₦airaland Forum

Dealdey was set up as an online deal site where merchants offer price slashes and discounts. The idea was to give buyers prices that would not be found in any other online store. And that primarily, is the reason why buyers are willing to pay before receiving their orders.

This is the same reason why lots of merchants shy away from selling on Dealdey, because you were expected to sell your products lower than the likes of Jumia and Konga. And Dealdey had a 25% commission on each sale (now its a maximum of 15% commission). Sell low with very high commissions just doesn't seem like a good bargain.

What the successful merchants discovered was that they had to import their products themselves, or source them from importers in order to be able to sell profitably, while meeting Dealdey's requirements.

The good side to all this is that Dealdey operates a prepaid system (buyers have to pay for any order made before delivery is made). So the case of having returned or cancelled orders are minimal, in most cases non-existent. Most cancellations were as a result of sellers not being able to meet up with the supply deadline.

Some simple methods I discovered that worked well

1. Buy directly from importers or wholesalers

2. Products that are so rare that you can barely find them on other stores

3. Targeted products at the females

4. The pricing of the products

5. A modified method of dropshipping

6. The high rate of turnover monthly

7. Quick response to orders made

1. Buy directly from importers or wholesalers - Everyone knows that to get the best price for any product, you'll have to bypass the middlemen. That will mean dealing directly with the importer. The downside to this is that importers don't sell in units. They sell in cartons, and one of the ones I deal with sells only in round figures. He only sells 10, 20, 30 etc cartons. And these cartons contain anything from 6 to 48 or more units of the items you're buying. As a merchant, you need to be able to sell off these items as soon as possible.

One strategy that could help is that you list them on as many stores as possible. During the time Jumia ran Deal of the Day, you could also list it for those deals. If the products are attractive, and the prices good, you're sure to make substantial sales within the period of 1 month. Wholesalers can also give you competitive prices, but would definitely be higher than what the importer sells since they buy from the importers. Activities in this area never ends cause you have to be constantly on the watch out for those who can offer you great products are the most competitive prices.

2. Products that are so rare that you can barely find them on other stores - If you can find great products from reputable brands that are not sold on any other online store, you may have struck a goldmine. What it means is that you're the pioneer of that product online, and you invariably have the privilege of fixing the price. The prices must reflect the perceived value of the product, or else you end up not making a single sale. I know the feeling, cause I've being there quite a number of times.

3. Targeted products at the females - From my study, females shop more than males. So if I have to choose between a product that appeals to males or females, I'll go for the fairer sex. I'm not sure of the reason, but I know this strategy pays very well.

4. The pricing of the products - There's a limit to the amount anyone can walk away from. Each individual have different amounts, but people are more willing to buy more of products that fall into a particular price range. Anything higher than their range is perceived a luxury good. For some, it may be N5,000, while some others could comfortably shop online in excess of N100,000. For the items that are higher in prices, the volume of sales cannot be generally compared to the lower priced ones. From experience, items between the ranges of N1,500 to N10,000 sell very well.

Of course if you have a high priced item, say a solar power system or a car, if the price is right, you'll get orders. However, let the pricing of products remains a guide when sourcing for products.

5. A modified method of dropshipping - Dropshipping basically is a supply chain strategy where a seller displays items for sale he doesn't have, and forwards the details of the order to the wholesaler or supplier to fulfill. It means that the merchant doesn't need to have inventory of the products. When an order is made, he reaches out to the supplier who delivers the product to the buyer, gets paid, and then pays the merchant a commission.

I call my system modified cause when an order is made, I do the shipping instead of my supplier. The advantage is that I don't need to have the products in stock before putting them on sale. Once orders are made, I reach out to the supplier, get his money to him, and he in turn gets the items to me. This saves me money since I don't have to hold stock, and no need of securing a storage space. There will be cases when you need to hold stock of some items, especially those that may go out of stock anytime.

