How To Start Dropshipping In Nigeria In 2025
Why start dropshipping
Many people dream of a profitable business that serves customers all over the world. If you are one of them – you’re in the right place.
Dropshipping is the business that provides equal opportunities to everyone.
It doesn’t matter whether you are an islander or a resident of a busy metropolis.
If you want to secure a better future for yourself and your family, you can easily set up an online business that will bring you money at any point of the globe.
You don’t need to manufacture products or to buy them from someone in advance.
All you need is stable Internet access and an online store. From here, your business journey begins.
How dropshipping works
Why start dropshipping in Nigeria
Nigeria, the most populous country in Africa, has emerged as a promising destination for aspiring dropshipping entrepreneurs. With a rapidly growing ecommerce market and a tech-savvy population, the opportunities for dropshipping businesses in Nigeria are truly remarkable.
One of the primary advantages of starting a dropshipping venture in Nigeria is the country’s burgeoning middle class. According to a recent report, Nigeria’s middle-class population is expected to reach 34 million by 2030, representing a significant consumer base for online retailers. Dropshipping businesses can capitalize on this trend by offering a diverse range of products that cater to the evolving needs and preferences of this growing demographic.
Moreover, Nigeria’s internet penetration rate has been steadily increasing, reaching over 50% in 2024 and is projected to reach 65% by 2025. This digital transformation has paved the way for the rapid expansion of ecommerce, with the Nigerian online retail market projected to grow at a compound annual growth rate of 13.5% between 2022 and 2027. Dropshipping entrepreneurs can leverage this digital landscape to reach a wider audience and tap into the country’s thriving ecommerce ecosystem.
Another key advantage of starting a dropshipping business in Nigeria is the relatively low startup costs. Unlike traditional brick-and-mortar retail models, dropshipping eliminates the need for significant upfront investments in inventory, warehousing, and logistics. This makes it an attractive option for entrepreneurs with limited capital, allowing them to test new product ideas and gauge customer demand without the risk of investing in a physical inventory.
Advantages and disadvantages of dropshipping in Nigeria
Advantages of dropshipping in Nigeria
1. Low overhead costs
One of the most significant advantages of dropshipping in Nigeria is the low overhead costs. As opposed to typical retail, dropshipping does not require a large initial investment in inventory, equipment, or physical store locations. This makes it an attractive option for entrepreneurs who are looking to start a business with minimal financial risk. The absence of the need to manage a physical store or warehouse means that business owners can focus their resources on marketing and customer acquisition, rather than being bogged down by operational logistics.
2. Minimal upfront investment
Another key benefit is the minimal upfront investment required to start a dropshipping business. Entrepreneurs can begin selling products online without the need to purchase a large stock of products upfront. This is particularly beneficial in a market like Nigeria, where capital can be a significant barrier to entry for many aspiring business owners. The low entry barrier allows more individuals to test and validate their business ideas before committing to larger investments.
3. Flexibility in product offerings
Dropshipping provides a high degree of flexibility in terms of product offerings. Business owners can easily add or remove products from their catalog without the hassle of managing inventory levels. This flexibility allows entrepreneurs to quickly adapt to market trends and consumer demands, which is crucial in a rapidly evolving ecommerce landscape like Nigeria’s. Additionally, the ability to offer a wide range of products without the constraints of physical storage makes it easier to explore different niches and target various market segments.
4. Ability to work remotely
The nature of dropshipping allows entrepreneurs to operate their businesses from anywhere with an internet connection. This is particularly advantageous in Nigeria, where the flexibility to work from any location can reduce the stress and overhead associated with traditional business models. Entrepreneurs can manage their operations from the comfort of their homes or even from remote locations, making it an ideal business model for those who value work-life balance.
5. Scalability
Dropshipping businesses can scale operations quickly to meet market demands. As the business grows, entrepreneurs can expand their product offerings and customer reach without the limitations of physical inventory. Scalability is crucial for long-term success, allowing businesses to accommodate increased sales and market fluctuations efficiently.
Disadvantages of dropshipping in Nigeria
1. Supply chain reliability
One of the main challenges of dropshipping in Nigeria is the reliability of the supply chain. Since suppliers are often located abroad, there can be issues with order fulfillment, shipping times, and product quality. This can lead to customer dissatisfaction and negative reviews, which can damage the reputation of the business. Ensuring consistent and reliable service from suppliers is crucial, and it may require significant effort to vet and maintain relationships with trusted partners.
2. Quality control issues
Maintaining control over the quality of products can be a significant challenge in dropshipping. Business owners do not have direct access to the products they are selling, which can result in inconsistencies in quality and customer complaints. This lack of control can be particularly problematic in a market where customer expectations are high, and there is a need for products that meet or exceed those expectations.
