What’s Hot

E-commerce And Retail Business In Nigeria. Experience,challenges & Prospect.

In the recent time, retail industry has experienced a significant growth in the Nigerian economy, thanks to e-commerce and other online business and services. Arguably, Nigeria has the most internet penetration and usage in Africa; but as it is, Nigerians are not optimizing the merits that come with internet. Though we can partially blame it on the high cost of internet in this part of the world, amidst other setbacks.

E-commerce has been the major sector that has boosted retail industry In Nigeria, and the growth has no projection of nosediving. There is a huge determining factor to the growth of e-commerce and retailing in Nigeria, and that is the internet and its usage. For the benefit of those who don't really understand what e-retail or e-commerce means, permit me to give a simple definition. E-commerce is simply the buying and selling of goods and services through the electronic channel (internet). The word "e" literally means electronic or virtual in the computer world. For example: e-mail, e-store, e-medical, e-banking etc.

The main purpose of writing this piece is to discuss issues affecting e-retailers, e-store owners and generally e-business in Nigeria. I will highlight some challenges from my own perspective and experience. I know some of us will have similar experience and other unique encounters that are worth sharing, so let us learn from each other's experience to grow together. smiley

WINDOW TO THE WORLD
Imagine your shop in a small community in Nigeria and buyers who are interested in your goods are calling from other major cities of the world ( From Lagos, Accra, J'bourg,New York, London, Milan to Adelaide cheesy Oooh wow! ) It means your business was born in Africa but it became a citizen of the world. cool

This is the experience I have when I started my e-shop ( The first e-store in Abeokuta that sells phones & technology gadgets ). Yes, your e-store can open your window to the world.


MOBILE BUSINESS
I carry my business along wherever I go. cheesy Yes Ooo, because my shop is on the social media and I can do my business in any part of the world, provided I have access to the internet. If you have sold goods to customers outside your location, please come and share the experince with us. The first sale I made outside my locality was delivered to Ibadan, Oyo State and I met the buyer on Twitter. My location when the guy followed me on Twitter: Lagos. My location when I followed back: Abeokuta. My location when we struck a deal: Abeokuta. Location of the buyer: Ibadan. Yet, the deal was successful. smiley and order was delivered to Ibadan.
He has became a very close friend since then. ( It was payment on delivery mode).


24-7 OPEN DOOR.
My e-store opens 24hours a day, 7 days a week. Even when It is practically impossible to attend to inquiries for all the whole days of the week and round the clock, my potential customers are free to check my displayed goods and read about my business on my fan page, they are also free to do window shopping till I attend to questions and inquiries from them. grin. (Though my page is 97% + responsive. So, you will always get response within a couple of minutes)

At this juncture, I have to cut the numerous advantages of the e-retail business and share some of the major challenges I have faced and those I am still facing and managing. smiley


CHALLENGES

Trust issue: I have lost a great number deals when my store was at infant stage, because potential customers a scared of losing their hard earned money through online shopping. Then, the only payment option available for my small business was advance payment. Buyers were afraid of paying into personal bank accounts. ( and I no blame dem, na as country be, even outside Africa, e dey happen grin ). Since I don't have any other platform that could offer other payment options, I had to cut the scope of coverage area to my locality, which was not enough for the dram I have for the business.

I had to plead to buyers who have already done business with me to allow me reference their name and the deal on my page, share photos of conversation while striking the deal and put their reviews/feedback on my page or their pages. The fact that I sell quality goods, deliver on time and try as much as possible to make full description of the products they wanted to buy gave me an edge to have positive feedback from them and consequently led to numerous word of mouth referrals.

This is how I managed to tackle the challenge of distrust;

1. I have a very good reputation and great number of followership on my personal social media page, so I referenced my personal page to my business fan page, which gives potential buyers a level of guarantee that they are dealing with a people person and a traceable firm.

2. I deal with only authentic products and I tried to be open as much as possible in all dealings. I state clearly all conditions attached to the goods i.e if it's new or used, US or China, Imported or Locally made, Water resistant or not. Then I ask customers from review/feedbacks to be posted on my wall or share and also share with their friends.

3. I offered payment on delivery plus free delivery to buyers in areas closer to my location.

4. I opened a corporate account with reputable new generation banks. ( You need a registered company/business name to do this )

5. I negotiated with some Courier firms for escrow service or something close to it.

6. I shared each successful orders placed and delivered on my personal social media page and fan page.


When I started offering free delivery + payment on delivery in my locality, buyers from other cities and states who liked my products, base on quality, affordability and value for money started pressurizing me to arrange for delivery coverage to their cities and also look into alternative payment options for buyers outside my city. cheesy

Quickly and smartly, I got my corporate (business account )account activated. After opening a corporate account, the first 2 orders came outside my region, one from North East (Plateau State ) the other from South East ( Aba,Abia State ) Funny enough, the first order outside my city came from a Nairalander and he paid into my personal account( not even my corporate account)

Yet, some buyers(outside my city) are doubting Thomas, despite the fact that I offered payment into a corporate account, they rejected grin and on my own side, neither can I send goods outside my city without payment. sad So, I lost some pretty cool deals before I set out for deals with courier companies. Though, I have not utilized the option, but it is open to me. I recently opened a store on konga, but we all not it comes with some sacrifices; anyway I have to take these options before I step up my e-retail business, from using social media and other e-commerce platform to launching my own e-commerce store. ( God willing )

Now, I have got some mails and orders to attend to, I am sorry I have to take a leave for now. Please keep a tab on this post as I will subsequently write more challenges I have faced and those I am still facing; and I will definitely write how I tackle and mitigate them.
Have a profitable day! smiley

MODIFIED.
Lalasticlala I would be grateful if this post could be shared on the FP to reach other e-store owners on NL so as to share experience and learn from one another. thank you

0 comments: