppliers. Make sure your company grows exponentially and asks a lot of questions and learns what your production capacity means. You want to be sure they can scale with you.

Step 3: Select your platform.

In this case, see your online platform. You can either set up your own electronic commerce store or sell your products on popular e-commerce platforms in Nigeria (e.g. Jumia and Konga) when you start a Dropshipping business.

You should start with the second alternative as they handle so many e-commerce issues that you may not have resources to handle. Then you can consider starting your own e-commerce website at the level of your business.

Step 4: Promote your company

There is a popular quote in the company that says “Nothing takes place until something is sold.” A hijacker’s primary purpose is to sell something, and this only needs to be achieved through constant research of innovative and cheaper ways to promote your business.

It’s great to have an excellent product and website, but without clients who want to buy, you don’t have a business. Do not ignore the importance of using digital marketing to develop your customer base. This can be accomplished by targeted advertising on Facebook and Instagram, SEO to optimize search engines with certain keywords, including Google, and by using many more growth hacks.

Step 5: Make financial arrangements

One common mistake entrepreneurs do not take financial governance seriously when starting a business. Every business that makes money must always look for financial gaps that can ruin the business and prevent this.

From the very first day, financial activities such as SMB accounts, tax transfers, wage administration and invoicing should be taken seriously. You should also learn to keep as much of your business and personal finances as separate as possible.

Just like starting a new business, starting a business has some advantages and disadvantages.

Dropshipping company pros

Low investment: One of the biggest advantages is that you can start your own online shop without having to store hundreds or thousands of dollars.

Easy to start: In addition to finding the provider and setting up your online store, when you don’t handle the inventory, it is easier to start and run an e – commerce company.

Low overhead: It is not necessary to manage and store your costs and keep your expenses nice and low with low overhead. You can run your drumming company on a laptop from home!

4. Flexibility of location: No need to pay expensive rent unless you have an Internet connection, your retail shipping company can run anywhere.

5. Easy to scale: Most of the work will be done by suppliers using declining suppliers, so you can expand and scale with fewer works.

The disadvantages of dropshipping

  1. Low margins: Lower margins are the biggest disadvantage for a highly competitive dropshipping market. Because low overhead costs are so easy to get started, many merchants start their store at a super low price to try to quickly increase their revenue.
  2. Returns and shipments: If you use more than one vendor, as many drop shippers do, it can make your shipping costs difficult because they vary from vendor to vendor.
  3. Visibility gap: You also outsource your customer satisfaction when working with the supplier. Another person is building and sending a product that is an enormous part of the overall experience of the customer.


Drop shipping is a very popular business model for new businessmen, especially in Nigeria. Since the items you sell do not have to be stored or handled, new competitions come up very easily.

The above guide will allow you to know how to start your own dropshipping business from scratch, but to be extremely successful you need to constantly innovate in product variations, pricing, and marketing and delivery methods.


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