6. The high rate of turnover monthly - This was the exclusive enjoyment of the old policy, where you have to make supply for the Purchasing Order (PO) received from your sales. This was usually done twice weekly and you get paid within 24 - 48 hours after supplying. This gave the opportunity to turnover your investment twice weekly, and 8 times monthly.

Let's do a simple calculation of someone starting out with N100,000 and making a 10% profit on sales throughout the month

1st supply - N100,000 + 10,000 (10% interest) = N110,000
2nd supply - N110,000 + 11,000 (10% interest) = N121,000
3rd supply - N121,000 + 12,100 (10% interest) = N133,100
4th supply - N133,100 + 13,310 (10% interest) = N146,410
5th supply - N146,410 + 14,641 (10% interest) = N161,051
6th supply - N161,051 + 16,105 (10% interest) = N177,156
7th supply - N177,156 + 17,715 (10% interest) = N194,871
8th supply - N194,871 + 19,487 (10% interest) = N214,358

The result gives you more than 100% profit just for selling at 10% profit. It gets higher if you mark up higher. Especially if you're the first to introduce that product.

7. Quick response to orders made - The main reason for cancellation of orders on Dealdey is inability to deliver the products on time. You have to be very fast in responding, especially if you're running the type of modified dropshipping method I mentioned earlier.

These are my main strategies, which have proven to be successful. Unfortunately, the change in policy has made a number of these strategies impossible to deploy. Konga seems to be the next best thing for these, because they allow for self fulfillment and cash handling by the merchant

bobojoshua:
Can someone who resides outside lagos sell on dealdey?

Yea, it's possible. As long as you know how to source your products, and deliver when orders are placed. However, having the assistance of someone on ground would reduce the stress of commuting inter-state.

babaloke:
I have my money trapped with them since 13th January,and they havent really given reasonable explanations for the delayed payment.
I think they should include self fulfiment option like konga did.
If not,they may loose credibility and thats one asset you cannot toy with in the nigerian e commerce market

Fortunately for buyers, they aren't aware of delayed payment by Dealdey towards to sellers.

musicboy:
@dealfinder, quick one, please how do one sell on jumia. I mean the procedure?

I'm assuming you're already signed up as a merchant.

You upload your products and after approval goes live. Once an order is made on your store, you process it and print out shipping mandate for onward delivery to their closest warehouse to you.

Jumia will handle the rest

While preparing my next post for this thread, I got a mail from Dealdey on one of my accounts. The contents of the mail is regrettably disheartening

The implication is that those who had their orders delivered in January would get the proceeds of the sales not less than 5 weeks from when the product was delivered to the buyer.

" We are having some technical challenges with our Payment Reconciliation Platforms and we want to assure you that we are working tirelessly to resolve these issues.

Currently, all payments are manually managed and this has led to the delay and backlog in our processing time.

Complete restoration of automated payments would be effected from 29-02-2016 and normal payment cycles should commence."

Nevertheless, I'm obligated to complete this thread. But wanna serve a Caveat here that dealings with Dealdey should be based on your own discretion.

As for me, I've concluded plans on a more reliable solution.

will259:
it seems that lately Dealdey takes forever for payouts ,

this is really affecting my turn over rate.

@DealFinder any heads up

I have to apologize for the response I gave earlier concerning late payment.

There seems to be an issue with Dealdey and payment.

will259:
it seems that lately Dealdey takes forever for payouts ,

this is really affecting my turn over rate.

@DealFinder any heads up

Certain banks receive payment earlier. This is actually no fault of anyone.

Also, current accounts receive payment earlier than savings

It's obvious that most of the comments made are by those who have experience with selling online. There's actually nothing majorly difficult with setting up and running a store on any of the online platforms. Even running your own E-commerce platform, it's just that you have more challenges to cope with.

