Developed by Jawolusi Oluwaseun Solomon ( @jawolusy )

The Table of Contents

i. Overview
ii. Feasibility Studies
iii. The Technical Scope of the proposed eCommerce Business
iv. Things to do
v. Necessary assets for effective running of the business
vi. Types of products and target audience
vii. Advertisement and publicity strategies
viii. Possible challenges
ix. Projected total expenses (fixed costs analysis)
x. Projected running costs (variable costs analysis)
xi. Projected profits and the Break-even analysis
xii. Inferences, conclusions & assumptions (BEP Breakdowns)

i. OVERVIEW:
Commercial activities and trading is one of the oldest types of business since the Stone Age where trade by barter systems was used. Many of the business icons being referred to as economic giants of the world today are actively involved in commerce through one way of the other. In this era, the internet is the new marketplace that can be keyed into for different transactional engagements - most especially for an electronic commerce systems.

ii. FEASIBILITY STUDIES
Electronic commerce system became popular in Nigeria within this present decade, though other parts of the world have been reportedly maximizing the internet for transactional and business purposes before this period. However, the likes of Jumia and Konga were the trailblazers in the Nigeria e-Commerce market, while the likes of , car24 and others recently got into the business scene. Studies also show that the e-Commerce industry is not yet saturated and any investor going into the business can be assured of high turnover because of several reasons; number one is the population resources of Nigeria as the Giant of Africa – as we all know, everything sells in Nigeria. The second point is that a new eCommerce business can always survive in the industry so far it can invent a unique competitive advantage above the existing businesses.

iii. THE TECHNICAL SCOPE OF THE PROPOSED ELECTRONIC COMMERCE BUSINESS.
A user-friendly website shall be developed in order to serve as a virtual office for
- customers to make pre-orders of products that are not in the warehouses,
- customers to make instant orders of products that are readily available in the warehouses,
- customers to track their products from one locations to another,
- customers to make an online payments via a well-secured channel,
- customers to have portal accounts,
- admin to have a portal to monitor the various daily transactions,
- other services being offered by the firm.

Subsequently, depending on the financial strength of the investor, cross-platform mobile apps could also be developed to complement the web-driven eCommerce application while also enhancing its wider outreach and accessibilities. However, having a mere ecommerce website for a start is not a bad idea, such a firm can always upgrade to mobile apps services as time goes by.
The proposed eCommerce firm can have two offices (or warehouses) for a start; one in Abuja to cater for customers’ orders being made from the Northern part of the country and the other office in Lagos to handle the orders being made in the Southern part of the country.

iv. THINGS TO DO:
1. Registering the Business with the Corporate Affairs Commission (Nigerian CAC): registering a limited liability company with at least 2 or 3 Directors ((in-line with the requirements of the CAC).
2. Using FCT, Abuja as a practical case study; getting an office space at the Central Area, Wuse, Wuse 2, Jabi, Gwarinpa or at the Abuja Suburb (Kubwa, Lugbe and others) would be needed. For a start, I would recommend that the business-owner should get an office space at the suburb area of the city while it could always be upgraded to a more expensive location in the subsequent years. However, more costs could be incurred for transports and/or dispatching of orders to customers at the Abuja city center when the office is situated at the suburb.
3. User-friendly eCommerce website: users can make orders and also have their orders delivered to them in due time. The website must be a well-secured one due to the fact that a payment gateway will be integrated into it for easy completion of the chain of transaction.
4. If the company cannot afford a delivery van for a start, then it would be a must to purchase a motorcycle for delivery and dispatch within Abuja city (and Lagos as time goes by).

v. NECESSARY ASSETS FOR EFFECTIVE RUNNING OF THE BUSINESS
1. A well-furnished office that would contain the following under-listed: three desktop computer (one PC for the Secretary for administrative purposes, one PC for the ICT/Order Manager for handling customers’ orders and for managing the company’s eCommerce website, One PC for Managerial purposes such as CCTV Surveillance services and others.
2. A mini-vault to keep some valuables in the warehouse.
3. An air-conditioner or 3 standing fans (for a start) just to ensure a conducive environment for staff and customers.
4. Furniture and other office stationeries and accessories: three tables and three chairs, and a reception seats for customers.
5. A generator and an inverter to ensure zero downtime in the situations of power outage.

