It was the 3rd of February, 2022. Mowa had just finished university and desperately needed a means of income to cater to her needs. Thankfully, a friend advised her to purchase an online course on dropshipping. She would only need to invest a token on importation and start making cool money for the rest of her life.
The prospect sounded enticing to Mowa. If only she had known the kind of challenges she would have to grapple with as a dropshipper in Nigeria, from frustrating days with unreliable dispatch riders to dealing with angry customers who wouldn’t hesitate to drag her business on social media for the slightest issue with their order.
The journey was dreadful for Mowa, but it doesn’t have to be so for you. In this article, we’ll explore the top seven challenges dropshippers face in Nigeria and how to overcome them.
Challenges Dropshippers Face In Nigeria
Dropshipping is no doubt a goldmine even in Nigeria, especially with the e-commerce market expected to reach $6.40 bn by 2024. However profiting from this opportunity would require an extensive knowledge of the challenges that beset the dropshipping industry in Nigeria.
Here are some of them:
Finding a Reliable Supplier:
One major challenge you’ll face as a dropshipper in Nigeria is finding a reliable supplier to provide you with goods. This is a crucial aspect because these suppliers are responsible for fulfilling orders and shipping products to customers. I know there are a lot of big names out there, but most times they only connect you with suppliers and do not take responsibility for your transactions with them.
Another issue is ensuring that the products being sourced from suppliers meet the desired quality standards expected by customers. If the goods are subpar, it can lead to complaints, dissatisfaction, and damage the dropshipper’s reputation. Being dragged for a bad product you have no control over can be a nightmare. This is why you need to choose your suppliers carefully.
Trust Issues
Building trust is a significant hurdle for dropshippers in Nigeria, as customers are essentially purchasing products you cannot physically inspect beforehand. As new businesses, it can also be difficult for dropshippers to establish a strong brand name and reputation that instills confidence in customers to buy from them.
Lastly, security concerns arise as customers may be apprehensive about providing sensitive information like credit card details online due to the prevalence of scams. This necessitates robust security systems from dropshippers to build customer trust. You must be able to provide a safe space for customers to interact with you and relay their challenges for quick action or you can let trusted dropshipping platforms handle all that from you.
Running out of Stock
The risk of running out of stock for the products you offer is one of the biggest fears of all dropshippers. This can happen due to various reasons, such as high demand, supply chain issues, or problems with suppliers. If you run out of stock as a dropshipper, you may miss out on potential sales opportunities, leading to lost revenue and disappointed customers. Customers who place orders only to find out that the product is unavailable may become frustrated and lose trust in your business.
Additionally, running out of stock can damage a dropshipper’s reputation, as customers may perceive it as a lack of proper inventory management or unreliable service. This can make it harder to retain existing customers and attract new ones in the future. To tackle this, identify hot selling products and stock them in bulk. Be acquainted with platforms like Traffikate who consistently provide you with this information and also assist you in fulfilling customers desire and demand.
Problem with Delivery and Dispatch Riders
Effective and reliable delivery is crucial for many dropshippers in Nigeria, as they rely on third-party logistics providers or dispatch riders to transport products to customers. However, there can be challenges associated with these delivery services.
One issue is the availability and reliability of dispatch riders. In some areas, there may be a shortage of reliable riders, leading to delays or failed deliveries. Additionally, riders may face challenges such as traffic congestion, unfavorable weather conditions, or poor navigation, which can further delay or disrupt deliveries.
Another challenge is ensuring the safe and secure handling of products during transit. Dropshippers may face situations where products are damaged, lost, or stolen during the delivery process, leading to customer complaints and potential refunds or replacements. Furthermore, tracking and monitoring deliveries can be a challenge, particularly in areas with limited technology infrastructure or unreliable tracking systems.
This can make it difficult for dropshippers to provide accurate updates to customers regarding the status of their orders. There are two ways around this, either you establish a good relationship with a trusted delivery service provider which is usually costly or you get your suppliers from a platform that handles the delivery for you. One thing Traffikate excels so much at.
Low Profit Margin:
Many people have given up on dropshipping as a result of this. Low profit margins can be attributed to several factors: competitive pricing, high overhead costs, supplier pricing, and shipping and handling costs.
Low profit margins can pose a significant challenge, as it may limit dropshippers’ ability to reinvest in their business, expand operations, or weather periods of slow sales. Additionally, it can make it difficult to offer competitive pricing while still maintaining a sustainable business model. If you’re on this ship and want to increase your profit margin, check out Traffikate product pricing and you’ll be amazed.
Building a Brand Online
According to Doofinder 2024 dropshipping stats, a good social media presence can boost your sales by 30% as a dropshipper. However, standing out and differentiating your brand online can be challenging. Many dropshippers operate on a smaller scale with limited resources for branding and marketing efforts, making it difficult to build brand awareness and visibility. Maintaining a consistent brand identity across various online platforms and touchpoints can also be a challenge, particularly for dropshippers who may have limited control over certain aspects of the customer experience. Overcoming this requires the willingness and readiness to learn, unlearn and relearn
Selecting a Dropshipping Niche or Not
Deciding whether to operate within a specific niche or offering a diverse range of products is another major for dropshippers in Nigeria. This decision can have a significant impact on your overall business strategy and success. Ultimately, the decision to select a niche or offer a diverse product line depends on various factors, such as the dropshipper’s resources, expertise, target market, and growth aspirations. Some dropshippers may choose to start with a niche focus and gradually expand their offerings as their business grows, while others may opt for a more diverse approach from the outset. Careful market research, competitor analysis, and strategic planning are crucial in determining the best approach for each individual dropshipping business in Nigeria.
Dropshipping Challenges in Nigeria: An Ultimate Solution
Dropshipping becomes exciting when all these problems cease to exist. Imagine not having to worry about delivery hassles, or bother about having payment issues with your customers. Imagine if you could earn as much as 50% on each product you sell. All these aren’t impossible. At Traffikate these are your welcome gifts upon sign up and you never run out of them.
Frequently Asked Questions (FAQs)
How much capital is needed to start a dropshipping business in Nigeria?
The initial capital required to start a dropshipping business in Nigeria can vary, but it is generally low compared to other business models. You may need funds for setting up an online store, branding, marketing, and other operational expenses. However, you don’t need to invest in inventory or a physical storefront.
How do I find reliable suppliers for my dropshipping business in Nigeria?
Finding reliable suppliers is one of the biggest challenges for dropshippers in Nigeria. You can research and vet potential suppliers online, join dropshipping forums or communities,, or work with established dropshipping directories or platforms. One of such established platforms is Traffikate where you gain access to a supportive community of dropshippers and profit margin you can’t get elsewhere.
What are the best products to dropship in Nigeria?
The best products to dropship in Nigeria can vary depending on factors such as market demand, competition, and your target audience. Popular product categories include fashion and clothing, electronics, home and kitchen items, beauty products, and health supplements.