Ecommerce in Nigeria has had exponential growth, one of the reasons for this growth was the pandemic. To give us an idea, according to International Trade Administration, the current e-commerce spending  in Nigeria is expected to make $12 billion dollars. 

This means there’s a massive growth when compared to what it used to be. Despite these data, which speak of the development that this sector has had, there are users who have not managed to put aside their fears of making purchases online.

As it is, two reasons that can motivate Nigerian users who still do not buy online to do so are: security and payment methods. Regarding payment methods, they indicate that more payment methods be offered and secondly, more secure payment methods.

In this sense, there are currently different options, one of the alternatives is payment on delivery, have you thought about including it in your ecommerce? Do you know how it works?

We leave you everything you need to know about this form of payment.


What is cash on delivery?


Payment on delivery in Nigeria is one of the alternatives that users who buy online can have when purchasing a product through the internet. This is, as the name implies, a way to pay for the product or products that have been purchased up to the time they receive it.

Why do users choose this option? Some of the reasons may be:

  • They are suspicious of e-commerce fraud and do not receive their purchase.
  • They do not trust to use their cards to shop online
  • They do not have the forms of payment offered by electronic commerce.
  • They want to make sure that they receive what they bought and that it is in good condition.
In general, payment on delivery in Nigeria is usually done so that final consumers can see that the product they receive fulfills what it promises. The payment method depends on the sending merchant.

Cash on delivery: advantages and disadvantages

This payment alternative for online stores has elements for and against, let’s start with the positive points:

Flexible and secure payment method

The biggest benefit is the ability to pay until you have the item in your hands. For users, it is very attractive because it greatly reduces the possibility of fraud, losing their money or not receiving what they were expecting.

This way of paying allows the customer to check at the time he receives if everything is correct with him and if not, it is not necessary to pay and it can be returned.
Finally, for users who are wary of leaving their financial or card details, it is not necessary to do so to make a purchase.

You don’t depend on cards

Although there are different alternatives in payment gateways, which are not necessarily by card, most of the options always focus on making payments in this way, whether credit or debit.

With the payment on delivery you do not depend on using them to be able to buy, since it is possible, once you receive the product, to make the payment in cash.

Some of the disadvantages of cash on delivery are:


For ecommerce, this form of payment can mean losses and also fraud, as there is no way to authenticate customer information. In the case of losses, they mainly occur when the customer returns the product without paying for it.

More expensive

Offering this payment method requires different logistics, so the parcels that offer these alternatives charge an additional amount. If this cost is passed on to customers it can make your online store uncompetitive and if the cost is absorbed by the company it can make it unprofitable.

Now you know one more option that you can offer your customers to make their payments in your ecommerce, during your consideration, take into account the advantages and disadvantages to know if it is really a good alternative for you.