There are lots of online platforms, most people are familiar with them. Even as I write, new platforms are springing forth. But I particularly use just 4 of them, though not frequently. This is my list of best 4

1. Konga
2. Jumia
3. Kaymu
4. Dealdey

Konga offers marketplace and allows you to sell on their platform. The unique thing about Konga is that they allow self fulfillment. I use this a lot. Reason? When an order is made from your store, you 2 options, either you drop off at any of their K-express locations, or you ship directly to the buyer (self fulfillment)

If you ship through Konga, there's a 7-day return back policy in place. This means Konga holds on to the money paid for your product for 7 days, and only pays the money into your wallet if there's no complaint from the buyer. You can then request a pay out from your wallet into your bank account, and this takes anything from 2 working days for the money to hit your account.

For self fulfillment, you ship yourself, most often through a delivery company. They deliver to the buyer, pick up the money and pay into your bank account. This can take anything from 2 days to 4 days from the time you ship to when you get your money. Of course, with self fulfillment, Konga expects you to remit the commission on the item bought to them. I use this option more because it takes between 2 days to 4 days for me to get payment for my product, as against 9 days to 2 or 3 weeks (7 day return back policy and the time it takes from the date of payout request and when the money hits your account). The downside to this is that most delivery companies only deliver within Lagos.

Jumia also allows you sell. But no provision of self fulfillment. The good side to Jumia is that there are lots of orders from it. Though they also have lots of returned and cancelled orders. The major advantage is that you can mark up your products very well, and still remain competitive on this platform. They pay weekly, which is good news for those merchants want their money paid asap. Though there can be issues of over due payment.

Kaymu offers opportunity for you to sell on their platform. You get orders, and fulfill yourself. However, you're expected to remit their commission back to them, otherwise you would be penalized.

Dealdey is a deal site that offers the most attractive prices for items sold. Dealdey recently started allowing for self fulfillment, but you don't pick up the money directly because it's prepaid. The money is held by Dealdey for 7 days (return back policy) and after then paid into your wallet. I sell mostly on this platform for reasons I'm disclosing on this platform.

Making the most of your online sales depends on being able to achieve a healthy mix on these platforms. Some items sell better on certain platforms, and from their modus operandi, there are benefits unique to each of them.

I'll profile Dealdey next

iMerchant:
#Smiles.

Like I said I am here to just read comments.

You need not show or tell us your store, I already know it.

Your Konga Store is on Vacation.

The DealDey store start with O and you also have another moniker on Nairaland that started with F.

Ciao

Impressive. Did I also state in any of my earlier posts that I have clients?

I didn't add details of their sales in this thread. Strictly my store.

From my first post, it's obvious that at least 92 million Nigerians have used their devices (computer, laptop, tablet, phone) to access the internet at least once within the past 12 months. These are people who are able to manage their way around the internet.

Among these people are those who have made at least one online purchase in the last 12 months. They have bought products/ services found online, and have paid either online, using digital currencies, or using direct bank deposit.

The important thing is that they have initiated, and actually concluded purchase through the internet. They do not all have good shopping experiences, even with issues like late delivery, wrong model or colour of product supplied etc, most online shoppers believe that there is still a lot of room for improvement.

Yet again, read below excerpts from my research on online shoppers

" While Nigerians grapple with falling oil prices, dwindling Naira, and market losses in the Nigerian Stock Exchange (NSE), there still exists amazing opportunities in E-commerce.

Statistics show that online business has lots of potentials for those who are willing and able. Nigeria is relatively new to online business transactions (popularly known as Electronic commerce, or E-commerce for short). With major players like Jumia, Konga, Dealdey and Kaymu springing up within the past 4 years.

As at the end of June 2014, about 63% of Nigerian internet users (over 40 million) had bought at least one item online, with 60% indicating that they had used their mobile phones for the purchases.

The Nigerian E-commerce market has a potential of $10 billion and about 300,000 orders daily. This was disclosed by Dr Omobola Johnson, the former minister of Communications technology.

