The Nation Newspaper

Tag: online-shopping

  • Online shopping in Nigeria, others may hit $75b by 2025

    Online shopping in Nigeria and other African countries could account for up to $75 billion in retail sales by 2025, a report by the McKinsey Global Institute has projected.

    The report, which was got by The Nation, said e-commerce and Financial Technology (FinTech) represented two of Africa’s biggest growth opportunities, with the mobile technology market driving the two sectors.

    “More than half of urban African consumers already have Internet-capable devices and this number is increasing. Online shopping in Africa could account for up to $75 billion in retail sales by 2025,” the report said.

    Encouraged by the continent’s e-commerce boom, multinational logistics company DHL Express said it has once again signed on as lead sponsor for the 2019 DHL e-Commerce Africa Conference and Exhibition, which will be held at the Cape Town International Convention Centre fromMarch 19 to 20.

    The e-Commerce Africa Conference and Exhibition, delivered by DHL, is hosted by South African conferencing company, Kinetic, and is one of Africa’s biggest opportunities to bring stakeholders in the e-commerce sector together.

    Later in the year, Kinetic will also bring the conference to Kenya, with the e-Commerce East Africa edition, also delivered by DHL, set to take place in Nairobi from June 12- 13, 2019.

    This year’s event offers participants an opportunity to learn from world-class thought leaders, both from Africa and the rest of the globe, on the innovative strategies that will unlock e-commerce opportunities over the years to come.

    Delegates from some of the continent’s biggest tech, retail, banking and legal firms will be in attendance to share their experience and engage with attendees to exchange knowledge.

    Vice President Sales for DHL Express Sub-Saharan Africa, Steve Burd, explained that the ongoing partnership between DHL and e-Commerce Africa was a good fit. “As the market leaders in express logistics in Africa, we have extensive first-hand experience of the positive impact that e-commerce has on the continent,” he said.

    The massive growth in cross-border and international e-commerce in Africa, Burd said, has seen DHL working with more customers across the continent each year, helping them to expand their brand across borders.

    He added that e-commerce development in Africa has continued to unlock major opportunities for growth. “E-commerce allows entrepreneurs and Small and Medium Enterprises (SMEs) to connect with a large customer base and scale up rapidly,” he said.

    Pointing out that this had accelerated the need for support services, Burd said e-commerce growth therefore, has a ripple-effect on many other industries on the continent, adding that “DHL’s partnership with e-Commerce Africa provides us with an additional platform to connect with organisations and help them to understand key logistics considerations.”

    Kinetic Managing Director Terry Southam said the collection of thought leaders and the topics under discussion this year are aimed at creating an immediate impact for African e-commerce companies.

    “From marketing to fulfilment, the world’s best will be on stage sharing best practice and innovative hacks to drive online growth.

    “It is quite remarkable to have all of these industry leaders on the same stage–not only willing to share, but actively working to grow the industry and ensure African customers receive a world-class online shopping experience.”

    Southam said this year’s conference theme is ‘Conquering scale’, adding that his company could not be happier to have a market leader like DHL on board to help deliver two key e-commerce events on the continent this year.

     

  • Online shopping in Nigeria, others may hit $75b by 2025

    Online shopping in Nigeria and other African countries could account for up to $75 billion in retail sales by 2025, a report by the McKinsey Global Institute has projected.

    The report, which was got by The Nation, said e-commerce and Financial Technology (FinTech) represent two of Africa’s biggest growth opportunities, with the growth of the mobile technology market driving the two sectors.

    “More than half of urban African consumers already have Internet-capable devices and this number is increasing. Online shopping in Africa could account for up to $75 billion in retail sales by 2025,” the report said.

    Encouraged by the continent’s e-commerce boom, multinational logistics company DHL Express said it has once again signed on as lead sponsor for the 2019 DHL e-Commerce Africa Conference and Exhibition, which will be held at the Cape Town International Convention Centre fromMarch 19 to 20.

    The e-Commerce Africa Conference and Exhibition, delivered by DHL, is hosted by South African conferencing company, Kinetic, and is one of Africa’s biggest opportunities to bring stakeholders in the e-commerce sector together.

