E-Commerce in Nigeria: Mastering Payments, Logistics & Trust

Don't build a website if you don't have traffic.

1. Marketplaces (Jumia, Konga, Jiji):
- Pros: They bring the customers. Trust is already established.
- Cons: High commissions (up to 15%). You compete with 1,000 other sellers on price. You don't own the customer data.

2. Social Commerce (IG/WhatsApp + Payment Link):
- Best for: Beginners.
- Setup: Use a Paystack/Flutterwave Storefront. It's free. Upload photos, get a link, put it in your bio.

3. Own Website (Shopify/WooCommerce):
- Pros: You own the brand. No competition on your page.
- Cons: You must drive your own traffic (Ads). Monthly fees ($25+ for Shopify).

Gone are the days of "Send account number". Use a gateway to look professional.

Paystack vs. Flutterwave:
- Both charge 1.5% + ₦100 per local transaction.
- Paystack: Known for better success rates and simple interface. Owned by Stripe.
- Flutterwave: Better for international payments (collecting Dollars/Pounds).

Squad (by GTCo):
- Reliable and integrates deeply with GTBank. Good for USSD payments.

Settlement:
Usually T+1 (Next working day). Don't panic if money doesn't hit your account instantly.

You can have the best product, but if the dispatch rider is rude or late, you lose.

Interstate (Lagos to Abuja/PH):
- Reliable: GIG Logistics (GIGL). They have tracking and centers everywhere.
- Budget: Park loading (NURTW). Cheaper but risky. No insurance. Only use for non-fragile items.

Last Mile (Within the City):
- Aggregators: Use apps like Topship or Fez Delivery. They connect you to multiple bike riders.
- Dedicated Riders: Only hire your own bike if you have 10+ orders a day. Otherwise, the maintenance and police issues will kill your profit.

Customers fear scams. Sellers fear "I'm not around" returns.

The Compromise: "Delivery Fee First":
- Ask the customer to pay the delivery fee (e.g., ₦2,000) upfront to validate commitment.
- They pay the item cost on delivery.
- Why: If they refuse to pay ₦2,000, they were likely going to waste your time anyway.

Escrow Services:
- Use platforms like Vesicash. The customer pays Vesicash. You deliver. Vesicash releases money to you. Everyone is safe.

Earn in Dollars. Spend in Naira.

Shipping:
- Use DHL Express or FedEx. Yes, it's expensive (₦30k+ for a small package to USA), but it gets there in 3-5 days.
- Export Docs: You need an NXP form for large commercial exports, but for small B2C parcels, DHL handles the paperwork.

Packaging:
- African foodstuff must be dried and properly labeled. No leaking oil. Customs will destroy it.