HOW TO START A DROP SHIPPING BUSINESS IN NIGERIA
The drop shipping business is actually one of the newest business options as it is still in its early stages and with quite just a few number of people practicing the business. It’s a simple form of business that will definitely get entrepreneurs to start the business especially the ones that don’t have too much capital. The drop shipping business, like an online business, not only eliminates the option of getting a place to start the business but also reduces the entire cost used in starting a business. It’s also a really comfortable business that can be operated at the comfort of your home without too much stress. It’s lucrative and is definitely one business that entrepreneurs can try out.
According to Wikipedia, Drop shipping is a streamlined form of retail business wherein the seller accepts customer orders but does not keep goods sold in stock. Instead, in a form of supply chain management, it transfers the orders and their shipment details to either the manufacturer, a wholesaler, another retailer, or a fulfillment house, which then ships the goods directly to the customer. As such, the retailer is responsible for marketing and selling a product, but has little or no control over product quality, storage, inventory management, or shipping. It removes the cost of getting a shop as you’re not in direct sales of the product but instead being something more like a middle man even though it’s kind of different from that.
The simple way in which the business works ensures that the business can still be operated without having a location or even the products to be sold. First up, you pick up a product you want to sell from your supplier who might also not be from the country. Then, you advertise to customers who wants to get that product. They make an order which is then transferred to your supplier by you. You receive payment from the customer and you pay the supplier for the product at a cheaper price and then the supplier gets the products to the customer. As the business is, you don’t even get in touch with the products at all and you don’t have any business with the product except making sure it gets to the customer who has ordered for them.
One interesting thing about the business is that it can be so easy to start that you won’t even need any capital at all. If you understand the business from the above explanation, you’re not the direct seller and you’re also not the direct buyer but it’s your business and you’re trying to work to satisfy your customers and also get them what they want. Since there’s no need for a location or shop even at first, it means it’s a really low cost business and even if you want to use money for anything, it’s most likely to help your advertising efforts like, registering the business or any other thing that might come up. As it is something you need only little or no capital for, it makes it a business that can be started by entrepreneurs or individuals looking to start a business but without enough capital.
Another thing is the convinence and comfortability of the business. The business can be fully operated online from advertising, taking orders, ordering for the product, receiving payment and almost everything else regarding the business. Just like some of the available online businesses, you don’t need to go anywhere at all from getting customers to getting your money. All you need to do is make sure your supplier understands the orders and will also put the products in a good condition to ensure that your customers like the product and will also be looking to patronize you later on. It’s fairly easy to start and doesn’t require too much things at all in starting, not to also forget that it is highly profitable if you’re doing the right thing.
Starting the business is not difficult like I’ve mention severally. It’s quite simple and can be operated like any other business. It doesn’t require any kind of special skills though a training might be helpful. No educational qualifications or prior experience is needed as well in running the business. The capital is also quite low or nothing at all depending on how you decide to operate the business.
In the next sub heads, I’ll be discussing the steps involved in starting up a drop shipping business in Nigeria and some of the things that might prove useful during the course of running the business and also to ensure that you’re rightly operating the business and you’ll also be successful at the business you’re starting.
No matter what you’ve heard someone saying about a business and how well success is assured or how lucrative it would turn out, always try to do your own research. The research will not cost anything except your time and that time will prove to be well spent when the business starts and the successes starts coming in. It is important to do a thorough investigation about the business since you’re going to be investing your money into it and you’ve never been involved in the business. Some hours of research won’t hurt.
The research is always meant to give you an idea of what to expect and the challenges ahead to be faced. It teaches future entrepreneur how the business works and what success means. It shows the risks involved and the ways to tackle them. It also gives ideas on how to sustain the business and work towards more success. Imagine missing out on any of the mentioned points, it’s more like being less equipped about something especially something you plan to spend money on.
There are experts in the business, of course, so also look to advise from these individuals as they are most likely the best bet for reliable information on the business. Take note of even the smallest things during the research period and pay close attention to how to stay and survive in the business. The research is as important as anything in the business.
2. WRITE A BUSINESS PLAN
A business plan needs no introduction. It is equally as important as some of the other processes or things involved in the business. After a comprehensive and thorough research has been conducted, entrepreneurs must now put all their ideas into paper after, of course, deciding to start the business. The business plan will cover things like the way you plan to operate, the cost of several things, how you plan to market your business, future projections and also contingency plans.
The business plan serves a number of purposes. In cases where individuals might need to get investors or even get a loan, it will prove useful as it will contain all that needs to be known concerning the business. It is also going to serve as a point of reference for the proposed business.
3. SELECTING A NICHE
This simply means deciding on the kind of products you’ll be selling. There are different products available to be selected from and it is very advisable to get one that you’re comfortable with. You should select something with a high demand and that is also quite affordable so that customers will be able to get it. Don’t pick something because someone is running a similar business and is successful at it. You should pick something that works for you and you’ll have no problem advertising and also dealing with.
4. GETTING THE PRODUCTS
There are a number of websites online that can be used for the business. Things are shipped into the country from different places but one place with quite a lot of products and also at affordable prices is China. You can visit Alibaba.com which is one of the biggest online sites to get your products.
5. MARKETING AND SALE
As it is quite similar to an online business, you’ll definitely need to create a social media account for your business. It is the platform where your advertising will take place and you’ll also be attending to customers needs. You can also use popular e-commerce websites like jumia and konga to go about your business.