5 Top Benefits of Dropshipping

Advantages of dropshipping

What is Dropshipping?

Based on Wikipedia’s definition, dropshipping is a supply chain management method of business in which the dropshipper doesn’t keep goods in stock but instead transfers the customer orders and shipment details to either the supplier, who then ships the goods directly to the customer. As in retail type of business, the majority of sellers make their profit on the difference between the selling price and the buying price, but some retailers earn in commission an agreed percentage of the sales, paid by the wholesaler to the retailer.

Benefits of Drop Shipping:

  1. The capital to startup is relatively low:

You don’t need big thousands of dollars to start a Drop Shipping business.
It’s very convenient to run this business because you won’t have to deal with an inventory. The most hardest part of the road of starting a Drop Shipping business is getting a reliable suppliers. Once that challenge is solved, doing the business requires little effort and a lot of commitment.

You are making a profit with a very low overhead:
This business could be as easy as running it in the comfort of your home.
In there’s no need for owning a warehouse or facility of storage or overhead cost that comes with owning a warehouse. Most times, you can start the business without employing a staff.

The location for doing the business is flexible.
In short, you do not have to be at your home to carry out your Dropshipping business activities. Only, what you need are the internet connection and your gadget eg a smartphone and laptop.

You can decide to divert profit for your other business. Drop Shipping is not the type of business that requires capital for expansion.

You will depend on business opportunities and suppliers for expansion.

Benefits of Dropshipping
Benefit of the dropshipping

2. The Risk is Low

A major benefit of the dropshipping business model is that you don’t need to pay for stocks upfront, your work is only to transfer the order back to the supplier when it is made.

You Don’t need money to switch in hot trending product or change customer buying patterns – there’s no inventory involved, any time you can decide to stop or continue the business or can switch to tends without fear of losing your hard-earned money due to unfulfilled inventory

There’s no cost linked with managing inventory


3. Lowered costs overhead


At any time you can decide to change the product in your store without losing money.
Product Supplier are overly friendlier on shipping costs to drop shippers than customers buying to go resell directly

4. Convenience

All hassle of packing of items to preparing them for shipment is taken care of by your supplier.

You can add new items to your store very quickly, and also you can test new markets and products conveniently

Tips On How To Start Dropshipping In Nigeria 2020

Tips for How To Start Dropshipping In Nigeria 2020

What are the tips on How to Start Dropshipping in Nigeria 2020? People have been searching on the internet to find out how to start their own online business in Nigeria. But, Dropshipping is one of the best businesses to start from in the New Era of Internet Business.

You may be bethinking that you most know how to market but I have discovered that I am far away from the truth. I started with a one product niche, I usually drop-ship items like toys, clothes, and pets. And I have to build my business from $0 to $10, 000 monthly.

I found it was simple to build a business from scratch if you have the total knowledge of the business.

Dropshipping Nigeria is a purely lucrative business that any Nigerians can go into with minimum capital, and with the right knowledge and good amount of hard work, The person will have a chance to make a lot of money from it.

In this article, I’m going to take you through on a complete guide on how to:

  1. Start dropshipping in Nigeria
  2. Types of products to dropship
  3. How to set up your online store
  4. How to expand and grow your dropshipping business.

People always asked to know what products to dropship and make a maximum profit from.

In this article, I did my best to answer all these questions and many other questions.

How To Start A BusinessDropshipping in Nigeria starts with having Ideal knowledge. For any online business, you have to know all the rules and regulations. You have to understand the shipping policies. Getting familiar with these details will help you begin your dropshipping with ease.

STEP BY STEP – TO Starting A SUCCESSFUL BUSINESS OF DROPSHIPPINGIN NIGERIA?

  1. Knowledge is Power
  2. Start with a single Niche
  3. Finding reliable dropshipping suppliers
  4. Understand how to maximize your profit
  5. Know what’s private label drop shipping is
  6. Understand how to use available marketing platforms
  7. And finally, you should know the advantages of drop shipping

1: Start with a Single Niche

Drop shipper grows when he/she stick in only in one Niche Market. It is therefore important going for a niche store is the first step towards becoming successful in Dropshipping. For you to be successful in drop shipping, you must be within a niche that you understand very well eg Pet Niche

Note: There are many requirements to consider before choosing a Niche, it mostly involves doing your due diligence, learning from past mistakes and putting your best foot forward.

2:Finding reliable dropshipping suppliers

A lot of dropshipping suppliers are based in China and the United States of America. But, you can also get suppliers from another part of the world, including here in Nigeria; it all depends on the market you are targeting and the best way you can be served and reached.

For cheap, reliable and affordability, China is the best choice because of the improved logistics and ease of doing business. It’s important however to do your research before sticking with a supplier, as your supplier could mean the difference between success or failure. Not all suppliers are dropshipping friendly, check for reviews and recommendations. You can find suppliers from Alibaba or Aliexpress

3:Understand how to maximize your profit

It is always a known practice to go after items that would give you the maximum possible profit per product. To calculate your profit as a drop shippers you should follow these steps:

The difference between the selling price (SP) and buying Price (BP) including all other costs (OC) Including as shipping cost, handling cost and Ads Cost – P = SP-(BP+OV)

4:Knowing what private label drop shipping is all about

In Drop Shipping, the common trend is to ask the manufacturer to customize the goods for you, simply by customizing it to your specifications and adding your label on the products.

Note: you can private label any goods, for instance: t-shirt, face cap, cups, water bottle, multivitamins, fitness products, body products, and so on.

To private label a product, you would need to identify the items you would want to dropship, then contact the supplier of the item, send them photos of the item(s) you would want to private label, pay, and get them sent to your fulfillment collecting company.

An easier way to bring manufacturers to private label products for you is to check into Alibaba.com and use their RFQ sourcing tool. You could even start your local products like tailored clothes and send them across the country.

For any business, you have to understand the rules. It’s very important to be familiar with the techniques of handling, sourcing, and shipping.

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