Case Study: How i made over N200,000 in two months selling El-glittas Hair Wonder and 4 reasons I like selling Nigerian locally-made products in my online business

Case study:

Elglitas Hair Wonder cream and Oil

The first time I saw this product I had my doubts – will it be good enough? will it fly? Until I started selling and made over N200,000 in two weeks.

How it started

One day I saw a merchant ship about 20 units of the item- that moment I said to myself I have start selling this product on my online store too. The next day, I got one for myself to feel how the product works; and right there and then, I thought to myself: this is a unique product I can sell; The product is in line with the kind of products I like to sell online: Elglittas Hair Wonder provides good solution(hair growth solution and hair loss prevention), had a profit margin of over 300% as it was hot selling at the time, and it is easy to source (as it was made in Nigeria)- so I jumped in.

I quickly inquired how much I could get it from supplier. It happened I could get at a very good price of N1000 (all costs inclusive) each.

I then sold online for N3500-N4000.

As it is with selling things online, you can place very good mark-up on newly introduced products online and quickly make huge profit (before other online merchants discover what you sell and start competing with price) – and by the way, as I write this, you can get this online for as low as N1,200 on most online marketplaces in Nigeria.

In all, I racked up sales of over 150pcs in two weeks, which resulted in over N300, 000 in revenue.

5 reasons I like selling Made in Nigeria locally made products

Looking back on my experience with elglittas Hair Wonder, I would like to draw some key points about selling products locally made in Nigeria, here goes:

  1. You can get better bargain from suppliers in Nigeria because you won’t have to take so much time to connect well with them.

Nothing can take the place of doing business face to face.

Most times you may not get the best bargain from your supplier until you meet with them face to face. Communicating face to face help build meaningful and stronger business relationships.

See this article on body language and how it can help you in bargaining with your suppliers for good deals that would benefit your business

In my case with Hair Wonder, the arrangement was pay-before-supply (I had no problem with that as it was quite cheap to get the supplies I wanted per time), but I’ve had lots of my suppliers supply me and I pay later because they know me one on one. They have assessed my personality and feel they can trust me- such bonds can be achieved when you meet suppliers face to face.

So except you have enough money for flight and other expenses to go to other countries to meet supplier, you might want to do a research on good Made in Nigeria products you can source online and start selling

  1. You can find it easy to transact business and communicate well with a Nigerian supplier

You have to communicate with your supplier one way or another. You have to tell them what you want, how many quantity, what quality and at what price. There are some of my suppliers in China who I wished they understood English; Most times I use translators online to communicate what I want (and that is not sufficient in all cases).

You might have problem getting good deals if you can’t communicate effectively in the language they understand. It can be stressful and also increases transaction time.

My transactions with Nigerian suppliers take me 1-2days to wrap up; and I communicate perfectly with them to get the best deals I want.

  1. You don’t have to deal with clearing and other freight logistics issues:

Your supplier residing in Aba or any other place in Nigeria means you do not have to worry about freight and other importing logistics headache that encroach into your profit. You want to as much as possible reduce your cost of getting your products so you can have a flexible pricing strategy. Often times, while I get the unit cost of an item very cheap from China; I pay a lot in clearing and handling before the item gets to me.

Your item cost price + shipping and handling cost helps determine your cost of getting your product to you. In the case of my Nigerian suppliers, cost per unit cost might be high but I do not spend much getting my item to me. I do not worry about shipping cost or other clearing issues.

  1. It gives me sense of contributing my quota to the development of our great Nation Nigeria.

Selling these products help me have a sense of belonging.

It shows I’m in tune with the tides of change coming in Africa. I believe there’s so much Africa can offer this world. My online business keeps confirming to me that Africa can compete on the global market. We just need more exposure. The more Nigerians patronize made-in-Nigeria products, we can begin to appreciate ourselves and believe we can do it. We can sustain ourselves… we can feed the world.

Recommendations

With internet, we see so many new products every day, and we see locally made products paraded more often now online. I would like to see more, and we can do that by having more products from manufacturers and suppliers. Having a place where one can easily source online for suppliers of locally made products in Nigeria.

Online merchants can easily scroll through list of suppliers to contact them, inquire and place order.

Manufacturers and suppliers can have a stronger presence online so as to be located easily. And they have a medium to unleash their new products into the market for customers to see.

In conclusion, doing trade international can be very hectic. As much as possible, you can avoid them. Although I sell imported products, I also make sure my eyes are open out there to locate locally made products to pounce on and make good money.

What about you? What other made in Nigerian products have you sold very well online? What have you learnt selling them? You can add in the comments below.