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5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by IbnIbrahim: 3:10pm On Feb 07, 2018
Let’s face the fact- we, human beings love shopping. Everybody enjoys new kinds of stuff - from shiny new shoes to the latest sophisticated gadgets. Who wouldn’t like an upgrade from iPhone 6 to iPhone 7? Or who wouldn’t want to wear that new design everyone's talking about?

Formerly, shopping is done physically. You’d have to go to the market (or boutique, supermarket, auto dealership) and buy what you need. You’ll also do a lot walking, sweating, and sometimes swearing (in some local tongue) over the price of goods.

Technology is, however, changing things. With the internet, you can now buy new stuff and have it delivered to your doorstep - at the push of a button on your iPhone 7.

As a result, e-commerce has evolved over the years globally, meeting people’s need effectively and efficiently. In the US and Europe, e-commerce is thriving and plays an important role in everyday life. However, this isn’t the case in Nigeria and most parts of Africa. These are the reasons why:


1. Low internet Penetration and network unavailability

This is a major problem all over Africa. Internet penetration isn’t at a stage that will favour e-commerce. Also, internet connection isn’t always available due to several reasons. How would you order for those hot pants on Jumia if you can’t even access the internet? This is killing business. For everybody.

2. Trust issues with Nigerians

There’s this thing among Africans- we don’t have the courage to trust each other, let alone internet companies. There’s a scepticism among online shoppers. Most people would hardly offer to pay for goods up front. We often opt to Pay on Delivery, and then send the messenger back, with one excuse or the other.

Apart from this, a larger percentage of Nigerians don’t trust e-commerce firms to deliver the goods they promised online. A beautiful red robe, when delivered could look like an ugly red apron, and this damages the trust between consumer and e-commerce firms, hindering the business from flourishing as it should.

3. Low Purchasing Power

Times are hard and the masses are complaining. The purchasing power of the average African man is low when compared with his American counterpart. The income of the average Nigerian doesn’t allow much allocation for shopping, either physical or online. A hungry man doesn’t look for money to shop online, his primary objective is to quench his hunger. Shopping will come afterwards- if there’s enough money left.

4. Unfavorable Business Climate/Government Regulations

It’s not easy to establish or run a business in Nigeria, and the World Bank can attest to this. According to Tony Elumelu (CEO, Heirs Holdings, Transcorp, UBA, etc) Nigerian laws are too stringent for businesses to run smoothly. There’s an enormous amount of trouble (and bureaucracies) to face when trying to register a business in Nigeria, and once that’s done, there’s a huge amount of tax to pay too.

Apart from these, the cost of running a business in Nigeria is unusually high. Expensive power and transportation costs have negative impacts on e-commerce businesses, making business hard and tardy.

5. Poor Infrastructure

Nigeria still lacks adequate infrastructure to ensure timely delivery of ordered packages. You could order for the latest Tecno tablet and longer than the stipulated time for it to arrive. At the moment delivery is efficient only in select places in Lagos, Abuja and Port Harcourt.


Until these issues are addressed, e-commerce won’t thrive in Nigeria or Africa as it should. It will require a considerable amount of cooperation between stakeholders, government and Nigerians for the business to flourish.


Lalasticlala
dominique

http://www.hotproforum.com/topic927.html

5 Likes

Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by stefanweeks: 3:13pm On Feb 07, 2018
True

3 Likes

Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by eezeribe(m): 5:10pm On Feb 07, 2018
I prefer shopping on Amazon and Aliexpress than Konga and Jumia...
We still have a long way to go in this country;we have not even started... We are still 'priming' our engines.

7 Likes

Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by Nobody: 6:00pm On Feb 07, 2018
Technology is, however, changing things. With the internet, you can now buy new stuff and have it delivered to your doorstep - at the push of a button on your iPhone 7.



The major cause is this up there

1 Like 1 Share

Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by wwwtortoise(m): 6:00pm On Feb 07, 2018
Naija hasn't got to that level just yet.
Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by Kobicove(m): 6:05pm On Feb 07, 2018
Here are my own analysis of the points OP raised

1. Low internet Penetration and network unavailability

Internet penetration rate is not that low anymore, the main issue has to do with maintenance of infrastructure to run e commerce


2. Trust issues with Nigerians

The legal process in most African countries are very slow. Apart from this there is little or no consumer protection in place hence consumers are usually hesitant when engaging in e-commerce.


