Understanding Dropshipping In Nigeria

Understanding Dropshipping In Nigeria

One of many benefits of ecommerce in Nigeria is the potential to provide job and income with little or no startup capital.

Understanding Dropshipping In Nigeria
Understanding Dropshipping In Nigeria

As you would see in the discussion on dropshipping in Nigeria, you can start a business with or without little cash if you have access to the internet.

Although our discussion on dropshipping in Nigeria will be limited to the basics, this notwithstanding would give you enough idea to pursue your dream in it if you so wish.

Without further delay, lets begin..

What Is Dropshipping?

In the traditional market, people who go around to prospect customers as though they are owners of the product being sold. When they find a customer, they take them to a shop and sell. After the sale, they get a cut. In this case, itā€™s not a sales commission; it is a profit made from the transaction!

There must have been an understanding with the owner of the product, allowing them to sell at a profit. The middleman adds his gain to the actual price of the product in the transaction. What he gets is the amount added to the actual price the seller sells for.

That should give you an idea of dropshipping!

However, in ecommerce, dropshipping refers to selling products belonging to third-party (wholesaler/manufacturer) without stocking such products. Dropshipping allows a dropshipping outlet to sell a product without having any physical contact with the product.

The Workability Of Dropshipping

Dropshipping in ecommerce is more convenient than in the traditional local market. Because it is easier for a merchant to set up an online store and find dropshipper to work with.

Therefore, dropshipping involves three parties: The dropshipping outlet, the merchant and the customer.

  1. Dropshipping outlet is the owner of the products being offered for sale;
  2. Merchant is the retailing outlet that prospect customers for the dropshipping outlet;
  3. Customers are people shopping for products online

The dropshipping arrangement goes thus:

  1. The dropshipping outlet indicates it would deliver to designated locations.
  2. The merchant creates a sales store to market the dropshipping outletā€™s products.
  3. Customers shopping online found a product on the merchant store and make orders.
  4. Merchant collects vital delivery information when customers make orders.
  5. Merchant orders products from dropshipping outlet; make the necessary payments and provide delivery details of the customer.
  6. The dropshipping outlet processes the sales and delivers the product to the customer.
  7. The merchant makes a profit and prospects more customers.

Is Every Wholesaler In The Dropshipping Business?

Not at all! It is not every wholesaler that has dropshipping as a business model, and this is the tricky part for the merchant to shop for the best dropshipping outlet.

As a merchant, here are seven success factors to succeed in dropshipping in Nigeria:

  1. Establishing a great relationship with the right dropshipping outlet;
  2. Carefully choose your product
  3. Have a clear and concise product description
  4. Develop and add value to your prospective customers
  5. Choose a market niche to serve
  6. Create an impeccable marketing and SEO strategy
  7. Concise and offer outstanding services

Start Dropshipping In Nigeria

As with other forms of ecommerce activities in Nigeria, dropshipping is emerging. There are existing dropshipping activities in the country, and anyone interested may join.

If you are interested in starting dropshipping in Nigeria, here are the steps to follow:

  1. Find a Niche to serve
  2. Understand how to make a profit
  3. Find and choose dropshipping outlets
  4. Create an online selling platform
  5. Learn dropshipping private label
  6. Learn and Master digital marketing platforms
  7. Plan your finances
  8. Know the Downsides to drop shipping
  9. Learn various tools to grow your dropshipping business

Merits Of Dropshipping In Nigeria

  • Easy to start
  • Low startup capital
  • Low maintenance cost
  • Employment generation
  • Extra stream of income
  • Lots of marketing resources to leverage

Demerits Of Dropshipping In Nigeria

  • Low-profit margin
  • Shipping costs
  • Lack of buyer education about dropshipping
  • Lack of traceable address for product delivery
  • Undeveloped logistics systems


Dropshipping is a lucrative ecommerce business in Nigeria. But I need you to know that there is nothing like a free meal. I say this because you must be ready to spend a few bucks to get off the ground.

Before your e-business starts paying you, it will need seed capital; you need to pay for internet access, building a website or joining an ecommerce site. Nigeria has the potential to make you succeed in dropshipping.

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However, you should be ready to cope with the perennial inefficient infrastructure (logistics, internet access, payment system, etc.), and the fledgling market.