Most global ecommerce businesses outsource customer deliveries. The process depends on standardized addresses, reliable couriers, predictable delivery windows, and successful online checkout.
Yet many African markets lack these pillars. This disconnect is apparent in the first fulfillment step.
Logistics in Africa
Informal, landmark addresses
Automated routing software is ineffective when a driver relies on directions like “turn left at the blue gate after the mango tree.” A driver who makes 100 drops in New York may only complete 20 in Lagos or Nairobi because of the need for multiple phone calls to locate the customer.
This inefficiency inflates the cost per delivery by making it unfeasible to ship low-value products (such as a $5 t-shirt) without charging a delivery fee that equals or exceeds the item’s value.
Consumer skepticism
Delivery mistakes and failures are routine, eroding consumer trust. The problem is illustrated by the “What I ordered vs. what I got” trend, a viral meme originating in Nigeria, where consumers share photos of inferior goods.
The result is that many shoppers in Africa refuse to prepay. They demand cash on delivery and insist on inspecting the package at the doorstep before paying.
If they reject an item (due to poor quality or simple preference), merchants must pay for the return trip, doubling the logistics cost for zero revenue.
In Nigeria, consumers share “what I ordered vs. what I got” photos. This example is from TikTok.
Infrastructure gaps
Adding drivers or warehouses does not automatically reduce unit costs. Poor roads, limited city-to-city transport, and port congestion persist. The asset-heavy approach of owning trucks and distribution centers often becomes financially unsustainable.
Third-party couriers inherit these flaws
Merchants hoping to outsource these bottlenecks find that third-party logistics providers hit the same reality. The market limits a driver’s efficiency. Even if a courier has a flawless local network, delays in cargo clearance or urban gridlock often cascade downstream.
Local solutions
Local players are rewriting the rules by investing in systems that function effectively regardless of the environment. These include:
Human agent networks, which decentralize and delegate the “last mile” to locals. The local agent knows the neighborhood (solving the address problem), and the customer knows the agent (removing mistrust).
Jumia, Africa’s dominant marketplace, recently pivoted to this model with its JForce program that recruited over 30,000 localized agents in rural areas and smaller cities.
Informal fleets. Another emerging solution is building software layers that coordinate the millions of motorcycles and tuk-tuks (three-wheeled vehicles) on the road. This avoids the costs of fleet ownership while using vehicles better suited for navigating traffic.
In Lagos, for example, Kwik, an on-demand courier, deploys independent motorbike riders who can weave through traffic and gridlock that would trap a delivery van.
Similarly, Loop in South Africa develops software that dynamically adjusts routes for third-party fleets based on real-time traffic.
Kwik deploys motorbike riders in Lagos, Nigeria, who can weave through traffic and gridlock. Photo: Kwik.
Deliver in bulk to intermediaries. Delivering bulk goods to known, informal retailers rather than individuals allows couriers to drop 50 items at one location (a shop) rather than making 50 trips to customers’ houses.
Anticipate failures. Implementing “pre-failure” checks and contingency tools for drivers can prevent minor friction points from escalating to failed deliveries.
For example:
- “Cash floats” protect cash-on-delivery revenue. Delivery provider Glovo mandates that drivers carry pre-counted small bills, preventing failed deliveries from the inability to provide change.
- Verify first. Loop uses automated WhatsApp flows to contact the customer before the driver leaves the hub. If the customer does not confirm availability, the system flags the order to prevent a wasted trip.
The new playbook
Consumers in Africa are concentrated and accessible. The Big Four markets of Nigeria, Egypt, South Africa, and Kenya command nearly 70% of startup capital.
Yet capital alone cannot fix the ‘trust deficit’ or pave the roads. Ecommerce winners in Africa adapt to hyperlocal challenges for profitable selling.
