How to Price Your Products for the Nigerian Market

The most common pricing mistake in Nigerian ecommerce is not being too expensive. It is being profitable on paper and not in the bank.

Count every cost first

• What you paid for the item.
• Delivery to you, and delivery to the customer if you absorb it.
• Payment processing.
• Packaging.
• The share of items lost, damaged or returned.

That last one is the one everybody forgets, and it is the one that decides whether you are making money.

Then set the price

Work out your true cost per sale, add the margin you need, and check it against what similar sellers charge. If you are far below them, you are probably missing a cost.

Do not compete on price alone

There is always someone willing to go lower and go out of business. Compete on delivery speed, honest photographs, and answering messages quickly.

Build in room to discount

If your price has no margin, you can never run a promotion. Price so that a discount is a decision rather than a loss.