    Later in the year, Kinetic will also bring the conference to Kenya, with the e-Commerce East Africa edition, also delivered by DHL, set to take place in Nairobi from June 12- 13, 2019.

    This year’s event offers participants an opportunity to learn from world-class thought leaders, both from Africa and the rest of the globe, on the innovative strategies that will unlock e-commerce opportunities over the years to come.

    Delegates from some of the continent’s biggest tech, retail, banking and legal firms will be in attendance to share their experience and engage with attendees to exchange knowledge.

    Vice President Sales for DHL Express Sub-Saharan Africa, Steve Burd, explained that the ongoing partnership between DHL and e-Commerce Africa was a good fit. “As the market leaders in express logistics in Africa, we have extensive first-hand experience of the positive impact that e-commerce has on the continent,” he said.

    The massive growth in cross-border and international e-commerce in Africa, Burd said, has seen DHL working with more customers across the continent each year, helping them to expand their brand across borders.

    He added that e-commerce development in Africa has continued to unlock major opportunities for growth. “E-commerce allows entrepreneurs and Small and Medium Enterprises (SMEs) to connect with a large customer base and scale up rapidly,” he said.

    Pointing out that this had accelerated the need for support services, Burd said e-commerce growth therefore, has a ripple-effect on many other industries on the continent, adding that “DHL’s partnership with e-Commerce Africa provides us with an additional platform to connect with organisations and help them to understand key logistics considerations.”

    Kinetic Managing Director Terry Southam said the collection of thought leaders and the topics under discussion this year are aimed at creating an immediate impact for African e-commerce companies.

    “From marketing to fulfilment, the world’s best will be on stage sharing best practice and innovative hacks to drive online growth.

    “It is quite remarkable to have all of these industry leaders on the same stage–not only willing to share, but actively working to grow the industry and ensure African customers receive a world-class online shopping experience.”

    Southam said this year’s conference theme is ‘Conquering scale’, adding that his company could not be happier to have a market leader like DHL on board to help deliver two key e-commerce events on the continent this year.

     

  • ‘Social media’s impacts on online shopping overrated’

    Social media’s impact on e-commerce has stalled, despite rumors that it is playing a critical role in driving sales.

    According to SalesForce’s Q1 Shopping Index, the growth of shoppers, using social media channels, has been essentially flat since the first quarter of 2017, represented only 4.7per cent of all visits to e-commerce sites in the latest quarter. This has translated to only two per cent of all e-commerce sales.

    “Despite the industry’s hype around social media playing a critical role in driving traffic in the past few years, results showed us that social media actually stalled in Q1,” said Rick Kenney, Head, Consumer Insights, Commerce Cloud at Salesforce. “Social media has been an emerging channel, so there’s been an expectation of high growth, but the reality is that traffic share from social to e-commerce sites is stagnant, quarter-over-quarter, and direct contribution to sales is very low,” he added.

    And by no means does this mean a stall in digital sales, as retailers report a 15 per cent growth in digital revenue for the quarter, even as high as 18 per cent and 19 per cent in the categories of home and luxury apparel, respectively?

    Comparing social media to other channels in the first quarter, mobile drove 60 per cent of all e-commerce traffic. And mobile conversion rates grew by 14 per cent, with phones accounting for 41 per cent of all orders.

    So, why have social medial sales stalled? Kenney believed it could be consumers growing tired from the overwhelming amount of advertisements they are experiencing, and therefore, consumers may be tuning out or scrolling right past shoppable posts.

    “Business owners will have to learn how to adapt and find new ways to engage consumers on social media if they want to continue to drive traffic to their e-commerce sites,” he said.

    Finally, the report revealed that discounts are still a popular strategy and have actually increased by 10 per cent. Free shipping was also a popular offer, as 65 per cent of all orders were shipped for free in the first quarter, an 11 per cent increase over the past two years.

    Moving forward, Kenney believed social media will remain static unless there is a major advancement or new technology, but digital commerce and mobile conversion rates will continue to climb.

    “The year-over-year digital revenue growth for retailers speaks for itself, and with phones now accounting for nearly half of all e-commerce orders, we will continue to see mobile’s influence on digital commerce grow,” he added.

