The economy of Nigeria keeps evolving year after year despite’s many national challenges, with a slight shift from an oil-based economy to manufacturing and agriculture the Nigerian economy would do a lot better.
The essence of this guide is to explore some wholesale business opportunities in Nigeria. If you are planning to start a wholesale business but looking for wholesale business ideas and opportunities then this is for you.
Nigeria’s wholesale industry has the potential for more profit with low investment and low to zero barriers to entry.
Now, let’s examine some profitable wholesale businesses that you can start in Nigeria.
Table of Contents
What is Wholesale Business?
A wholesaler buys from manufacturers or importers in bulk and resells to people who sells to final consumers, these people are called Retailers. In most cases, they get profitable discounts from breaking bulk in larger quantities.
How do Wholesalers Make Money?
Wholesalers orders the products directly from distributors or manufacturers in some case, add their own markup, and then sell to retailers.
Where Can I Find Wholesalers?
The process of finding wholesale starts with first understanding the product. You need to do some research to find the contact details of these distributors and manufacturers.
Some of the most viable ways to find contacts of suppliers in Nigeria is to find someone who is actively in the business and can give you information on where to locate these suppliers.
You can also do your own research by checking on business directories and websites. You may also want to search for local Nigerian businesses selling products overseas, such as furniture, electronics, clothing, or food.
If you’re planning to start your wholesale business with little capital you can consider sourcing for products locally.
How Do I Start Wholesaler Business?
The first step to starting your wholesale business is researching and purchasing the products you want to sell in bulk.
Then, find a manufacturer that will produce these items for you at an affordable price. There’s more to the business than just finding products and suppliers.
You need to know how much you’ll sell each item for, what the wholesale price is of your product per piece, and how much inventory you should have on hand in order to make an appropriate profit margin.
You also need to be aware that some wholesalers may require a deposit upfront before they start making products for you.
Lastly, when the product is ready to sell, there’s a variety of ways that wholesale distributors can market your products so that they’re visible and accessible to customers.
Products in Wholesale Business Opportunity Nigeria:
- Kids and adult shoes and school supplies
- Furniture and fittings for luxury homes
- Windows components
- Computer accessories
- Ankara and other traditional fabrics
…and lots more.
You should avoid some type of products as a wholesaler such as novelty items and seasonal goods. Perishable foods and goods should also be avoided.
In Nigeria, you need to have a lot of capital in order to start the business with a Wholesale Business Opportunity because it is not usually affordable for everyone starting this type of business.
Ease of doing business in Nigeria
Nigeria is ranked 114 out of 190 countries in the ease of doing business report by the World Bank, which means it’s easier to do business here than most African countries.
Although the country is currently facing security issues, Nigeria is not as volatile as countries like Iraq or Afghanistan and some part of the country are still peaceful for doing business.
Factors to consider before starting a wholesale business in Nigeria
– Capital: You need a lot of capital to start this type of business in Nigeria because not everyone can afford it.
– Local Economy: There are some areas that have a good economy and others that don’t have an opportunity for growth, so you will want to be careful about the region where you choose to open your shop.
-Government policies: Nigeria is trying to change its policies so it can become more business-friendly.
-Security: Nigeria has been the victim of terrorism in the country and parts of this are a problem for businesses that want to open their doors, but some areas still remain peaceful.
How to get started with Wholesale Business Opportunities in Nigeria?
1. Do product research
– You want to be certain that the product you are looking at is a good investment.
– Research products, markets and prices in your country before exporting them abroad.
– The best way make sure you’re doing research correctly is by finding articles online or talking to other people who have experience with importing goods from Nigeria into their own country. Also sell products people want and not products they need.
– If you’re considering exporting goods into Nigeria, research the market.
– Have a clear understanding of what people in Nigeria are looking for and how to create demand for your product by learning more about Nigerians’ culture, needs and wants, as well as any restrictions on imports that may apply.
– You can also find out about importation restrictions by contacting the Nigerian Embassy in your home country or customs.
– Some government agencies are established to promote exports and foreign investment, like Nigeria’s Investment Promotion Commission (NIPC).
– If you’re looking for an easy way into the market without dealing with import barriers yourself, consider partnering up with a local manufacturer or distributor who has experience.
2. Get a good location
You need a good location where people interested in your product will find you.
This may not be the same location as where you store your products, but it’s important to have a business sign that can easily be seen from outside of the building and place it in a highly visible area.
– Use high traffic areas
– Consider parking arrangements
– Make sure customers are comfortable on visit
– Make sure your location is environmentally friendly
– Use a trusted agent to find you the perfect place.
3. Startup capital
Startup capital is important for any business, and a wholesale business no less.
It’s the money you’ll need to purchase your products from suppliers at prices that are cheaper than what customers will be paying.
– Start with Nxx million – this should give you enough cash flow to make it through three months of sales before needing more injections of capital.
– Remember to take into account the costs of travel, transportation and your overhead expenses too like rent or mortgage, utilities etc.
– You’ll need a supplier who will offer you products at wholesale rates so that you can sell them for retail prices when they’re in stores or online through marketplaces like Jumia, Konga, jiji etc.
4. Find reliable suppliers
Find an experienced supplier who understands targets and budgets and knows how to get the best deals for you is key.
This goes a long way to determine the success of your business.
It’s important that they have access to large quantities so that you can order larger volumes without incurring more costs than necessary.
Your supplier should be able to give an extended credit period, offer competitive rates as well as work closely with you to ensure the products are delivered on time and in good condition.
5. Have a fool-proof marketing strategy
A foolproof marketing strategy is required to promote your wholesale business in Nigeria.
– The most important aspect of your marketing strategy is the product itself and how you present it to customers. chances are good that your advertising will involve print media to reach a broad audience in Nigeria or other countries using this form of advertisement.
– A wholesale company can offer a wide range of products, but some are more popular than others. Understanding what people want helps ensure that they will buy from you instead of going elsewhere for their needs or desires.
– When planning for the online side of your business, it’s imperative that you keep up with the latest developments in e-commerce.
– Additionally, it’s important to develop your website and make sure that its content is optimized for search engines.
If you have the opportunity to invest in a wholesale business, take it! Make sure that your goals are aligned with what this company is looking for.
The opportunities available at Wholesaling products in Nigeria seem promising and worth exploring if you’re interested in starting or expanding an existing retail operation.
Remember to research all of the costs as well as how much time will be required before seeing any return on investment. Use the wealth of free online resources to find out more about these possibilities so you can make informed decisions when considering wholesaling products from Africa’s largest economy!