How to start a Dropshipping business in Nigeria

The idea of dropshipping in Nigeria is a great idea, only if you know how to run it succesfully. But the reason I captioned this title as “How to start a dropshipping business in Nigeria” is because it’s a whole lot different scenario when it comes to Nigeria.

Starting a drop shipping business in Nigeria means you have to think of the payment gateway for your business. Also you need to know suppliers that are ready to ship your products to Nigeria.

What products should you dropship? And if you’re thinking of dropshipping internationally, then you should be aware whether or not you have to pay tax or register your company. Lastly, you need to understand if are you going to pay a custom tax on all the product you’re drop shipping in Nigeria especially when you are importing them.

These and more, are the reason I made the title how to dropship in Nigeria, because of the economy uniqueness and some rules and regulations guiding e-commerce business in the country. So you probably need to sit tight and enjoy the ride as I do justice to this in the best way I can. If you are not subscribed to this blog please do to get more of this and join our community on Facebook.

Ok!  So what’s drop shipping all about and how does it work?

In the simplest form dropshipping is selling products without buying or having them.

This is how it works; after you’ve create an online store and added your product to it.  When I mean product I mean pictures and descriptions of the product, because you don’t have the product in physical. And after this, once you made a sale all you have to do is contact your third-party supplier (owner of the product) by sending your customer address and paying the supplier from the sales you made. The supplier in turn, make the shipment to your customer. Although based on agreement, the supplier might add your brand name to the product. You can check my previous article on dropshipping for better understanding.

How to start a dropshipping business in Nigeria with 5 easy steps

Before we start let me quickly answer some of the frequent questions commonly asked about drop shipping in Nigeria.

  • Do you need to pay tax dropshipping with AliExpress in Nigeria? The answer is NO! Paying of Tax are for resident inside the US.
  • Will you pay tax duty on products shipped into Nigeria?  Still NO! Whatever amount you are to pay on a product will be clearly written on your supplier website.
  • Do you need to register your company as an e-commerce business? The answer is NO and YES! When starting you don’t necessarily need to register just to save the cost. But when your business starts booming and growing momentum then you should consider registering your business.

That’s that about that. So let’s look at the steps on how to start a successful dropshipping business in Nigeria.

How to start a dropshipping business in Nigeria

  1. Step 1: Find a supplier.
  2. Step 2: Select a product to dropship ( bestselling).
  3. Step 3: Choose a selling platform.
  4. Step 4: Market your business.
  5. Step 5: Start making money.

Step 1: Find a supplier

Before starting a dropshipping business, your first priority should be your supplier. Suppliers are the backbone of all dropshipping business. Reason being that the quality and reliability of your supplier can determine the success of your business. Trust me without a reliable suppliers there won’t be a product for you to dropship. So you might have to take them seriously.

For the sake of this post, and probably for the fact that you want to dropship in Nigeria or elsewhere your best option of choosing a supplier should still be AliExpress.

Their products are relatively cheap giving you a profit scalability on your business. The good thing is 80% of drop shipper are using AliExpress so this might be your best choice in Nigeria.

If you want to dropship a rare product that happens not to be on AliExpress. Although hardly will you see one. The best thing here is to use the Google search engine to locate your supplier by using your selected keywords.

 Step 2: Select a product to dropship

The second step after choosing your supplier is to choose the product you want to dropship. Many people are often tempted to start selling anything they can think of, but drop shipping doesn’t work that way. For you to be successful, you need to choose one or two related products or a niche you will be selling from. But make it limited. It’s better to be a big fish in small water.

Another thing you should have in mind while choosing your product is that, you can’t just start selling any product you see. It has to be on the market trend. That is, demand for it must be relatively high or at least very stable and the competition for it should be minimal. Unless you want to injure yourself!😯

Thus, you can simply use Google trends to know if the market for the product is rising or decreasing. You can know products with high competitive market by searching other popular stores. Also best-selling products on popular stores may give you an edge while start your business. See the image to see an example of Google trend.

