Do you want to make money in dropshipping business in Nigeria? Drop shipping business is one whereby an individual can sell products to his/her customers without actually stocking the items. In simplified terms, drop shipping is selling products without buying or having them in stock. Drop shipping is functional in any country with internet and e-commerce Business. A drop shopping business is one of the fastest, easiest, and most low-risk ways to get started with an online business.
With drop shipping, store owners can sell products to their customers without actually stocking the items themselves. Drop shipping isn’t something new. Zappos started dropshipping back in 1999. Amazon and Sears use this business model, too.
You can use drop shipping to launch a business without having to take on inventory or you can use it to expand your business testing out the waters in various markets before you invest in inventory.
Drop shipping has been made easy such that you don’t have to buy from China but can work with wholesalers right here in Nigeria (also known as local drop shipping) and make money either as a student, civil servant, working class or work-at-home mums. The advantage here is that you have a close contact with your drop shipper and still earn almost the same if you were to source internationally considering the cost of researching products on the internet. If you are an entrepreneur with limited funds, consider going into drop shipping business to enable you to raise the money needed to start up Big.
All you need is to identify companies that offer drop shipping business, a smartphone, laptop, Internet connection, Social media handle (twitter, facebook, Instagram, Whatsapp, etc.)
With drop shipping, you can sell just about any product in any niche. And the best part is you don’t have to deal with the hassles of traditional businesses, such as:
Storing your products which involves renting warehouse space
Shipping the products to the delivery courier
Most importantly, you don’t have to put down your money upfront to buy products wholesale to resell that you aren’t sure will sell.
One of the key elements in drop shipping is having products to sell. In fact, without products… you don’t have a business at all.
Now, the next question is: How do I get products… where do I find them… how do I know if they’ll sell… how do I get them to customers?
Below are the answers to the above questions:
With drop shipping, you work with a wholesaler or distributor that sells the products and also supports drop shipping service. Not all manufacturers and wholesalers offer drop shipping, but many do.
Basically, you do all of the marketing, advertising, and promotion to get the customers and make the sale. You handle all the marketing for your business either by word of mouth, social media and email marketing, blogging (if you are a blogger). You contact your prospects and customers and tell them all about the products and how it will make their lives better.
When you close a sales deal and it’s time to send out the product and fulfill it, the drop shipper takes over. They have the inventory in their warehouse. You send them the orders that come in, pay the agreed price for each order (if it is not Pay on Delivery), send the customer’s details which include Name, Billing Address, Phone Numbers, etc. This can be done by email, or text messages or other means as given by the drop shipper. The drop shipper then collates the order together and ships it to your customer. At this point, the transaction is completed.
However, if the transaction is POD(Pay on Delivery), which is common in the Nigerian setting, then the drop shipper collects the money on delivery, takes the cost of the product and cost of delivery while the balance (which is your profit margin) is remitted to you.
Of course, most drop shippers in Nigeria; if not all charges a fee for this service known as Access Fee which is payable monthly, quarterly, annually based on the drop shipper and shipping cost but you can still stay profitable as a drop shipping business despite the thinner margins.
If you want to increase your profits, you raise your prices at least as much as your market will bear or sell at varying prices based on the class of customers. You can also sell more volume and may also negotiate prices with your drop shipper
Creating a Niche and Finding a Fast Selling Product
As with any online business, you want to be in a market that is “hot” and ‘fast selling’ where there is large number of people ready to buy the products. In the best-case scenario, the niche you specialize in should also match one of your personal interests.
If you have a passion for a certain market or type of product, that enthusiasm will make your marketing effort and also your business to be stronger and effective. Not only that, but you’ll actually enjoy what you’re doing, making your work seem more like play.
Whatever items are on the bestseller lists could be a great fit for a drop shipping business. You can also do your personal research; keep an eye on trends you see on Facebook and other social networks, in the news and what your friends and family are talking about.
Also, during the holiday season such as Christmas, Easter, Back-to-School and other special times of the year, related products can do really well.
A big mistake a lot of people make when starting any type of business is that if they see other people doing it they think it’s too competitive and they can’t make any money in it. However, the truth is that if you see a lot of competition that’s the sure sign of a big, healthy, profitable market.