vi. TYPES OF PRODUCTS AND TARGET AUDIENCE:
For a start, I would recommend that the sales of certain competitive products should be focused on at the beginning of this eCommerce business; other products could be added later (either on a wholesale scale or on a retail scale).

a. Ladies Sport wears: waist trainer for ladies
Target Audience: this is a popular demand for Nigerian ladies that are always in the endless quest for flat tummy.

b. Electronics: Jam Box
Target Audience: many Nigerian youths are always opting to possess a Jam Box for several reasons – despite its portability, it is loud with a touch of deep bass and most are rechargeable.

c. Digital Gadgets: Smart Wrist watch
Target Audience: Both the young and old Nigerians are currently crazy about getting a smart wrist watch for so many reasons like its portability, duly accorded with its ability to perform all the features of a smart phone.

d. Smartphone: becoming the partner dealer of a new Smartphone brand in Nigeria. Such phones could be ordered in wholesales from the U.S. or from China.
TARGET AUDIENCE: Nigerians would like to have a new brand of phone with amazing features like ‘long-lasting’ battery, HD Camera and other amazing features.

e. Solar-powered gadgets and rechargeable electronic gadgets: Such imported products would always sell in the Urban and Rural parts of Nigeria because of the recurring issues of unstable electricity as usual.
TARGET AUDIENCE: Every Nigerian will like to buy such a new product that can readily supplement for the challenges of poor electricity in their immediate environs. It is now left for you to select the best types of solar-powered gadgets/rechargeable electronic products to deal with for a start.


vii. ADVERTISEMENT AND PUBLICITY STRATEGIES
1. Creating a localized Facebook advertisement: this method is a proven viable method to reach out to a particular target audience.
2. Subscribing for a sponsored ads on twitter, Facebook, Instagram, Nairaland forum and Google ads sense
3. Consulting and/or partnering with a social media influencer: some celebrities and public figures already have millions and thousands of followers on prominent social networks, such known personalities can easily make the products and service being offered by the new e-Commerce company known to their followers by posting such on their walls and also sharing such online.
4. Advertising on public outlets by using outdoor banners and other advertorial signage (this might be expensive for a start-up business)

viii. POSSIBLE CHALLENGES:
- The clearing and forwarding of some imported products might face some delay, most especially when such are shipped into Nigeria
- Security challenges: some areas are quite prone to insecurities issues in Nigeria, therefore, the delivery and dispatch of ordered products might be face certain complications or more cost might be incurred in order to secure the delivery process (by hiring some security personnel).
- Publicity and advertisement: creating a general awareness of the existence of a new type of competitive business will be a demanding process
- Inventing a competitive edge required to race with the existing ecommerce businesses (Konga, Jumia, & etc) is also a tasking process



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Thanks.

Jawolusi Oluwaseun Solomon (@jawolusy)

nice one boss

what of factors like tax,insurance etc....

And must it be in places like lagos,....i reside in the south south....

EmeraldKing7:
nice one boss

what of factors like tax,insurance etc....

And must it be in places like lagos,....i reside in the south south....

A unique business plan should be developed for every venture with respect to certain factors.. that's story for another day. This business idea was developed for Abuja.... Etc. Etc

There was a time when digital commerce meant static storefronts and shopping carts. Today, digital commerce spans an integrated set of personalized digital experiences, from customer acquisition through retention, which are often owned and managed by marketing.

Nowadays, digital commerce is so much more than a sales channel. For example, according to the same study, 65% of customers research a product online before they go to the physical store.Read this next: The State of Commerce Experience 2021 [Insights from an annual analyst study]

To get the full report, read it here

https://www.shoplifecommerce.com/2021/07/14/digital-commerce-top-challenges-trends-and-steps-to-take-in-africa/