Home nigeria tech startup The Gold Rush of E-commerce Startup’s in Nigeria

The Gold Rush of E-commerce Startup’s in Nigeria

Let be honest the e-commerce space in Nigerian is very promising sector no second thought about it, but the rate at which every entrepreneur, business man or woman want to start an e-commerce company is very alarming, especially among those entrepreneur who have never done any kind of online business, e-commerce startup if done the right way can go to large extend in building a strong brand for the entrepreneur and the ecosystem at large, but many entrepreneur do not have the patience and courage in order to do it in the right way.
with the unending issues of pay on payment on delivery, and so many other challenges that  player in the space are currently facing, the only thing that can keep you is the purpose of which you are doing it.

E-commerce Startup
Source From: venturesafrica.com

Most of the big player in the e-commerce space are not healthy when it comes to generating revenue because of the unsustainable business model of pay on delivery with aim of catching the largest share of the market which at the end the can’t satisfy which in turn has very adverse effect on their logistics.

The are so many other online stores that have adopted the pay before delivery and the are doing pretty well serving small section of the market example are the like of drinks.ng and gloo.ng

There are so many other things I really wanted to your understand before you rush and hire a  developer to build that e-commerce platform, do your proper research on the industry and curved a niche for yourself, start small is something everyone must do in the early day,several of the big players
like gloo.ng start small within their area, except if you have cash to burn, focus on delivering on a small-scale.
Here are Three Challenges You Will Face When  Starting an E-commerce Startup

  • Delivery Infrastructures

No doubt even the big player in this space are having a top time with delivery infrastructures in the country, although some of them have invested in developing their delivery service which to a large extent has reduce their logistics spending, but as for the smaller e-commerce startup who can’t afford this delivery infrastructures, outsource is the best way forward.

  • Fear and Mistrust

In Nigeria the percentage of people who carry out online transaction with their card is not something to write home about, and this largely due to the fear factor that Nigerian have when it’s comes to online transaction, this is why some e-commerce startup adopted the model of pay on delivery which is a large extend is not a sustainable model, but this at least what the can do to reduce fear of Nigeria when it comes to shipping online.

  • Marketing Spending

When you are starting an e-commerce startup in Nigerian, be prepared and ready to spending huge amount of money to get your brand out for people to know, As the days goes by competition in the e-commerce space is becoming more and more competitive due to concentration of almost all the e-commerce startup in one part of the country and neglecting another part, you can take advantage of this pitch fall, and invest your money to promote your e-commerce store to that neglected section of the market, soon before you know it ,the market is your.
Also Read : How to Create a Niche For Yourself in the E-commerce Jungle
Building an e-commerce startup is hard, just like other technology startup company, rushing to start one because other are doing it is not the right thing, instead look around and find a problem you can solve with your skill, our country is feel problems everywhere you look, it’s our responsibility as an entrepreneur to come up with solution to this problem.
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