E-Commerce Profit Calculator

Jumia charges sellers 10–15% commission depending on category, plus ₦100–₦500 per order handling fee. Konga charges 8–12%. Jiji and Facebook Marketplace are free but require you to handle your own logistics. WhatsApp/Instagram selling has no platform fee but requires trust-building.

For physical products in Nigeria, a net margin of 15–30% is generally healthy. Fashion items can achieve 40–60%. Electronics typically 5–15%. If your margin is below 10%, you are barely breaking even once you factor in hidden costs like bad debt, returns, and losses.

Start with your cost price, add all fees (platform, shipping, packaging), then add your desired profit margin. A common formula: Selling Price = Cost ÷ (1 − desired margin %). For a 30% margin: if cost is ₦5,000, selling price should be ₦5,000 ÷ 0.70 = ₦7,143.

Common overlooked costs: bank transfer fees and POS charges, product returns and refunds (budget 3–8%), damaged goods in transit, customer acquisition costs (ads), time cost, VAT if turnover exceeds ₦25M, and bad debts from pay-on-delivery defaults.

It can be, but you need sufficient volume and good margins. Jumia's platform fees, logistics, and return rates eat into profits. Many successful Jumia sellers have exclusive deals on fast-moving consumer goods, electronics accessories, or private-label products where margins are higher.