  • Online shopping: Beautiful bride

    Online shopping: Beautiful bride

    With growing awareness in technology and more exposure to western lifestyle, more tech-savvy Nigerians are embracing online shopping. The fad has several merits for shoppers, writes TONIA ‘DIYAN.

    Nigerians have embraced the digital age, brought about by mobile phone revolution. With the increasing use of mobile phones, the Internet and the social media, many, young and old, can now do online shopping from the comfort of their homes and offices at the click of a button.

    Many of them have become brand savvy and eager to experiment simply by visiting any online retail outlet of their choice to buy goods and services.

    A survey for PayPal, an online retail outlet,  in 2015, among 500 people, estimated that 65 per cent of the country’s 50 million Internet users have shopped online at least once, while 24 per cent plan to do so.

    The survey said people have gradually migrated to buying items more online with the introduced ‘pay on delivery method’(see and touch what you are paying for), which is introduced to convince the average  Nigerian  that nobody intends to steal from him.

    This method of operation gradually built trust in the minds of many who now shop for items online.

    According to a survey, of the over 40 million Nigerians who are online, a sizeable amount actually visit online stores, resulting to a rapidly growing trend in visits and purchases.

    It has also been noticed that a target group of individuals who have access to the Internet and are in the age range of 18 to 40 years shop more on line in Nigeria.

    Indeed, online shopping in Nigeria is a fast-expanding area of  business. According to  Chief Executive Officers (CEO) of online companies,  the challenges, costs and logistics of operating offline retail shops in Nigeria make the value proposition of online shopping very relevant.

    The CEOs said online shopping by urban consumers has more than doubled, noting that digital influence has been rapidly expanding to small urban towns and rural areas, thereby increasing the number of mobile users in the country.

    The retail industry is generally fragmented, with huge differences in pricing, but online shopping, according to experts, tends to be 10 to15 per cent cheaper than other retail options and prices are consistent.

    In five years of its existence, online shopping has become a price setter for electronic and other goods. People compare prices on the street with prices online.

    The online sector remains the largest e-commerce sector in Africa valued at $13 billion and growing rapidly at 25 per cent annually. This, of course, is driven by the increasing number of people getting connected to the Internet.

    As  at  2013, Nigeria emerged the country with the largest  Internet connectivity in Africa with more than 56 million Internet users. This growth is further reflected in the number of orders made online from major online retailing vendors, which increased from 1,000 orders per day in 2012 to 15,000 orders per day in 2015.

    What this means is that   Nigeria has a great potential of adopting online shopping.

    However, there  are concerns around the security of online payment, delivery time, product quality and Internet  usage costs.

    Despite the concerns, online retailers are still building trust and interest is growing.

    Generally, online stores are identified by how they sell themselves. This means that the quality of their websites and constant innovation on their user experiences, count.

  • Shopping Online? Do It with Jiji!

    The world is developing so fast that it is simply impossible to keep an eye on every new thing, whether it is related to technology, entertainment, or our comfort. Some of them come and go, and some are good and needed enough to stay. In all this mess, only one thing is undeniable: you could not fail noticing, how Jiji.ng quietly has entered daily routine of so many Nigerians, and shortly has become its inseparable part.

    Pix

    So, what is Jiji.ng? If there is a chance you are new here, it is time to be attentive now. Jiji is classifieds website #1 in Nigeria – it is a place, where users can find truly everything, from a pair of socks to a dream job, from a perfect vehicle to kilo of rice.

    Jiji is a unique service, where people can easily sell and buy things, both new and used, look for and offer jobs and services. It is a modern trade and communicational platform, connecting residents of Nigeria regardless of what distant place they are located. Jiji.ng is available in every single place, where the Internet connection can be found. And it is always ready to offer solutions. It is a website used by ordinary people and well-known successful companies and businesses. Here, anyone is free to find a job or an employee, to rent or buy a house, apartment, or commerical property. Fashionable clothes, shoes, accessories, devices, appliances, furniture – everything is represented by the huge selection of ads, each comming with photos, detailed description, and sellers’ contacts.

