Online shopping is becoming one of the biggest trends in Nigeria, with reports stating that it is the 8th country in the world with the highest number of internet users. Although this trend comes with a number of advantages for a lot of users, there are still a number of reservations when it comes to e-shopping.
Challenges facing ecommerce in Nigeria include the cost of delivery, goods not be delivered or not been delivered on time, the fear of credit card details being compromised and of course the biggest one of all- scammers pretending to be legitimate online sellers- a fraudulent act that has caused far too many Nigerians to become victims of cybercrime.
Nigeria’s LockMyCash might just be the answer to that problem- it is an online escrow service that protects the interest of both the seller and the buyer, thereby minimizing the risk of fraud during the online transactions.
The service acts as a third party that holds payments from a buyer and doesn’t release it to the seller until the buyer is satisfied with the purchase. Essentially, it prevents a case where any of the parties feels dissatisfied at the end of a transaction.
Users create transactions, either as a buyer or seller, and fill in the necessary information regarding that transaction. This includes the name and description of the item, phone number and email address of the other party involved, cost of transaction, transaction and inspection period, and who pays the fee charged by LockMyCash.
After the buyer receives the item, they are expected to inspect it within the period that was agreed and they state if they are pleased or not. If they are, they buyer gets paid. If they aren’t, they’re to return the item and get a refund. LockMyCash charges a fee for every transaction, prices vary according to the value of the product. They charge between N200 and N5000.
According to data from the Africa Development Bank, consumption on the continent rose to more than $1 trillion in 2012, from $364 million in 2000, an annual rate of growth of 10.7%. With the increasing growth of internet use, some of this spending is starting to happen online. With 50% of the continent expected to have access to the internet by 2025, online shopping could account for 10% of retail sales, or $75 billion.