Becoming A Distributor In Nigeria: How To Start A Distributorship Business In Nigeria

Becoming A Distributor In Nigeria: How To Start A Distributorship Business In Nigeria

By NaijaGists.com Creative Reporter

Do you really want to find out how you can start a distributorship business in Nigeria? Do you care to learn the requirements for starting up such a business in Nigeria? Then, follow the content of this article down the page to learn appropriately.

Basic Requirements for Starting a Distributorship Business in Nigeria

The following are the basic requirements for starting distributorship business in Nigeria:

1. You’re expected to sell certain products together with their similar products. For instance, if you’re distributing flour, then you’re expected to also distribute sugar, groundnut oil, baking powder, butter and other similar products alongside.
2. You’ll be buying from the manufacturers in bigger quantities while you’ll be distributing in smaller quantities to the retailers. For instance, if you’re interested in distributing ground foods, then you’ll be buying products like Semovita, Semolina, Pando Yam, and the likes in trailer loads and will be selling to the retailers in bags.
3. You’re expected to keep some money to be used as capital.
4. You’re expected to employ a good number of sales representatives to assist you in distributing products.

Are you thinking you cannot start a distributorship business in Nigeria because you don’t have money at all? All you have to do is compose a captivating business proposal, tender this proposal to the company and get ready to provide a suitable guarantor that will stand in for you at the company.

Once you’ve got all these prepared, becoming a distributor for as many companies as you want in Nigeria becomes feasible. Becoming a distributor for big companies in Nigeria is as simple as that. And this was how a friend of mine became a distributor for a manufacturing firm in Lagos many years ago. Today, he has become so prosperous that he owns more than three personal houses in Lagos alone.

What are the Major Tips to a Successful Distributorship Business in Nigeria?

To really become a successful distributor in Nigeria, follow the tips below:

1. Build a community of customers: By putting customers in mind, you’ll successfully run a distributorship business in Nigeria.
2. Build and keep good relationship with all of your customers
3. Get back to all of your customers and give them free mentions even while making jingles and all of that
4. Focus much more attention on sales rather than on costs.

Steps To Starting up a Distributorship Business in Nigeria

• Get all necessary permits and license: If you’re distributing or dealing in all kinds of products that require permits and license such as medical drugs, herbal medicinal products, drinks, foods and the likes, you’ll be disturbed without being licensed and permitted to distribute those products. 

• Get a shop or store: In order to continue distributing the company’s products, most of these companies would require that you rent a big store or shop whereby you can keep or store the products they entrusted with you.

• Get proper product and market orientation: It’s going to be very difficult to become a successful distributor when you don’t have any much idea or knowledge of the product you’re distributing. You’ll also have serious challenges when you don’t do your market survey properly for the products you’re distributing which has a lot to do with the right customers who will regularly order from you. 

• Register your business as a company: Why would you need to register your business as a company? This would be necessary as most manufacturing companies would prefer to deal with you directly not as an individual distributor, but rather as a company. Note that not all companies may require you registering as a company before you can be considered as a major distributor for their company. 

• Get some sales representatives and a motor van: To really become successful in the distributorship business in Nigeria, you’ll need to employ some sales representatives who will assist you in distributing the products to the numerous customers from town to town and from state to state. You’ll also need a motor vehicle that will aid in conveying light and heavy products from one location to another. 

• Initial deposit: While hassling to get a distributor position with some companies, you may be required to pay an initial deposit, whereas, this may not be required at all in other companies. So, you need to prepare for this while looking for the distributor position in Nigeria. 

Profit Potential Of Distributing Products For Manufacturing Companies in Nigeria?

The profit you’re going to be making in distributing for companies in Nigeria depends on the volume of the products you’re distributing and also on the sales potential of the particular products.

For instance, if you’re distributing for an instant noodles manufacturing company, of course you should know this is going to earn you huge profits as this is a source of providing instant or fast foods to the people.

So, in order to ensure you’re going to be making good profits, put the kind of product you’ll be distributing into consideration before applying to be a major distributor for any company. You must ensure you distribute only the products that sell faster in the market. You need to distribute hot selling products only to earn big.

Hot Selling Products You Can Distribute in Nigeria

Below are some of the hot selling products you can apply for and distribute in Nigeria:

• Juice and soft drinks

When it comes to choosing the hot selling products in Nigeria, juice and soft drinks are part of them as most people like taking drinks after work or after meals sometimes.

• Table water

Table water is another hot selling product that you can distribute and sell in the cities of Nigeria. It’s highly-promising especially during the dry season. People prefer the table water to ordinary water at restaurants. Most families buy table water in packs and cartons for home use. At ceremonies and occasions, people buy loads of table water and use these to entertain their invited guests making them highly-comfortable.

• Medicines, herbs, and drugs

This is, of course, one of the hottest selling products in Nigeria as almost everybody has one health issue or the other in the body. So, if you can deal in and distribute drugs and herbs, you’ll make substantial profits over time.

• Cosmetics

Cosmetics are equally promising when it comes to making huge profits from sales. It’s an essential commodity that a lot of people always make use of at home, at shops and at several occasions.

• Flour

As this is always needed to make other products such as snacks, cakes, bread and so many others, it’s highly-promising when it comes to making good profits.

• Cement

This is another hot selling product you can be distributing in Nigeria as everybody wants to live in a self-owned apartment. The rate at which people are ordering for cement nowadays has gone up more than ever.