How to start a dropshipping business in Nigeria

 

Step 3: Choose a selling platform

Now here is the most important part, because this is going to determine how your store looks. Whether it’s a professional site or not and you know professionalism breeds reputation.

This is the platform that’s going to host your store. ( To be put simpler, the house your online store will be occupying ) Here am going to write on just two platforms which are WordPress hosted platform and Shopify.

WordPress – Here you need to get a domain name. That is, the name of your website, and get a hosting plan for it. Your host company will be responsible for hosting your store and keeping of your store data files.

After your domain name and your hosting plan are ready you can then install e-commerce software ( WooCommece )  on your website through WordPress. This can be done through one-click installation and after that, you can start tweaking the website to your taste. Here you will literally create your website yourself but no coding is involved and it’s nothing you can’t do.

If you want to create a WordPress store you can check out NameCheap for your Domain names and check HostGator for your hosting plan. They’re both a wonderful platform.

dropshipping with aliexpress shipping time

For WordPress site AliDropship  is a WordPress plugin that can perfectly help your dropshipping business, its works just like Oberlo

Shopify – Shopify is a website that allows you to register with them if you want to sell your product online. They offer ranges of service from hosting, Domain name, Design, CMC, Payment Gateways, e-commerce plugins and everything else you need to start a successful online store.

Related: Shopify Reviews 2018 – How Shopify works in Nigeria (Pros & Cons) 

Shopify is one best platform for dropshipping if you are a newbie or even a professional. It allows you to focus on your business by branding and marketing your products while they manage your store for you. You can create your store and ready to start selling immediately within 5minute so far your marketing strategy is in place.

The good thing is they offer a 14days trial. You can set-up your store in a day and start marketing immediately for the first week. With this it’s possible to make profits within the 14days and pay your hosting plan even after the trial expires.

I will recommend Shopify just to avoid the stress or even the cost of hiring a freelancer to create a WordPress site for you. With Shopify, the basic plan is just $29 per month. But this is nothing when the money starts rolling in.

Related: how to make money with Shopify in Nigeria

Step 4: Market your business

Without marketing, nobody is going to visit your store. You can’t just sit down and expect them to come and buy from your store. You have to take it to them. The best place to market your product is Facebook. You can do this by creating a Facebook fan page after your domain name and create a Facebook business account to run your Facebook advert.

When running your Facebook ad, choose one of your cheapest products to drive traffic to store. Once they make their first purchase they will naturally come back.

Another means is by collecting their emails upon sign-ups and send marketing emails on new products or discount offers on existing products. I talked more of this in this guide you can check it out.

Related: 5 ways to effectively market your business online

Step 5: Start making money

To make the work easier there is a Shopify plugin “Oberlo”, it’s a plugin or App specifically design for dropshipping.

What it does is that it helps you to import product descriptions, photos, etc from your supplier website to your store.  This can be with just a click and when a product is sold in your store, it automatically sends the customer details to your supplier. The supplier then ships the product to your customer address.

Dropshipping can prove to be a good residual stream of income when done the right way and following the proper channel.

Please if you have any suggestion or contribution toward this, or you practically need my help you can let me know in the comment box.

Take the bold step now with Shopify within the 14days trial and grow your business.

Please if you find this helpful, you can help by sharing it with your friends and family and also subscribe to our blog or join our community on Facebook and let’s make the money💰 together😉.

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72 comments

  1. great article. This is one business u want to venture into. The question is how do i get a good and reliable supplier on aliepress?

    1. Once you’ve decided on the product you want to dropship go to Aliexpress Create an account with them and browse the products. When you’ve seen the product, check the product reviews, 5star or 4star reviews is usually good and check the response rate of the supplier too. If it looks good click the product and contact the supplier that you want to dropship the product, tell them your location if they ship to that location and also negotiate price too. They may not reply immediately because of time Difference and if you don’t flow choose another supplier.
      Thanks

  2. One more thing. I just created a free shopify store but the issue now is that it’s store’s checkout is password protected,they say i need to pick a plan to disable the password. Meaning my customers can’t check out. Please help,how do i go about this?

