Starting an e-commerce business in Nigeria can be both challenging and rewarding. I founded Basics Lagos, a Nigerian activewear brand, because I saw a gap in the market for quality activewear. While I began ideating in 2020 during COVID, our proper launch wasn’t until summer 2021, with things really picking up in 2022. Here’s my experience, insights, and some actionable tips for aspiring e-commerce entrepreneurs in Nigeria.
Finding Inspiration and a Niche
Inspiration often comes from what you know and need yourself. For me, my interest in wellness and the lack of quality activewear in the Nigerian market drove me to create my own brand. It all started with a simple pair of brown ribbed bike shorts, which felt like a small beginning but quickly turned into something much larger.
Tip: Look for gaps in the market. Sometimes, what’s missing in your life could resonate with a much larger audience.
Navigating Unique Nigerian Challenges
Setting up an e-commerce business in Nigeria comes with unique challenges, such as the lack of readily available information on business processes. While the information is out there, knowing where to look can be tricky. Beyond that, Nigeria’s infrastructure for shipping and logistics isn’t as seamless as it is in other countries. So, I had to build my own network of trusted contacts and create a structure from scratch.
Tip: Start by building a strong network of reliable partners for logistics, shipping, and more. Having trustworthy people around you is critical.
Market Research and Planning: Keep It Simple
Understanding my target audience was relatively easy because it was people like me, my friends, and family. If you don’t have a close circle for feedback, social media platforms like Instagram and TikTok can be incredibly useful for researching demand. Studying your competition or conducting surveys is also helpful for validating your product-market fit.
Tip: Social media can be a goldmine for market research. Explore hashtags, engage with followers, and study your competitors’ engagement to understand your target audience.
Handling Business Registration and Legalities
Registering a business in Nigeria can be complex. I found that the best approach was to hire a lawyer who specializes in this area, as there are a few legal firms (like QuickLaw) that handle business registrations efficiently. Some digital banks, such as Sparkle and Kuda, also offer business registration support if you set up a business account with them.
Tip: Use a professional for your business registration. It’s worth the investment to get it right, as errors in registration can lead to complications later on.
Setting Up the Online Store: Shopify for the Win
For ease and affordability, I went with Shopify, which I highly recommend for new e-commerce businesses. It’s the simplest and most budget-friendly option, and it’s easy to set up. If you’re unfamiliar with digital tools, platforms like Fiverr or Upwork have affordable experts who can help you get started.
Tip: Don’t overcomplicate it—Shopify is straightforward, scalable, and user-friendly. Consider outsourcing the setup if you’re short on time or expertise.
Payment Processors and Logistics
I use Paystack as my payment processor, but Flutterwave is another solid option in Nigeria. For logistics, I rely on CityExpress for deliveries within Lagos and DHL for orders outside Lagos and internationally. The only hurdle has been the manual process of scheduling deliveries, but I’m on the lookout for a logistics company that can sync directly with my Shopify backend to streamline things.
Tip: Test your logistics partners and payment processors early on. They play a huge role in customer satisfaction, so reliability is key.
Marketing Strategy: Finding What Works
To build an audience, I relied heavily on SEO, Instagram ads, and organic content. Community events, like yoga sessions and pop-ups, and collaborations with influencers have also been effective. Pop-ups and trade fairs have been especially important in Nigeria, where face-to-face interaction builds trust.
Tip: Invest time in in-person marketing like pop-ups and fairs. Nigerian customers often appreciate seeing and feeling the product firsthand.
Funding and Financial Planning
I initially funded Basics Lagos with my savings and some family support. Later, I secured an import finance loan of ₦10 million, but I’ve primarily reinvested profits back into the business. Keeping finances lean has been crucial; I manage costs by asking friends to model for me or by utilizing free event spaces when possible.
Tip: Stay lean—do as much as you can yourself and leverage your personal network. Also, hire someone to handle your finances if it’s not your strength.
Overcoming Major Challenges
Infrastructure limitations and currency fluctuations are some of the biggest hurdles. Since we don’t have local manufacturing options for activewear, I manufacture in China and deal with the financial strain of currency changes. Nigerian customs is another challenge, but these issues have taught me creativity and resilience.
Tip: Be prepared to face infrastructure and currency challenges. Have a clear process for each aspect of your operations and think ahead about potential obstacles.
Key Advice for Aspiring Entrepreneurs
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Just Start: There are so many untapped opportunities in Nigeria’s market. Don’t wait for perfect conditions—start with what you have.
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Build Trust: Nigerian customers are wary of online scams, so stellar customer service and transparent policies (like refunds) are essential.
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Focus on Operations: Streamline your processes and automate where possible. This will help you scale and reduce daily operational stress as you grow.
Starting an e-commerce business in Nigeria isn’t always straightforward, but with creativity, a solid network, and resourcefulness, it’s possible to build a brand that resonates with your target market. Basics Lagos has been a journey of learning, adapting, and growing—and I hope these insights can help you start yours with confidence!