Choosing the Right Drop Shipper
Before making your choice of a drop shipper, you should analyze the order process yourself from a customer’s point of view; if possible, purchase a product, see how easy it is to order the product, how long it takes to ship and how the drop shipper resolves issues. Also, check the quality of the product as you want to make sure that the product is something you’ll be proud to offer your customers.
If you are into a niche and have used other products that are similar, you can compare the product yourself. Use it. Study it. Does it do what is promised? Is it made of quality material or ingredients?
If you’re not into the niche, have a friend or family member try the product and do your research. Knowing the product will also help you sell it. Your marketing will be that much more authentic and effective.
Key Questions You Should Ask a Potential Drop Shipping Partner
The fact that drop shipping business is a great way to start an online venture without investing much of your own money and offers so many advantages doesn’t mean you should just hand off those important elements of your business to just anyone.
Working with a bad drop shipper could damage your reputation amongst friends, colleagues, associates and even your family members and also affect the number of prospects.
You have to be smart, inquisitive, observant and well informed during the process of finding and negotiating with a potential drop shipper.
Here are some key questions to ask to help you determine if they are the right fit for your business.
What’s the wholesale price they can offer you on their products?You’ll need to make sure the wholesale price they offer is low enough that you’ll be able to generate a good profit based on what you’ll be able to sell their products for.
Once a customer has placed an order, how long will it take to be processed and shipped out of the warehouse?
Which couriers do they use?
Do they have a tracking system so that you and/or your customers can see the status of each order easily?
How do they deal with issues like lost shipments keeping in mind that as the seller you are ultimately responsible for customer service? Will lost shipments cost you money?
Do the products they offer have warranties/guarantees? What’s the return policy like? Most reputable companies will offer some kind of guarantee or warranty on their products and will deal with returns for you. This way, if a customer contacts you with a return, you can simply tell them the manufacturer will be happy to speak with them directly. This is because if a customer feels that they’ve been taken advantage of, you can’t point to the drop shipper and blame them since you are the one that marketed and sold the product to them.
How will the payment process be like? If it is Pay on Delivery, the drop shipper would be the one to collect the money which includes the Cost of product, shipping cost, and your profit margin. You would have to agree on the method for profit remittance either by cash, transfer or cheques as the case may be. However, if it’s prepaid, you will have to pay before placing the order while the drop shipper processes and delivers the products
A drop shipping online business is a quick, easy, and low-risk way to start selling online. You won’t have to put up a bunch of money upfront on inventory that might not sell and your drop shipping partner handles delivery.
Many sellers on Jumia and Konga use drop shipping to fulfill their orders. They have people they partner with who have physical stores in the market.
When the seller gets his orders he goes to the trader and picks up the goods according to their agreement. Then he ships it off to the buyer. As it is mostly paid on delivery that buyers prefer he’ll wait for the goods to get to the buyer before he expects to see his money.
Pick the right niche market and product, identify the right drop shipper and you could have a profitable venture on your hands. You could even expand into other niches and sell other products, too.
There are many people making healthy six and seven figures strictly from a drop shipping business. The possibilities really are endless with a drop shipping business.
Zuma Marketing Limited is a contemporary company that deals in audio-visual products and integration, modern teaching aids and educational resources. Since 2012, ZML has provided thousands of clients with reliable and cost-efficient technology solutions for their collaboration, presentation, and Educational needs.
We are committed to client’s satisfaction and our mission centers on waste elimination, by offering quality and reliable audio-visual products, modern teaching aids and IT solutions.
Looking for a trusted company that deals in Audio Visual products and Modern Teaching aids in Nigeria, think ZML.
We offer an easy payment plan for schools and Institutions.
We offer drop shipping services to smarties who are willing to sell our products and our wholesale prices are competitive.
All you need to do is:
To register with us with a Quarterly Access Fee of N2,500(Two Thousand, Five Hundred Naira Only)
Attend our free training so as to be well informed and educated on how the drop shipping business works. You would have to come with your laptop or smartphone
Please Note: Prices shown on our e-commerce sites are retail prices, our wholesale prices are only given after registering as a drop shipper.
Interested in being a drop shipper?
You can send a mail to email@example.com, firstname.lastname@example.org
Or call/Whatsapp admin on 08025910090
This article was first published by smesmedia