    1. Thanks for reaching out Emitheo, the password is to protect your store until it’s properly ready for selling so people won’t be able to access it in that state. You need to add product to your store, integrate your payment gateway, your domain name if you have one and test the check out process yourself before going live.
      If you are ready login to your Shopify dashboard scrow down and click >> “Online Store” after that scrow down and click >> “Preference” after this scrow down to “Password Page” choose a plan, Mind you they won’t charge you until your 14days trial expired. So choose a plan and then disable the password and your store is live. But I will suggest you make sure your store is properly set-up and ready before you raise the password. Check this out for better understanding …https://help.shopify.com/manual/intro-to-shopify/initial-setup/setup-prepare-for-launch#step-by-step-place-a-test-order

  3. H
    i thanks for the breakdown, please i want to know which payment gateway that can process USD is available for Nigerians using shopify or wordpress

    1. Hi Becky, If you want to do international dropshiping in which you will be paid in dollars, I will advice you use a “PayPal business Account”,or “Shopify Payment” for Shopify platform and for WordPress you can use PayPal or stripe. There are more for WordPress.

    1. Hi lexybar
      You can do that by saving the products picture from AliExpress then re-edit it and also copy the product description also re-edit before you upload it in your Shopify. The easiest way to do that is by using the Oberlo plugin. Its helps you do that almost automatically and it has a 30 days free trial.

    1. Hello Bash
      They’ve had a lot of Issues with declining MasterCards, so i believe that might be the reason. However, i wont suggest you add your billings if you are not ready to launch your business.

  4. Hello Mr David,

    What is the best way to receive my payments and buy if I decide to dropship to Nigeria and to US?

    Which do you use that works best for you?

    1. About the Payment gateway, My PayPal account is run by my cousin in US because PayPal does not receive payment in Nigeria. If you want to sell within Nigeria payment gateway is not an issue. You can use CashEnvoy,PayU, PayStack etc.

  5. good day mr David,
    Please if i want to do dropshipping on our Nigerian local food to people outside the country, how do i go about that? Thank you

    1. Hello Joy
      That’s sounds like a good idea exporting our local food abroad. it’s a two way thing. If you have a supplier of the local food already in Nigeria then you can drop ship from such person so far he/she agree to ship the food outside the country.

      The second is, the product and your company has to be registered with CAC and get a Nafdac Reg for the product since you will be dealing with edible products.

      If you have a ready supplier or you can easily get one, then its a doable business.
      Feel free to contact me if you need my further help.

  6. Great stuff you’re doing here. I must commend you.

    This post really simplified the process. Though getting a list of payment gateways or a list of successful product for Nigerians probably in another post, would further expatiate on the topic.

    All the same, many thanks brother.

  7. I noticed you did not really expatiate on other ecommerce platforms like Jumia and Konga. Is the process the same on these platforms or totally different?

    1. Any products on Jumia or Konga that takes over 20 days to be delivered is probably dropshipped. Because if it’s their product, delivery within Nigeria shouldn’t take that long. The beauty of dropshipping is that your customer will never knew it was dropshipped in the first place.

    1. Products from China takes 21 to 45days to reach Nigeria. But most times 21days. You can check Jumia internation products and learn more about their shipping days to have a clue of it.

  8. Hi David,
    I really commend your article here. You are really doing a great work. Please how do I connect my PayPal business account to my GTB dollar account to receiving money through alidropship. I have this plugin for couple of months but could not even use it for just a second because I am getting stalked at payments gateway point.
    Please assist.
    Regards,
    David

    1. Hi Sake,
      Thanks for the kind words, about the Gtbank domiciliary account, i currently don’t use it but have spoken with one of their agents on it before, and she said it possible to receive payment from PayPal with the dollar account but i don’t know how sure it is. She said one as to link the dollar card with the PayPal account. Am sorry i can’t be much of help, my own PayPal account is run by my cousin in the U.S

  9. Hello good job.I approach Jumia for Dropship from overseas to Nigeria they refused.I have a company that focus on designer products.but will like to know any Nigeria ecommerce website that can accept Dropshiping I have over 10000 products to Dropship. Designer products authentic items.I want to create my own website for that but d money they are calling is much

  10. Great work bro, very informative. I have the same issues as David and i’m thinking of letting my coz run my PayPal account from the US so that i can move on. I also have got the plugin for a month now.
    I must commend your efforts here, well done sir.

