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Home » How to Start a Dropshipping Business in Nigeria in 2024

How to Start a Dropshipping Business in Nigeria in 2024

Dropshipping has gradually become a popular business model with a low-risk way to start online stores for entrepreneurs. Nigeria, have a growing e-commerce industry on her own makes for a great opportunity for dropshippers.

With the global dropshipping market projected to reach $557.9 billion by 2025, growing at a CAGR of 28.8% from 2023 to 2025 (Grand View Research), it’s obvious that this industry is on the rise.

In Nigeria alone, the e-commerce market is projected to reach ₦15.4 trillion by 2025 (Statista).

So, dropshipping is actually a great path if you’re looking to venture into it, especially as a Nigerian. However, there are some things you need to know before you get right into it. From how it works, to what it involves, and some other things to help you make informed decisions in the market.

Is Dropshipping Legal in Nigeria?

Dropshipping is legal business model in Nigeria, and there are no specific laws or regulations prohibiting its practice.

However, one must comply with general business requirements, like registering your business with the Corporate Affairs Commission (CAC) and getting the necessary permits or licenses, if applicable.

Additionally, you have to ensure that your business is in line with consumer protection laws and regulations, like the Federal Competition and Consumer Protection Commission (FCCPC).

How Does Dropshipping Work in Nigeria?

Dropshipping is a retail business method where one company handles sales, marketing campaigns, and customer service, and a different company handles the manufacturing and fulfillment process.

When a customer places an order, a third-party supplier takes over. This outside supplier is the company that actually manufactures the product and sends it to the customer.

In some cases, one outside company may make the product, and a different one ships it. Nonetheless, the company that sells the product to a consumer is not the one that makes the item or fulfills orders. That’s the whole essence of dropshipping.

For example, let’s say you start an online store selling fashion items. You partner with a supplier who manufactures and ships the products directly to your customers.

You focus on marketing and selling the products, while the supplier handles the rest. This way, you don’t need to invest in inventory or worry about shipping and fulfillment.

Benefits of Dropshipping in Nigeria

Starting a dropshipping business in Nigeria offers several benefits, including:

  • Low startup costs: You don’t need to invest in warehousing or inventory.
  • No need to source materials: Your supplier handles the production process.
  • No warehousing or inventory management: Your supplier stores and manages the products.
  • No shipping headaches: Your supplier handles shipping and fulfillment t the customers.
  • Easier to develop products and change formulas: With dropshipping, you can quickly test new products and adjust your offerings without holding inventory.
  • Ability to focus on what you do best: You can concentrate on marketing, sales, and customer service, while your supplier handles the rest.

Challenges of Dropshipping in Nigeria

While dropshipping offers many advantages, it also comes with some challenges, including:

  • Competition: The market can be competitive.
  • Finding reliable suppliers: You need to research and partner with trustworthy suppliers who can deliver high-quality products on time.
  • Managing customer expectations: You must set clear expectations with your customers regarding shipping times, product quality, and returns.
  • Dealing with returns and refunds: You need to have a clear returns and refunds policy in place to handle customer complaints.
  • Keeping up with market trends: You must stay informed about the latest market trends and adjust your offerings accordingly.

How to Become a Dropshipper in Nigeria

Here’s how you can become a dropshipper in Nigeria:

Research and Choose a Niche

Selecting a profitable niche. Identify a market with low competition and high demand. Conduct market research using tools like Google Trends, Keyword Tool, or social media to find trending products.

Niches like home goods, fashion, and electronics are quite popular in Nigeria.

Find a Supplier

Find a supplier who offers dropshipping services, has a good reputation, and can deliver products promptly. You can use online directories like SaleHoo or Worldwide Brands to find verified suppliers.

Attend trade shows or exhibitions related to your niche to network with potential suppliers.

Set Up an Online Store

Create a professional online store using platforms like Shopify, WooCommerce, or BigCommerce. Choose a theme that resonates with your brand and customize your store to enhance user experience.

Ensure your store has a secure payment gateway and reliable shipping options.

Develop a Marketing Strategy

Create a marketing plan that includes social media, advertising, and content marketing. Utilize platforms like Facebook, Instagram, or Twitter to reach your target audience.

Run targeted ads to drive traffic to your store. Develop a content marketing strategy that includes blog posts, product reviews, or tutorials to engage your customers.

Start Selling and Fulfilling Orders

Begin selling your products and work with your supplier to ensure timely fulfillment. Use a dropshipping plugin like Oberlo or AliExpress to automate order fulfillment.

Ensure you have a clear returns and refunds policy in place to handle customer complaints.

How to Find a Supplier for Dropshipping in Nigeria

Here’s how to find suppliers for dropshipping in Nigeria:

Online Marketplaces

Use online marketplaces like SaleHoo, Worldwide Brands, or AliExpress to find verified suppliers. These platforms connect you with suppliers who offer dropshipping services and have a good reputation.

Industry Trade Shows

Attend trade shows and exhibitions that are related to your niche to network with potential suppliers. This allows you to meet suppliers in person, discuss your requirements, and build relationships.

Direct Contact

Reach out to manufacturers or wholesalers directly to inquire about their dropshipping programs. You can find contact information on their websites or through industry directories.

Online Directories

Use online directories like Thomasnet or Alibaba to find suppliers. These platforms connect you with suppliers from around the world.

Social Media

Use social media platforms like LinkedIn or Facebook to connect with potential suppliers. Join industry groups or forums to network with other entrepreneurs and find reliable suppliers.


Ask fellow entrepreneurs or friends in the industry for referrals. They may have worked with reliable suppliers in the past and can recommend them to you.

Supplier Verification

Verify your supplier’s credentials before partnering with them. Check their website, social media, and reviews to ensure they have a good reputation. You can also contact their customer service to assess their responsiveness.


Dropshipping has risen in popularity alongside e-commerce as research shows consumers now increasingly turn to online shopping for convenience. The global dropshipping market size was valued at $225.99 billion in 2022 and will hit a compound annual growth rate (CAGR) of 23.5% from 2023 to 2030. By understanding the ins and outs of this industry, you can build a successful and profitable online business.

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