A number of factors are responsible for the explosive growth in online transactions in Nigeria, prominent are:

1. Increasing number of internet users (about 92.2 million)
2. Fast growing middle class
3. Convenience of shopping online and having it delivered to your home
4. Ability to compare prices among competing E-commerce platforms and merchants
5. The use of social media to drive E-commerce participation
6. Access to broadband internet at more affordable cost
7. Increase in security of online payment systems
8. Introduction of CoD (Cash on Delivery) by most E-commerce platforms

The past 2 years has witnessed increasing number of E-commerce stores springing up, with some of them being market places that allow for multiple merchant or vendors. Others are dedicated stores exclusively for a single merchant to sell its products.

However, the potentials of E-commerce, increasing number of buyers, and favourable factors, have shown that the market is yet to be fully reached. Especially if you consider the logistics involved in reaching the extreme parts of the country (North East & North West of Nigeria).

There is room for everyone in this sector of business, especially those who can distinguish themselves from the crowd."

We currently have about 40 million shoppers, and to the best of my knowledge, these people are yet to be fully serviced.

Next post we'll look at some prominent online stores

EnterPRO:
final question sir :

is your N1m sales revenue before or after their new policy?

the answer won't really affect the value of what you have to offer

will just help put things in perspective.

thanks

There's also room for more questions, and suggestions too. Believe it or not, lots of companies selling their own brands find selling online very unattractive, because of their experiences.

For me, sourcing your products is the single most important aspect of selling. Whether for old or new policy, if properly done can keep the merchant's head well above water.

EnterPRO:
final question sir :
is your N1m sales revenue before or after their new policy?
the answer won't really affect the value of what you have to offer
will just help put things in perspective.
thanks

Before the new policy.
I resumed selling 2 weeks ago, and I'm doing quite well right now.

EnterPRO:
final question sir :
is your N1m sales revenue before or after their new policy?
the answer won't really affect the value of what you have to offer
will just help put things in perspective.
thanks

Before the new policy.
I resumed selling 2 weeks ago, and I'm doing quite well right now.

2sex:
Okay. I will be waiting to read them in details in next 9 days. But one question you didn't answer is how do you know what to buy that will in turn sell faster. Most people buy goods and can't sell them because people are not buying or because the market is already saturated. How do you handle this bottleneck problem?

CallaMessager site has been hacked bro

I use a hybrid system in dealing with products. I stock quite a few, while I buy directly from the importers or wholesalers when I have orders that aren't in stock.

For sourcing products to sell, its isn't determined only by high selling products. There are other things I factor. Some of which are the best selling categories, genders that shop more, price ranges that people are willing to pay for items

EnterPRO:
OK sir. pls ride on.

the reason I asked is because I know things on DealDey have slowed in the past few months.

I'm sure your tips will be beneficial to many.

There were certain changes brought about by a new policy there. I call it a policy based on self preservation.

However, as an entrepreneur, one should see opportunities even in adversities. Yes, sales dropped, and quite a number of existing merchants dropped too. I had to stop selling for a couple of weeks in order to understand the new rules before resumption of selling on the platform.

From my analysis, there are a number of new opportunities. One of which is that Dealdey reduced their commission on each sale you make

2sex:
Well, I am aware of people make that kind of money selling on DealDEY but if you would be willing to answer these questions without holding anything back, then I would say you are a rare being just like ymodulus.

Now let me ask you this question... Note, it's not a must that you answer since you are doing this out of freewill and not getting paid. But then, not answer would only mean that the purpose of this thread has been defeated or that you had other agenda, at least that's what would be read.

1. How do you research HOT, FAST, IN DEMAND products, something that will sell pretty fast... That is, what gives you the confidence that what you are about to import will sell, what are your thought process when searching for these products? we all know virtually everyone buys from.aliexpress, 1688

2. When you receive orders, how do you send it to the buyer, what is the name of the logistic company that you use or would recommend? Does distance of the buyer affect you? Does DealDey have drop off point like Jumia and co?

3. How do you get goods at cheaper rate? Are you a member of group buying and splitting?

I'll give you very simplistic answers to your questions. The reason is that they will be dealt with within the next few days. I intend to disclose what I have in mind within the next 9 days, and then we can continue with questions and answers.

