Just like any other business in Nigeria, Buying and Selling Electronics is a very lucrative business to start. The World is evolving around technology already, and the need for electronics keeps rising every day.
However, that doesn't mean you should jump into the electronics business without having any prior knowledge about it. No, don't do that, or else the business may go bankrupt.
There are certain things to put in place before starting any business to be successful in such a business industry. These are some of the factors you must consider before diving into buying and selling electronics business in Nigeria.
Sourcing the product is a very important factor you must consider in any business. Sourcing of goods you want to sell plays a very vital role in the success of the business.
Difficulty in sourcing the products you want to sell can cause a lot of headaches to you, which can make you leave the business in no time.
So you need to know how to Source for the Electronics product you are about to start selling.
Let me tell you a business secret: People don't buy because they like you or they want you to make money. They buy what can solve their problems. They buy products that can help them live their lives better.
So the question you need to ask yourself before starting the business is 'How Can My Products help people". Once you can solve this rhetorical question, Move to the Next Question, which is…
Suppose you ask me to choose a niche for you in this electronics business. I won't advise you to sell radios. Why?
Nowadays, Radio Programs Software or Apps have been embedded into Smartphones and Cars, etc, which means people won't longer find the need to own a radio since they can access it via their smartphones.
Not only Radios, but some products also are as good as dead. They are no longer in demand. Don't start with such products when you want to start your electronic business. Go for hot products, products people still demand.
While choosing products that are in demand, don't forget to select the ones with a good profit margin.
Now, you have a better understanding of what you need to consider before starting the business. The next question is, "Do you know the steps to take to start buying and selling electronics business in Nigeria?" You are curious to find out; that's why you are here.
Worry no more; spare me 2 minutes of your time. Let me take you through the steps involved in starting your own electronics business in Nigeria.
Every business needs market research. You need to know if there are people in the business already and what they are doing to keep up with the business.
Thorough Market Research provides you with information about the best location to start your business; it reveals your competitors to you. It also tells you what your competitors are doing and what they are leaving behind.
Anything started with no proper planning comes out well. It would be best if you planned before starting any business; the same applies to this electronics business.
A good Business plan must cover all the information needed to set up the business, which includes but is not limited to the objective of the business, selling patterns of your business, etc. It must also cover the profit and loss analysis.
It would help if you had a Business Plan to;
● Come up with the best ideas
● Raise capital for the business
● Make best decisions
● Attract angel investors
● Identify the business weaknesses
As I said earlier, choosing a niche that sells well is very important. With this, you can secure more profits.
To choose a niche in the Electronics Business, you have to study the Market, see what your competitors are doing, and how far the products are selling.
Here are some of the Products you Can Consider Selling. These sets of electronics are always In demand and profitable
● Television Sets
Television Sets and smartphones are no doubt one of the hottest products at the moment. They sell faster. Almost every household has at least 1 TV and those that don't have plans to get one anytime soon.
Nowadays, if you check most Restaurants, hotels, offices, etc. They all have at least a TV set. PEOPLE WILL STILL BUY THIS PRODUCT IN THE NEXT 10 YEARS
● Smartphones and Gadgets
Technology has gotten better with the years; bye to the Stone Age Era when buying a phone was like winning a Visa Bet. It only happens once in a while.
Almost everyone now owns a smartphone. With the frequent release of new models, Smartphone is a hot product massively in demand.
● Generators, Air Conditioners and Fans
These products are also in demand. As Human beings that we are, we love living a comfortable life. These products help us live a life of comfort
Other Products you can sell include;
● Fridges
● Mobile Accessories
● Electronic Cookers
Capital is the backbone of any business. You need money to start a business, no matter what the business model is.
It would be best if you sourced capital before you start your buying and selling electronics business.
The best way to secure your business rights is to register your business name with the Corporate Affairs Commission, CAC. CAC is a body that allows and regulates business registration in Nigeria
These are some benefits you can also enjoy when you register your business name with CAC. It includes
● Corporate Account Opening: - One of the drawbacks of opening a corporate account is the issue of a CAC Certificate. A business Owner without the Certificate can't open a corporate account that bears their business name
● Building Credibility: - Customers tend to patronize someone with valid and strong proof of business registration. Letting your customers know that your business is registered with CAC can lead to more patronage. TAKE IT SERIOUS
There are so many electronic dealers you can register with. The choice of the one to go for depends on the niche of electronic business you want to start.
If you are into the Smartphone business, consider registering with major phone dealers like Tecno, Infinix, Itel, Redmi, etc.
The benefit of Registering with Major Electronics Dealers
● You'll buy products at a lower price. Major Electronic Dealers will sell products to you at a discounted rate; hence, you make more profit.
● You may Enjoy some free services like Free Servicing of products and Free delivery
● You can get products on credits and pay them back later. Once you build a very good credit score with them, They will allow you to buy and pay later
To make your dream of "starting an electronic business" come true. It would help if you had a physical Store. This Physical store can be assisted with the virtual store or e-commerce site.
You can create your virtual shop using one of the best e-commerce sites, Vendorflip.
Having a physical store makes you accessible to your customers any time of the day. It also builds trust with them as they are rest assured that you can be reached anytime In case things go otherwise.
You need some amount of money to erect and furnish your store. You can spend as little as ₦100k or as much as 1 million naira to set up the shop. It depends on how your pocket is
Note: The location of your store plays a big role in your business. Choose where you can easily sell your products.
Now, you've successfully started an electronic business, but the work is yet to be over. Promotion and marketing are even where the real work starts. Your business needs Promotion.
Don't assume People already know what you sell just because you have a shop. You can't sell well with such a mindset. It would be best if you reached more people to patronize you. In simpler form, YOU NEED STRONG MARKETING STRATEGY.
Marketing Strategies You Can Adopt
● Social Media:- Social Media Platform is one of the best ways to reach more people across the country. Social media marketing can be affordably done by creating engaging content or running promotional ads on Facebook, Instagram, TikTok, etc.
● Advertise on Third-party sites: - You can also advertise your products with third-party sites like Jumia, Konga, Jiji, and most recently Vendorflip Classified. They help you reach your audience faster.
● Mouth-to-Mouth Advertisement: - You can also advertise your products yourself using the "Tell a Friend to Tell a Friend" Approach.
How to Keep People to Continue Buying from You
● Have a Great Customer Service
● Give Referral bonuses
● Do Giveaway and Share Incentives
● Create a Positive After-Sales Services
Which product sells Faster
Smartphones, mobile Accessories, computers, laptops, and TV sets sell better than others. However, this doesn't mean other products don't sell as well. They also perform better.
Buying and Selling Electronics in Nigeria is a profitable business that can fetch you seven figures of naira profit if done well.
TV sets, smartphones, gadgets, Computers, Laptops, etc. are some of the hottest products currently in Nigeria.
You must carefully understand the steps taken in launching your own electronics business to make it a successful one.
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