    Pix 2

    For some, it may sound too much like a fairy tale, but this is really what Jiji is and how it works. Of course, you can ask for explanations and ask for reasons why a user should choose Jiji, but prepare to get the long list of advantages. Firstly, Jiji takes care about its users. The service is constantly developing and improving in order to keep up with time and meet the demands of every customer. Secondly, Jiji offers really huge selection of items, all coming at the lowest prices. It is possible thanks to the direct communication between sellers and buyers, no any mediators or additional charges. You are free to communicate with sellers personally, ask them any questions, and get access to the complete assortment of high-quality goods and services.

    pix 3

    Thirdly, there is no need to worry about scammers. Jiji’s security system tracks all suspicious activity, detects fraudsters and removes them forever. Moreover, there is a list os scammers available on the website, so users can check it or add someone, who seems suspicious to them. Finally, Jiji.ng is the easiest way to earn some extra money. Just find a thing you do not need anymore, but which is also too good to get rid of. Make some photos, write a description, and post it. Lower competition compared to offline trade services together with user-friendly interface, convenience in usage, and maybe some of the offered boost packages will bring desirable results shortly.

    Pix 4

    Besides, Jiji offers even more advantage – specially designed Jiji App, which puts hundreds of thousands of available offers in your pocket and keeps them all within easy reach. The app doesn’t occupy much storage place, doesn’t use much traffic or interfere with overall performance. It is available for free and constantly upgraded. Thanks to Jiji App, you can receive notifications about items you are interested in and order what you want at any moment and from any place. Finally, Jiji has its own blog with interesting articles, useful tips and advice, latest news and trends. It is a great place for everyone, who looks for entertainment and useful information. New articles appear every day, helping readers to stay in trend.

    Pix 5

    The development of the Internet technologies makes the world a place, where there is hardly anything unaccessible. E-commerce becomes more and more popular every day, and it is not surprising. But when you decide that time for shopping has come, do not waste your time for searching a proper place to get this or that thing – the perfect place already exists, and it is Jiji.ng.

    We can start the story over again, with new facts, advantages, and reasons to choose it #1 shopping spot, but one visit to Jiji.ng will be enough for you to make sure everything mentioned above is completely true. Check out Jiji and enjoy your shopping time!

  • Black Friday: best deals are on today

    Black Friday, the biggest discount bonanza for shoppers, is here again. The bonanza, introduced by online shop Jumia two years ago, offers great deals to shoppers with Jumia selling double awoof vouchers which offer customers double items for their money. It  completely sold out all items way ahead of the day, an evidence that Black Friday cannot be avoided.

    Also last year, all online shopping platforms operated the Black Friday campaign and recorded positive customer reactions. This year, they have again jumped at the chance to participate again and are offering more discounts this year.

    This year’s Black Friday aims to offer more value to customers who have been amazing with extensive selection of products from top brands at best prices. On Carmudi Nigeria website, car buyers will be able to enjoy discount on a large range of cars. Managing Director, Carmudi Nigeria, Amy Muoneke, said shoppers should expect very affordable cars and discounts on items they buy. “At Carmudi Nigeria, we will be rewarding car dealers with discount advertising and car buyers with affordable cars. The aim of Black Friday is to make affordable cars available to car buyers. From today, individual car sellers who want to see their cars through the Carmudi website will pay a discounted fee of 2,000 only for as long as that particular car is available for sale”

    Jovago Nigeria, an online hotel booking platform promises unbelievable discounts of up to 50 per cent on selected hotel rooms on offer. Its Head of Public Relations, Ohaedoghasi Rita told The Nation Shopping that every customer who books with them will get the best price on every room.

    On the Jumia website, there are vouchers, special deals to say thank you to esteemed customers for their loyalty. Supermart.ng offers up to 30percent discount on hundreds of grocery items when customers buy items worth N10,000.

    The Communications Officer of Supermart, Tayo Alofun said, “hundreds of grocery and everyday essential items have been discounted to rock bottom prices for our customers. Customers can select these and more online and receive delivery to their homes and offices across Lagos”.

    To access the deal, customers will simply have to log on to supermart.ng, select various desired items from the widest range of groceries in Nigeria and enter the voucher code SUPERDEAL to receive their instant N3,000 discount.