3. Low Purchasing Power

Blame this on the poor state of most economies in Africa. Most people here can't even afford 2 meals in a day

There is also the problem of poor access to credit facilities


4. Unfavorable Business Climate/Government Regulations

Government policies in most African countries change as frequently as the wind changes direction.

In some instances adverse government policies are used to settle political scores so as to frustrate a perceived political foe


5. Poor Infrastructure

Infrastructure are non-existent.

Where they do exist they are poorly maintained

6 Likes 1 Share

Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by Doerstech(m): 6:07pm On Feb 07, 2018
3 and 5
Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by genius43(m): 6:08pm On Feb 07, 2018
Most of the e-commerce sites are not trustworthy, sometimes pricing is way out of place.

Till now most people prefer physical stores where their eyes can feast on the product before they buy.

5 Likes

Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by sunnysunny69(m): 6:09pm On Feb 07, 2018
We are 200 years behind in e-commerce, there is so much high level of street trading, Lagos is an example where between 2 or 3 houses there is a shop and then top it with people hawking in traffic then how many Nigerians are ready to enter their credit card details online to shop, Nigerians don't trust the online stores, online stores don't trust Nigerians credit cards. Delivery is another issue, in Europe especially online businesses depends on postal system because it's cheaper and guaranteed next day or 2, in Nigeria it's not so , delivery uses motorcycles and pay on delivery thereby increase the cost, risk of robbery or customer changing their mind on the spot upon seeing the goods.

2 Likes 1 Share

Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by designVATExcel: 6:11pm On Feb 07, 2018
Very on point.
Data is too damn expensive and some bad eggs have created general distrust

1 crucial one you forgot, lack of an efficient, affordable and reliable Postal system.

Nipost is trying, but if the government can increase their funding, online companies can use them for delivery.

2 Likes

Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by GavelSlam: 6:13pm On Feb 07, 2018
Trust.

Corruption is a Nigerian.

1 Like

Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by edoman2016: 6:16pm On Feb 07, 2018
The major reason for the failure of e-commerce businesses are their business model are not profitable. And any business that can not break even, it's a matter of time it will shut down.
Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by dogstyle007(m): 6:17pm On Feb 07, 2018
Nice
Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by folba(m): 6:18pm On Feb 07, 2018
Fraud- so many fake and fraudulent platforms posing as a genuine business

2 Likes

Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by teemy(m): 6:22pm On Feb 07, 2018
once we can start to receive paypal, lot's of folks would be able to earn dollars legally.
Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by delerx(m): 6:23pm On Feb 07, 2018
You can order for drugs on my site and I deliver to your doorstep
Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by Zealoy(m): 6:25pm On Feb 07, 2018
Some delivery/logistics company in Nigeria can even kill ur destiny join lol though am still making 6 figures through e-commerce. mini importation to be precise.
Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by frankmoney(m): 6:26pm On Feb 07, 2018
Two reasons ;Trust issues and poor customer service
Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by Silvermoney: 6:27pm On Feb 07, 2018
.

6 Likes 2 Shares

Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by BoboKush(m): 6:38pm On Feb 07, 2018
eezeribe:
I prefer shopping on Amazon and Aliexpress than Konga and Jumia...
We still have a long way to go in this country;we have not even started... We are still 'priming' our engines.

Aw long does it take aliexpress to deliver item
Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by Nutase: 6:47pm On Feb 07, 2018
419 everywhere.
Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by Nobody: 6:52pm On Feb 07, 2018
designVATExcel:
Very on point.
Data is too damn expensive and some bad eggs have created general distrust

1 crucial one you forgot, lack of an efficient, affordable and reliable Postal system.

Nipost is trying, but if the government can increase their funding, online companies can use them for delivery.


Just last week s package was sent from afonja state to far north.... It was received in 3"days so Nipost is fantastic not "tryin"

1 Like

Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by toxtimmy: 6:53pm On Feb 07, 2018
Nigerians... Baffles me that people still don't get it in Nigeria... No electricity no progress... Just like no water no fish.