3. Customer service challenges
Providing excellent customer service can be more challenging in a dropshipping model. Since business owners do not handle the products directly, they may face difficulties in addressing customer concerns about product issues or shipping delays. This can lead to a higher rate of returns and exchanges, which can be costly and time-consuming. Ensuring a seamless customer experience despite these challenges is essential for maintaining customer loyalty and trust.
4. Regulatory and legal concerns
Operating a dropshipping business in Nigeria also comes with regulatory and legal challenges. The country has specific regulations and standards for ecommerce, business owners must navigate these requirements to avoid any legal issues. This can add an extra layer of complexity to the business operations, it is crucial to stay informed and compliant with all relevant laws and guidelines.
Although some may doubt the effectiveness of dropshipping, the countless success stories of entrepreneurs who have built thriving businesses from the ground up demonstrate that with the right mindset and strategies, this model is indeed worth pursuing.
What to dropship?
How much can you make with dropshipping?
How far you can go with dropshipping: real-life experience
FAQ
Is dropshipping legal in Nigeria?
Yes! When you are dropshipping, you are not ‘fooling’ anyone, and you are not breaking any laws. You are simply helping other people receive the items they want - and enjoy the perfect customer service you provide.
However, pay attention to your choice of products. It is illegal to sell branded, copyrighted items, or things like weapons (even their sports or hunting models), knives, smoking mixtures, etc.
How much money do I need to start?
At least $150 is necessary - let’s do the maths.
If you have some technical skills and can assemble and set up a website yourself, you will need around $150.
First of all, you will need to buy a domain name (a good one costs about $10-15, and you will need to pay this fee every year to prolong your registration).
After that, you need a hosting: a server that makes your store info visible to the Internet user. You can use the basic hosting service from AliDropship (‘Silver Plan’) and only pay $69 per year.
Then, you will need to install WordPress, which is absolutely free, and buy AliDropship plugin, which costs $89. It should be enough: WordPress + AliDropship make a proper basis to create a fully functional dropshipping store.
If you don’t have these technical skills, you can order a ready-made store based on the AliDropship plugin. It will be made for you personally by an expert team: the specialists will even add the first products to your store. So, technically, it will be ready to sell items from day 1. The basic ready-made dropshipping store costs $299; together with the annual domain fee, you will have to pay $310-315 to launch your business.
How to choose the store niche?
First, it should be something that you really like - or, at least, know deeply. You will be picking products, making advertisements, and advising customers, so you absolutely need to be a pro in this.
Also, this niche should be popular with buyers and easy to promote online. Here is a complete niche selection guide that will help you!
Where to find the products?
AliDropship plugin lets you easily import products on your dropshipping website. Basically, it transfers the products’ titles, descriptions and images in a single click. So, all you need to do is browse and find good quality products from reputable sellers.
Alternatively, you can use a database of over 50,000 selected products which are guaranteed to be in high demand. This database is available within AliDropship plugin: you can see it when you go to the Import section of your AliDropship-based store. The best part is that all the products’ titles and descriptions are already edited there, so you won’t spend your own time doing this yourself.
If I sell products, how can I compete with AliExpress itself?
AliExpress is a large shopping platform where sellers offer everything at once. At the same time, your niche dropshipping store is focused on a specific range of products. Surely, you are more client-oriented than a large-scale store, and this is why buyers will choose you over.
Will my buyers know they are actually buying items?
It’s not likely. Even if they see Chinese names/addresses/characters on the wrapping paper, it won’t tell them anything. Lots of warehouses and manufacturing facilities of the largest global companies are situated in China, so there is nothing strange if a buyer receives a package of the Chinese origin.
Also, you can write your suppliers directly and ask them not to put any promotional materials into the package. Sellers are always glad to partner with dropshipping store owners because this partnership is profitable, so they will be happy to help you.
Will my buyers agree to a long delivery?
Long delivery itself isn’t a problem. Your customers are not buying life critical items from you, so they don’t mind waiting - especially, if you offer them an appealing price and a low-cost shipping.
Besides, you can choose the ePacket delivery method which cuts up the delivery time significantly. With ePacket, it will take the packages 7-15 days to arrive.
What if a buyer asks me for a refund?
Refunds are the responsibility of the original suppliers. Usually, they refund low-cost purchases really quickly, so there is nothing for you to worry about.
How to promote the store?
To make profit from your store, you first of all need to attract traffic to it. There are lots of ways to promote your store online for free, so pick the ones you personally like. Also, read the free marketing tips for dropshipping business: an experienced team brings them to you every week!
Will WordPress or AliDropship limit my activity and charge business fees?
No. The only recurring fee is the domain fee - you will have to pay for it every year, otherwise, your site won’t be visible on the Internet.
WordPress is completely free, and all the AliDropship solutions only require a one-time payment. Whatever AliDropship tool or service you get, you remain a full owner of your business. There are no limits on the amount of orders you can accept, or the volume of profit you make, or the quantity and the content of the products you import, etc. You are your own boss!
Free Dropshipping Guide