    Easy taxi will be giving out better ride in terms of ease, reliability, comfort and safety. Shoppers can get N2000 off Taxi Ride today by downloading the Easy Taxi app on android or iPhone, and use the code ETBlackFriday.  Senior Public Relation & Communications Associate, Tracy E. Oyekanmi said “Over the last six months, we’ve worked hard to gather feedback and listen to our customer’s concerns and needs, and we’ve revamped the entire Easy Taxi experience. And our aim is to allow more people in Lagos experience a ride on Easy Taxi at a lower risk to attract prospective customers.”

    On Kaymu.com, shoppers who patronise the Kaymu’s Black Friday Store access to items at prices they never imagined possible. In addition Kaymu has thrown in free delivery on purchases within Lagos to ensure people enjoy the best possible shopping experience this Black Friday.

    Tomiwa Oladele, Head PR & Offline Marketing said: “As a brand which is passionate about fulfilling our customers desires, Black Friday gives us the opportunity to connect our community of buyers and sellers  in an exciting shopping experience. Through this campaign we hope to add value to our customers by giving them the opportunity to fulfill their wish list within their budget and position Kaymu as a brand where people can get affordable items all year round.”

    She added: “We are fulfilled at the knowledge that through the Black Friday campaign we will be able to provide value to our new and existing customers by giving them the opportunity to shop massive discounts as well as provide revenue for our community of sellers who are expected to triple their sales during this period.”

    Hellofood. com, will double its volume of orders and  empower its consumers with great savings. The online food store will offer its consumers via its partner’s restaurants an entire day of tremendously low price food deals with up to 50per cent discount as well as free delivery on all food orders from any restaurant.

    Its Public Relations Executive, Kike Ojo said: “Consumers’ will be able to order from over 250 restaurants on the hellofood platform, there will be new cuisines at  reduced price and fast food delivery at no extra cost.

    At Yudala, there will be location-specific sales which will kick off from 8:00 am today at Ikeja, Festac and Surulere, 9:00 am at Lekki and 10:00 am at Apapa while the online sales starts by 12 midnight. The mega-fest will continue with the Yudala Cyber Monday on November 30 where shoppers can shop non-stop at eye-popping prices.

    Autogenious is giving out whopping discounts on insurance and AA rescue products.

    They are giving out 10 percent of car insurance premium for a year.

  • Black Friday: Tips for safe online shopping

    Black Friday: Tips for safe online shopping


    Black Friday beckons and the promises are glamorous. While some stores are brandishing up to 50 per cent discount on products, some others flaunt a glamorous 90 per cent discount. Ecommerce sites have refused to be left out of the frenzy and are all making plans to outdo one another.

    Indeed, online shopping is super cool because it the most convenient of all forms of shopping, especially if you work on a tight schedule. However, because we live in the age of hackers and spammers, it is important to be security conscious as you leap from site to site on Black Friday. While some people are security conscious, they still do not know what to look out for while shopping.

    If you love the convenience of shopping online but are worried about theft and shopping wrongly, click the start button below and pay attention to the simple tips for a safe and stress-free experience as well as how to keep your identity and information secure.

    Tips for safe online shopping

    Look out for product reviews

    Many Nigerian e-commerce sites have provisions for product rating and review, but some Nigerians are not very familiar with the idea of product reviews. If you have to purchase any product online, look at the product’s review page. It is usually down the product page, close to the product description. When you purchase a product and have tried and tested it, leave a review under the product. It will give credibility to the seller and help another buyer make a good purchase decision.

    Make sure the product you are purchasing is for your region or location

    This is very important to note in case you have to return the purchased item for any defect reasons.  
    When purchasing items on international online shops such as Amazon or e-Bay, look out for the clause “this item ships (or does not ship) to your location”. 
     
    Here’s why.
    If you buy an electronic device because it’s cheaper to buy abroad and you happen to be abroad at the time or you find a way to get it sent down to you, it may not be attended to locally in case of any issues with it. Even under warranty, local distributors or dealers may not attend to the product if it is not for your country or region. 

    Consider shipping cost

    More often than not, you can afford the shipping cost on product delivery, but would you want to pay extra to return a product that has a defect? Refer to number 2 again, you may be able to afford a shipping on returns fee if the location is reachable. 