1 Like

Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by Nobody: 6:54pm On Feb 07, 2018
Silvermoney:
I agree. I use both Jumia and Amazon affiliate marketing programs for two of my sites and the Jumia one is just laughable. You'd see 50 clicks and just one purchase. Meanwhile for the Amazon one, I typically get an average of 3 purchases per 10 clicks. I've even seen 10 clicks and 8 purchases, on Amazon.The same products, the same call to action with Jumia, but vastly different purchasing behaviour.

I guess most Nigerian Internet users are broke or unwilling to part with their money. It's a big problem.


What do u sell? Do u sell from Nigeria.. I have product and wish to c how I can place it in Amazon
Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by NnamdiN: 6:56pm On Feb 07, 2018
you forgot the stupid idiottts that abuse the whole thing because they pay on delivery...

Big ups to konga(zinox) for cancelling that shhit.

Jumia needs to man up and do the same, let the online space be left for serious people only.

2 Likes

Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by boringnigerian: 7:14pm On Feb 07, 2018
Kobicove:
Here are my own analysis of the points OP raised

1. Low internet Penetration and network unavailability

Internet penetration rate is not that low anymore, the main issue has to do with maintenance of infrastructure to run e commerce


2. Trust issues with Nigerians

The legal process in most African countries are very slow. Apart from this there is little or o consumer protection in place hence consumers are usually hesitant when engaging in e-commerce.


3. Low Purchasing Power

Blame this on the poor state of most economies in Africa. Most people here can't even afford 2 meals in a day

There is also the problem of poor access to credit facilities


4. Unfavorable Business Climate/Government Regulations

Government policies in most African countries change as frequently as the wind changes direction.

In some instances adverse government policies are used to settle political scores so as to frustrate a perceived political foe


5. Poor Infrastructure

Infrastructure are non-existent.

Where they do exist they are poorly maintained


Agree 502%
Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by Nobody: 7:23pm On Feb 07, 2018
It is because Nigeria is governed by analog government/politicians who are only good in playing politics with every good things.

Nigeria government and politicians don't want to develop their economies but are stealing from Nigerians to developing foreign countries. Are they not stupid

1 Like

Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by mpowa(m): 7:46pm On Feb 07, 2018
The major problem is infrastructure, almost every other problem can be managed.

1. Low Internet: In a city like Lagos, almost everyone can use internet now, we even watch videos, ecommerce don't need more internet than facebook or twitter

2. Trust: As long as you have Escrow option or Pay-on-delivery option, this problem is largely reduced

3. Low purchasing Power: This is not such a problem, even in this hardship, people still dey buy everyday, we're a people that shows a lot, even if na garri some peeps dey dring, they still wan buy Iphone 7

4. Government Regulations: I'm yet to see government regulation that will hinder e-commerce, but I agree this can be a problem later, because government always shook their eyes where they think something is happening or people are making money

5. Infrastructure: This is the major problem, remove this and ecommerce will fly at the speed of light - Epileptic power, Bad road network, Bad City Map, Terrible Transportation network, High Traffic. The headache you will face when it comes to ready infrastructure will practically kill your business before it starts. You can't easily deliver promise to clients because you're not in total charge of the operations - So infrastructure is the #1 Killer.
Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by MIKOLOWISKA: 7:55pm On Feb 07, 2018
NnamdiN:
you forgot the stupid idiottts that abuse the whole thing because they pay on delivery...

Big ups to konga(zinox) for cancelling that shhit.

Jumia needs to man up and do the same, let the online space be left for serious people only.
so person cannot change his mind. He must buy by force abi

Na WA for you o

2 Likes

Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by MIKOLOWISKA: 7:57pm On Feb 07, 2018
Jolar101:
It is because Nigeria is governed by analog government/politicians who are only good in playing politics with every good things.
What stops you from playing the politics
No infrastructure no vote, simple

Nigeria government and politicians don't want to develop their economies but are stealing from Nigerians to developing foreign countries. Are they not stupid
Which govt in the world develops economy. It's the citizens that develop economy. Better stop waiting for govt and enter farm and factory

1 Like

Re: 5 Reasons Why E-commerce Is Not Thriving In Nigeria As It Should by Felixitie(m): 8:16pm On Feb 07, 2018
There is poverty in the land. High level of poverty, and the system isn't helping the situation. We are failed!

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