1. I do not import my products. I buy directly from importers. This is because the cash conversion period is faster than importing. It simply means I get my returns faster and it enables me to achieve a greater number of TURNOVER

2. I use Call a Messenger, its quite efficient for my deliveries around Lagos. However, their delivery is within Lagos only. For larger items or orders outside Lagos, I use FedEx.

3. I'm not a member of a buying or splitting group. Never tried them, but I could be interested.

iMerchant:
I am here to read comments.

To learn how to make more money and to also know the op store name on these platforms.

I won't disclose my store name on this thread. One of the major areas I'll focus on is sourcing your products. I will show from experience the things to look out for when sourcing products to sell.

Showing my store will also show my products and I prefer those interested in selling online to go for their own products because Dealdey tends to favour those who sell unique products, or relatively uncommon ones. However, if what you seek is evidence, I'll address it.

kennyman2000:
Me too just dey laugh here 2sex and Enterpro You see our nairalander people. When they see a thread thats all abt money, they wont bother to ask question. Na to dey drop email and saying am interested. Thats why i dont pity them when some of them are scammed. Wondering how they cant use their head. How would someone say he's making #1million monthly sales on dealdey of all places! Ohhh boy!

I'm not selling anything here, neither am I soliciting for training here. That's why I'm not obliged to post my bank statement here.

However, there are other people I know who make more than a million in sales too. That's the only business they do.

My advice is to approach it as a full time business.

EnterPRO:
N1m revenue or profit?

Revenue. The topic says over N1 million in sales. The amazing thing is that this was achieved with a principal of about N200k.

Of course I didn't plan to let the cat out of the bag so early.

Selling products and services online have become possible due to the proliferation of online stores and platforms. Prominent among them are Jumia, Konga, Kaymu and Dealdey.

Being active on these platforms now for close to a year, and I can confidently say that anyone can make a reasonable income selling on any, or all of them. You just need to do your home work, and I'm sure you'll be making monthly incomes that compare with those working in multinationals. Yes, I can boldly state this cause this is my experience.

Before I go into the nitty gritty, I'll like to include a piece of statistics I discovered while doing research for a client.

' Nigerian Internet Usage Stats

Nigeria is currently ranked 7th in the number of internet users globally. With over 92.6 million of its population having internet access (about 51.1% of its over 182 million population), there is still room for growth and increased internet penetration.

This is in line with the projection of Nigeria's Ministry of Information and Communications (as at June 2015), that the country would have 76% broadband internet penetration by 2020.

A significant number of these internet users are teenagers and those under the age of 30. Fuelled by increased accessibility and affordability of internet provided by Mobile Network providers, internet enabled mobile phones account for about 80% of internet access devices.

With about 49% of Nigerians without internet access, there's still massive growth potential. Especially if you consider that within 2000 and 2015, the country experienced 46,250% growth in internet users.

NB
Internet users are defined as persons who accessed the internet in the last 12 months from any device, including mobile phones.'

We're looking at a potential market of about 92.6 million people, ie the total number of internet users in Nigeria.

I'll pause for you to take in this information before continuing with the next post

Teempakguy:
android nuts.

Could be correct

Google seems to have adopted a tradition in naming their Android versions. The latest version is usually the next alphabet to the previous release.

Check out the existing Android versions



Cupcake (1.5)
Donut (1.6)
Eclair (2.0–2.1)
Froyo (2.2–2.2.3)
Gingerbread (2.3–2.3.7)
Honeycomb (3.0–3.2.6)[a]
Ice Cream Sandwich (4.0–4.0.4)
Jelly Bean (4.1–4.3.1)
KitKat (4.4–4.4.4, 4.4W–4.4W.2)
Lollipop (5.0–5.1.1)
Marshmallow (6.0–6.0.1)
N... ?


Now that you already have a clue on the first letter, predict it and win N1,000 airtime for any mobile network of your choice. First correct answer wins