    Shop at trusted websites only

    Whether you are buying a shoe, software, laptop or car online, you need to be sure that the website you’re shopping from is secure before you input your information. Look out for the padlock symbol on the address bar. If it is there, it means your connection is secure and identity thieves cannot snoop around your sensitive information.

    Pay on delivery

    Many e-commerce platforms in Nigeria offer the option to pay on delivery for a product. Before you pay, you are allowed to check through the product to be sure it is exactly what you ordered for (as long as you do not tear off the label and important parts of the packaging). So, if you are still bothered about identity/information theft or your money entering ‘voicemail’, pay on delivery.

    One password must not fit all

    We all love the convenience of using one password for all our online accounts because it means we do not have to break a sweat when we need to recall it. It is however ill- advised. Also, avoid creating passwords that are easy to guess. Consider using a combination of numbers, letters and symbols. You may wish to play the video above for a lesson on how to create passwords for different websites that are easy for you to remember, but difficult for others to figure out. 

    Do not save your browsing history

    When using a shared computer, it is important that you do not leave your browsing history on the computer. Deleting your browsing history may not readily come to mind after you browse on a shared computer, therefore consider browsing in private mode.
    Private browsing mode is called ‘incognito’ or ‘private’ mode, depending on the browser. It does not save your browsing history, site preference, login information and blocks cookies, which in turn prevents fraudsters from tracking your online behaviour. 

    Finally, avoid using free Wi-Fi

    We know that data is still expensive in Nigeria, but like our elders say, “awoof dey run belle”, and the English people say “all that glitters is not gold”. Open wireless networks will put you at risk of information theft.

    Better be safe than sorry

    When in doubt of the security of the website you are buying from, look for a ‘Pay on delivery’ option. If it does not exist and you are uncomfortable with paying online, ignore e-commerce and take a trip to the market or mall.

  • Sales: Online shopping booms as grocery operators lament

    Sales: Online shopping booms as grocery operators lament

    Operators of large supermarkets and small businesses have raised alarm over a sharp drop in their sales, following the booming online shopping in the country.

    The News Agency of Nigeria (NAN) reports that online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet.

    Alternative names of the system include e-web-store, e-shop, e-store, online store, online storefront and virtual store.

    Some of the managers of the stores, who spoke with NAN, complained that e-commerce had slowed down their businesses as well as reduced volume of sales.

    The system has also caused decline in revenues accruing to state governments which have not perfected mechanisms to monitor activities of operators and collect revenues in their states.

    A survey on the operation of online shops in some major cities of the country, including Abuja, Port Harcourt and Kaduna, shows that small business operators are complaining of low patronage.

    Mr. Kazeem Olagoke, Manager, Samsung Telecommunications, in Abeokuta, noted that the ease in buying products online made such system more attractive to clients than buying from open markets.

    “Many people prefer to sit within the confines of their rooms and order for goods online which are being delivered to them without sweats.

    “You know it saves them transport cost, stress and time they could have spent to purchase the goods at physical markets.

    “So it is increasingly becoming difficult to attract and maintain clients,” he said.

    Mr. Adeyemi Johnson, Manager, Shallom Mega Stores at Oke-Ilewo, Abeokuta, noted that online shopping “has created serious competition in the physical market”.

    “Owners of the online businesses have their agents all around, who even visit our stores and lure away our clients.’’

    Dr Michael Simpson, a Lecturer at the Department of Economics at the Olabisi Onabanjo University, Ago-Iwoye, however, described online shopping as a positive trend in Nigeria.

    He noted that the development had contributed significantly to the entrepreneurial skill of Nigeria, particularly the youth.

    According to Mrs. Adenike Ajala, a civil servant, the advantages of online shopping is that online stores are opened 24 hours daily and internet offered many resources for products and price comparisons.

    “It provides customers with a wider range of products and services, many which cannot be found at the physical markets,” she said.

    Following the trend in business lull in open markets and the booming e-business, the Kaduna State Government said it planned to set up a structure to monitor the platforms with physical presence in the state.

    The state’s Commissioner for Commerce, Industry and Tourism, Malam Shehu Balarabe, said the ministry had begun to identify and locate all online-shopping outlets in the state.

    “We need to know where they are and how they operate with a view to checkmate their activities,’’ he said.

