What is drop shipping business and how does it work?
Dropshipping is a new form of online e-commerce where people can sell goods to your customers from anywhere, to anywhere. How possible you may ask, drop shipping makes that possible by giving you products to promote and sell even if you don’t have them in your hand. With drop shipping, you save on setting-up your ecommerce store or social media accounts because you do not have concerns and responsibility about the shipping or stocking of products, when you receive a customer’s order on a certain product you advertised on your platform, you contact the wholesaler or online store, they arrange the product and make delivery on your behalf to the customer irrespective of the location. Therefore, as a drop shipper, you are able to advertise and sell a wide variety of products. Drop shipping business in Nigeria also offers a huge potential that makes it an extremely attractive online business to start up and make money.
How to make profit from drop shipping
A business is always out to make a profit, also drop shippers who are into drop shipping business in Nigeria generally make their profit on the difference between the manufacturers price and final selling price of the product. drop shipping from online stores such as Aliexpress, Alibaba, 1688.com ensures you gain the best opportunity to make more profit with better priced products. It is vital that a drop shipper does not reveal the origin of their product source, because then the customer could contact the manufacturer directly.
Therefore, it is in your interest that you find a manufacturer who you can trust. There are various advantages to be gained with the drop shipping business in Nigeria, such low capital to start and you make profit on products which you order on behalf of your customers. For instance, you place an order for your customer who pays you for sneaker which has an original price of N 1500 from the manufacturer, your profit on such product is included on the final price of the sneakers to which is N 2500, on successful delivery of the sneakers to the customer you have simply made a profit of N1000. If 10 customers order for the same sneakers at the final price of N 2500, that simply a profit of N10,000. Remember you do not need to have physical stock of the products you are promoting. To excel in the business, pick a profitable product niche, make use of social marketing, demonstrate excellent customer service, constant value addition via content marketing. Note that a number of factors can affect profit margin like competition, retail vs wholesale purchase, exchange rates etc.
A plus in drop shipping business is that you can set up your own ecommerce website like Jumia and Konga and promote their product links and description on your website. Your customers can also place their orders online via your drop shipping online store or your social media accounts, it is then your responsibility to place those orders with the manufacturer of the products, or with their recognized multi market place ecommerce store. It doesn’t require a huge capital to set up a successful drop shipping business in Nigeria, just the basic knowledge of how to use a computer, set up an ecommerce store or social media accounts, social media marketing and also email marketing to reach your targeted audience.
Here is a list of online e-commerce stores you can start your drop shipping business in Nigeria;
Most of this stores offer huge discount on their products which you can add to your profits or commission on such products.
How To Decide The Products You Will Sell
Deciding on the product you want to promote as a drop shipper can simply be achieved by carrying out market research to determine which products are in high demand and are selling fast, as you do not want to promote a product that is not in demand. Marketing research of products to sell provides you with direction and making your journey an easier and more profitable one in the business. In other words, it will give you an indication of whom and where your customers and how to target them. You can also gain an insight into new products that could be more profitable for you. For products that are already being marketed, this type of research can determine whether they are in fact meeting the needs of customers and/or their expectations and also how you can profit on such with your products.
How To Market And Promote Your Products
Every business must have a plan in line with marketing. For drop shipping business, creative, innovative marketing and promotional strategies are a huge influence in the success of the business. It is through this media that you expand, create customer awareness of your products and open doors to opportunities. There are many and different methods of getting your business in front of a potential buying audience. However, they vary in relation to customer’s awareness, market and their cost effectiveness. Making use of digital media means of marketing to reach out to a huge customer base is vital.
Social media platforms such as Facebook, Instagram and business listing platform are means also to market and promote products.
Also choosing the right online store or whole sellers for your drop shipping business is very important as it can influence the success of your business and satisfaction of your customers. Your priority ought to be selecting the biggest, established and most reliable online stores or wholesalers. If you have decided on the products you want to promote, you can seek recommendations from the manufacturer who supply the large e-commerce stores on which are more
reliable and efficient. With this, you will have assurance that the online store or wholesaler is authorized and supports the sale of the product effectively.
Also be on the lookout for the delivery time of the online store, service support and ease of making payments.
How to Increase customer base for your products
A satisfied customer will be a returning customer in any business. To efficiently grow your drop shipping business, you must expand your customer base and satisfaction and it will have a huge impact on profits. Always maintain contact with customers during the order and delivery of the product. When the delivery is completed, contact your customer to determine the level of satisfaction and service, initiate your customer to suggest your services to friends and family and if possible include a discount rate on future purchases.
ALSO READ : How to start a mini importation business