There has never been a better time to go the e-commerce route in Nigeria because as a business, it is currently booming and the go to business for most Nigerians.
The first thing to consider is how easy it is to start.
You start with a small capital of N50,000 infact there are cases where the merchant started with as little as N20,000 and still scaled to millions of naira within a short period of time.
Starting e-commerce business in Nigeria with low capital is easy, it is the scaling part most people struggle with.
Competiton in the Nigerian e-commerce space it just too stiff. Even if you launch a unique poduct today and it starts selling out, withing months other merchants like you are selling that same or similar product but worse than that, some merchants are for reckless, they will use your sales copy thereby saturating the market before you even begin enjoying the fruits of your labor.
That is why when it comes to e-commerce in Nigeria, you just can’t depend on products alone. You need to know how to create eye catching sales copy, converting ads, setup proper landing pages, a flowing sales funnel, autoresponders…. the whole works to be a successful entrepreneur in e-commerce.
E-commerce business is a thriving hub in Nigeria. This is because almost everything is done online these days. There are a lot more people online these days than offline. These individuals are looking for one thing or the other.
A sizeable amount out of the denizens online are looking to buy things. Things that every human needs. As a result they go to online stores, browse through what they want, place their order, make payment, and they get it taken to them wherever they are. This brings comfort and saves a lot of stress that could be used for shopping offline.
How profitable is e-commerce in Nigeria?
Take Jumia and Konga for instance.
Africa Internet Group owns online retailer Jumia and 9 other e-ventures. Its best-known venture is online retailer Jumia, one of Africa’s better funded startups. Since its inception in Lagos in 2012, Jumia now operates in 14 African countries selling everything from diapers to iPhones and microwaves.
In 2016, the venture funded company reached a billion-dollar valuation, and reported revenues of $149.6 million in 2018.
In April 2019, Jumia listed on the New York Stock Exchange (NYSE) at a valuation of $1.1 billion and recorded a surge in sales arising from its NYSE debut. Konga was set up in 2012 as a competitor to Jumia, selling a wide range of products from home appliances to groceries.
It merged with Yudala in May 2018 but continued to operate under the Konga brand name. In November 2016, Konga launched Yakata, its version of black Friday sales and reached over 155,000 orders, valued at nearly ₦3.5 billion for the month alone.
Read more from the International Trade Administration
Over 14 million visits on Jumia website during the Black Friday event of 2017, with at least 86,000 smartphones sold during that same period.
It’s great to throw numbers out there like e-commerce market prediction of 2025 will be X billion naira, but numbers like that shouldn’t concern you much in my opinion because you should be looking at the success of everyday people like you and me rather than just big brands, market estimates, market cap and predictions.
See this product and see the profit being made
Then there is Lydia who started with just N30,000 but made over N300,000 in 3 months.
Add then see this.
In fact, when done reading this article, come back and watch this video to see how profitable e-commerce business in Nigeria is for everyday people like you and me. Click to play.
Benefits Of E-commerce In Nigeria
Comfort is one of the primary reasons while most people buy things online. And because of this, the e-commerce business has blossomed into virtually all round aspects. There are e-commerce platforms for clothes, accessories, even food and drinks.
Many are joining into the business, but a problem remains. Many still don’t know how it works. And those who have heard of it are scared to venture into it.
First of all, there are 8 different types of e-commerce as we know it.
But Why e-commerce business in the first place?
Why You Should do E-Commerce Business
If you have capital as small as N20 to N50k you can start an e-commerce business. It is not a capital-demanding business like others you have probably heard about. And if you think this is the only reason why you should think of venturing into the business, here are some more reasons why e-commerce presents itself as an ideal one.
6 Reasons To Do E-commerce
1 You don’t need a physical store to start your e-commerce business. As mentioned before, e-commerce is a business that thrives in the online space. There is no need for renting a store. You don’t need to think about that money.
2 You don’t have to buy products in bulk, which you do with having a physical store. Just with a small capital you can start small, and then scale up with time.
3 You don’t need to be where your customers are before you can sell. The online space offers limitless customer availability around the world.
4 You don’t even need a website to get started with the business. Getting a website alone costs you more than the intended capital for the business.
5 You can scale up to 1500% profits as you progress with the business.
6 E-commerce is a scalable business. You can start the business by focusing on a single product, and then expand as you grow. Your profit margin can increase in percentages you never would imagine.
All of these and more are reasons why you can think of e-commerce as a means to your financial freedom. But you need to be shown how to get it right the first time otherwise you will be throwing money down the drain while you keep hearing people’s testimonies.
Start your E-commerce journey with Expertnaire 10x e-commerce course
Challenges of e-commerce business in Nigeria
There are 4 major challenges of e-commerce business in Nigeria whether you are a one person small startup working from your home with a laptop and a budget of N20,000 or you have a huge start capital of over N10,000,000 these challenges will hit you hard.
Sourcing for hot products
Imagine you want to get into the smartphone business, first few phone brands that comes to mind are Apple, Samsung, Nokia… but when it comes to hot products you have to think outside the box because all your way more popular competitors are selling those same brands at cheaper rates already. You can sell those brands but also consider what will put you on the map as an addition!
What good is having the best products in town of no one knows about it or even bothers to check it out? The pain of researching and ordering products you consider best selling, setting up your shop whether online or offline, marketing your product and still no worthwhile customer base aside family and friends.
Apart from the fact that not all locations can be easily accessible by car or even delivery bike, there are just those instances where delivering to one customer in a particular location doesn’t make business sense. There are so many concerns to digest in one go – safety, terrain, customer unavailable… the list goes on.
This payment issue is usually brought to you in 2 ways, either the customer is not comfortable paying online by placing their credit card details on your website or portal due to trust issues or the customer simply doesn’t trust you enough to pay for the product before seeing it in person.
Few things more frustrating than a customer returning product so now yo have to provide a refund with money you already had better plans for. Worse than that is when a customer orders a product just “to see what it looks like in person”, the cost of delivering and returning the product alone can be hefty depending on product.
Fortunately, there is a man who can show you how to make 10x profits, scale your business, and how to start a business from scratch, even if you have no idea how to begin.
Jonathan melody is a seasoned e-commerce expert that started his e-commerce business more than five years ago. His success alone has given him the room to mentor and show others the secrets to running a successful e-commerce business.
See what people are saying about Jonathan:
He has decided to help individuals like you by sharing a free training guide for you to be able to start your own business.
INSIDE THE 10X E-COMMERCE BLUEPRINT
Jonathan Melody calls the training 10X E-commerce business training. And in this training, Jonathan will show you:
1 How to start the e-commerce business
2 How you can find and identify hot selling products that people want.
3 Where and how to buy quality products, so you don’t run at loss with your business.
4 Common mistakes and secret mistakes that people make in their e-commerce business.
5 How to scale to a higher profit margin if you’re already in the business.
6 How to ship your products and get it delivered to you.
7 How to start selling them, and making 10x profits within the first two-three months.
All of these and more you will be exposed to in the 10x e-commerce master class and blueprint.
Inside the 10x blueprint:
Jonathan Melody is waiting for you to join him in the training by following this link below:
Click here to join Jonathan Melody Now