The verdict in three sentences
As soon as 15 to 30 % of your revenue comes from the diaspora, you collect in USD or EUR while your costs are in NGN. The aggregator FX markup (1 to 2.5 %) and international card fees (~3.5 %) eat into margin, worsened by volatility. The fix: freeze the price in local currency and convert at checkout with a small safety margin, which can preserve ~5 % of margin.
The real cost of conversion (2026)
When a customer pays in USD or EUR, several fee layers stack up. Here are the 2026 orders of magnitude.
| Item | Estimated cost | On whom |
|---|---|---|
| Aggregator FX markup | 1 - 2.5 % | Merchant |
| International card fee | ~3.5 % | Merchant |
| NGN/USD spread (volatility) | +/- 8 % in 2025 | Exposed merchant |
| Foreign-currency payout | flat fee | Merchant |
| Psychological rounding | +2-5 % perceived | Neutral/gain |
A product at 30,000 NGN sold at 20 USD can lose 4 to 6 % of its value to conversion and card fees if pricing is not controlled.
Multi-currency display strategies
Not all approaches protect margin equally. A comparison.
| Strategy | Margin protection | Complexity | Customer experience |
|---|---|---|---|
| Frozen NGN price only | Low (customer calculates) | Low | Average for diaspora |
| Live conversion at checkout | High | Medium | Good |
| Frozen per-currency prices (manual) | Medium (drift risk) | Low | Good |
| Dynamic pricing + FX margin | Very high | High | Very good |
Dynamic pricing — converting in real time and adding a 1.5 to 2 % safety FX margin — is the most protective: it neutralises volatility while showing a clean price.
The Kolonell referral (apporteur d'affaires) program
Need a professional website?
Kolonell builds websites that attract clients, optimized for the Sénégalese market. Free quote in 2 minutes.
Do you know e-merchants or diaspora players selling internationally? Become a Kolonell referral partner and earn a commission on every project signed thanks to you. The rates are clear and recurring.
| Pole | Sale commission | Recurring |
|---|---|---|
| Showcase site | 15 % | + 5 % |
| E-commerce | 12 % | + 5 % |
| Marketplace | 10 % | per contract |
| Institutional | 8 % | per contract |
On a 2,000,000 FCFA e-commerce site, a referrer earns 240,000 FCFA immediately, plus a recurring cut on maintenance. One recommendation is enough to start.
Mini case study
Aminata sells crafts from Dakar; 25 % of her revenue (1,500,000 FCFA/month) comes from the European diaspora. Without FX management, she loses ~5 % on those sales, i.e. 75,000 FCFA/month. Moving to dynamic pricing with a 1.5 % FX margin, she recovers most of that loss: ~900,000 FCFA/year of preserved margin — without raising her locally displayed prices.
FAQ
Why freeze the price in local currency rather than USD? Because your costs are local. Freezing locally and converting at checkout protects your margin from exchange-rate swings instead of absorbing them on every order.
What FX markup is reasonable? A 1.5 to 2 % safety margin covers volatility without looking abusive. Beyond that, savvy customers compare and may feel overcharged.
Are international card fees avoidable? No, but also offering local transfer/mobile money for diaspora customers with a local account reduces the share of 3.5 % card payments.
How do I become a Kolonell referral partner? Refer a project: once signed, you earn your commission (12 % for e-commerce, 15 % for showcase sites) plus a recurring cut. Contact us to receive your tracking link.
Let's talk about your project. We set up a multi-currency checkout that protects your margin — and we welcome referral partners. 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.