  11. Great work here. My question is how do I tell people they will get their goods in 21 to 30 days. Im scared of nigerian mentality on ds issue.How have you been able to do it for nigerian market since most of ds goods are already trendy in nigeria.

    1. Thats a Good Question, but take a look at Jumia international products and study their delivery span and people’s reviews about the product bought. If they can buy there, they can buy from you too.

  12. Good research work David:

    Please i will like to know how do you get your percentage of the money paid when you drop ship through aliexpress… because the supplier will get his/her own money paid before shipping it to nigeria.

    Please explain as that area is not clear to me.

    Thanks for your swift response..

    1. Hi
      Its a simple math.. Assuming you dropshipped a product for $20 and the actual price is $10 once you’ve collected your money from your customer… $10 will be the amount paid to your supplier while you keep the remaining profits for yourself.

  13. Hi, Admin,

    Thanks greatly for this. I am so glad and grateful.

    The guide is well detailed. You have a good command of English too.

    I will go on and try this out. If I have any challenge, I’ll get back to You.

    Thanks once again. God bless You.

  14. Wow! I find your site so educative. This will be my one stop site hence forth. Please I want to find out which payment gateway I can use with Woocommerce?

  15. Hello Mr David, you are really doing a great work here. I am really impressed with your work it is informative and current. God bless you.
    Pls i have a question bothering me. Here it goes, now assuming i have an online store with shopyfy for example and my payment gateway is paystack and my customers pay me in Naira how will i pay my supplier in Dollars?
    Secondly, can the process of receiving payment from my customers and paying my suppliers be automated to manage multiple orders.
    Thanks.

    1. Hello Mr. Naasir
      Thanks for your Kind words… about paying your supplier, you can either do that through Paypal or via your MasterCard. The dollar equivalent will be deducted automatically.
      About your second question… If you are using Shopify Platform you can do that via Oberlo App and if its WordPress, you can also use Alidropship Plugin

  16. Hi David,
    Great job you are doing. Pleasevfinding a supplier like Aliexpress means registering as an affiliate I suppose before downloading and importing products into my website.

  17. David thanks for this informative trend… My question is.. The money i recieve from the customer is it going directly to my Nigeria Bank account?…

    1. It depends on the payment Gateway you are Using… If you are using MasterCard, Visa etc. to receive your money from customers the money goes first into your payment gateway account. Let’s say Paystack. It’s from there you can now withdraw into your bank account.
      But in other to do all this endeavour you have a corporate bank account.

  18. Hi. David

    Please can you put me through the shopify. Do you have a book guide on it. I will glady appreciate it.

  19. Hi David…This write up is straight forward and very educative

    I have a question, if i want to target an international market. Can i still access my website and account from Nigeria here normally or must I use a VPN. Or what are the things to register or do to dropship internationally

    1. You don’t need to change your VPN at-all. All you need is a Payment Gateway that can receive international currency, which of course is PayPal.

      For those interested in a Business PayPal account that can receive and send money here in Nigeria without the use of VPN should contact me.

      1. Please I am interested in the Business PayPal account and I would also like to chat with you privately, I have a lot of questions to ask

  20. good day can I get your number want to start what do I need.i want you to help me gradually as it is been set up

    1. Seriously, It,s straightforward! Set up your website and install the necessary tools, although depending on the platform you want to use.

      And also, please reserve some change for adverts!

  21. Pls can i use my paypal to buy on instant gold nigeria and get the dollar equivalent in naira, also pls send me your contact information

  22. Hi, I am in Nigeria, and I warm the to start dropshipping on eBay to clients in the US and Canada. How can I do that effectively, without them knowing my exact location

    1. Hello Petrollena
      Sorry, not sure exactly how you can do that as I don’t currently sell on eBay! But why trying to hide your location?
      You can reach me through the contact page though.

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