The verdict in three sentences
A profitable online store in Lagos launches with a setup budget of 150,000 to 800,000 NGN depending on tier, a target gross margin of 25 to 45 %, and native Paystack payment integration. Break-even sits between 100 and 200 orders per month once fixed costs are covered. What makes the difference is not the number of products but customer acquisition cost and repeat rate.
What launching really costs
The budget breaks down into build, initial stock, seed marketing and recurring fees. In Lagos, a Starter store runs around 400,000 NGN to build (catalogue up to 50 products, Paystack, order dashboard), while a simple e-commerce front can start lower.
| Launch item | Starter (NGN) | Growth (NGN) |
|---|---|---|
| Store build | 400,000 | 800,000 |
| Initial stock | 300,000 | 900,000 |
| Seed marketing (Meta Ads) | 100,000 | 250,000 |
| Hosting + domain (year) | 80,000 | 120,000 |
| Payment fees Paystack (per txn) | 1.5 % + fixed | 1.5 % + fixed |
| Estimated startup total | 880,000 | 2,070,000 |
These figures are a 2026 order of magnitude. Local rails like Paystack and bank transfer keep fees predictable, which protects margin on smaller baskets.
Margins and break-even
Profitability depends on average order value (AOV), gross margin and acquisition cost (CAC). With an AOV of 15,000 NGN and a 35 % margin, each order yields 5,250 NGN gross margin. You then absorb CAC and monthly fixed costs.
| Indicator | Lagos 2026 estimate |
|---|---|
| Average order value | 10,000-20,000 NGN |
| Target gross margin | 25-45 % |
| CAC via Meta Ads | 800-2,500 NGN |
| Monthly fixed costs | 150,000-350,000 NGN |
| Break-even | 100-200 orders/month |
| Target repeat rate (6 months) | 25-35 % |
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By comparison, the Dakar order of magnitude differs: build cost of 250,000 to 1,500,000 FCFA, Wave/Orange Money payment, CAC of 2,000 to 5,000 FCFA and break-even between 40 and 80 orders thanks to higher basket values.
Mini case study
Chidi, who runs a natural cosmetics store in Lagos, launches on Growth. Fixed costs: 250,000 NGN/month. AOV: 16,000 NGN, margin 38 %, i.e. 6,080 NGN margin per order. After an average CAC of 1,800 NGN, 4,280 NGN net remains per order. To cover fixed costs, Chidi needs 250,000 / 4,280 = 59 orders per month. By month 4, with 150 orders and 30 % repeat rate, he nets roughly 392,000 NGN monthly profit.
FAQ
What is the minimum realistic budget? Plan at least 880,000 NGN on Starter all-in (build, stock, seed marketing). Below that, stock or ads are too thin to reach the 100-order break-even.
Paystack or bank transfer: which to favour? Offer both. Paystack drives card and mobile volume with predictable fees, while transfer captures customers who avoid cards.
How long until profitability? With proper seed budget, expect 3 to 5 months to cross the 100 to 200 orders/month break-even steadily.
Do I need many products? No. 20 to 40 well-chosen, well-photographed items convert better than a 200-product catalogue that is poorly presented.
Let's talk about your project. We scope your store and a 6-month projection within 48 hours. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