    The commissioner said that the measure had become necessary to protect consumers from fraudsters who would take advantage of internet’s free highway to swindle consumers.

    He noted the need to enlighten the public on the advantages and the dangers of online-markets that were fast gaining popularity with improved internet access.

    Mr. Jenom Nyam, a Kaduna businessman who utilised online platforms for over 10 years, said highlighted the high risk associated with it and the need for monitoring.

    “Sometimes when you make purchase online, after supplying your credit card details, money would be deducted from your account, but the goods will never get to you.’’

    However, an economist with the Kaduna State Ministry of Budget and Planning, Mr. Yusuf Auta, said in spite of the huge risk associated with e-shopping, government could still tap from its huge revenue potentials.

    Auta explained that the platforms provided huge employment opportunities and wide range of taxes that could be derived from the markets, if allowed to flourish.

    “Manpower is needed to run the market, thereby creating employment opportunities.

    “ The staff are paid salaries and obliged to pay Personal Income Tax (PIT) which is a huge source of revenue to the government.’’

    “Also, the organisations that run online-market platforms usually have physical presence where their goods are stocked for delivery to customers; government could charge ground rent on the land,’’ he said.

    Financial experts in Port Harcourt expressed divergent views on the potentials and benefits of the platform to the nation`s economy.

    Mr Emmanuel Jumbo, a management expert, said the system was not in the interest of the nation`s economy.

    “ It makes the buyer to pay more for any service.

    “ For instance, I ordered for a handset (phone) worth N28,000. I paid extra N2,000 as cost of delivery. It means that for anything you buy online, you pay extra.

    “ Meanwhile, the owner of the shop pays nothing as tax to government because he does not have a rented shop and operates from home,“ he said.

    However, Ephraims Okon, a stockbroker, said online shopping had brought a new dimension to commerce in the country.

    He also said that the proprietors paid tax to government because they also bought such goods from somewhere and in the process, paid Value Added Tax.

    Corroborating the position, the Director, Communications and Liaison Department, Federal Inland Revenue Service (FIRS) Mr. Emmanuel Obeta, said the operators were collecting agents, working on behalf of the Federal Government.

    Obeta said that every item sold by the online shop was inclusive of VAT element of five per cent, which would be remitted to the FIRS.
    “The five per cent VAT is attached to every product you buy so long as this goods is not VAT exempted.

    “ At the end of every month, these online shops which operate as registered businesses, when piling up their returns, remit the VAT to us (FIRS),” Obeta said.

  • VConnect unveils new homepage

    VConnect unveils new homepage


    VConnect, the online marketplace with over 1 million businesses has taken another leap forward in empowering SMEs in Nigeria. With the launch of a new home page, VConnect has established firm ground in the online business world. The new homepage is in accordance with the company’s new promise to their customers, merchants and buyers. Commenting on the launch of the new homepage, General Manager VConnect, Mr. Deepankar Rustagi, said: “With this new release, the merchants’ stores and products receive a whole lot more visibility on the platform. “And there are a lot more changes than just the home page. Each merchant’s webpage and URL can now be fully customized as per their preference. There’s even a whole lot more for users. “As you get on the website the new homepage showcases an array of products, the newly arrived and the trending categories. Users can now easily navigate to the products they need. “The search experience has also been improved in terms of speed and relevance of results. The website promises a personalized experience on the site, based on the user's interests and browsing history. VConnect has also integrated an online payment system along with an easier checkout process to extend the convenience it already provides”. Furthermore, Deepankar stated that the company’s long term vision is to connect buyers and suppliers; providing convenience to buyers and growth to suppliers while boosting the Nigerian economy. It will be recalled that VConnect started as a local search engine, providing users with information about businesses. Today the company has grown into a strong online marketplace, bringing convenience to buyers and sellers alike. [news_box style="2" display="category" link_target="_blank" category="74" count="10" show_more="on" show_more_type="link" header_background="#dd7a7a" header_text_color="#000000"]

  • ‘Online shopping has gained momentum in Nigeria’

    ‘Online shopping has gained momentum in Nigeria’

    Nigeria’s leading Online marketplace, Konga.com, no doubt is set to revolutionise the face of e-commerce industry in Nigeria. The multiple award-winning company, growing rapidly with over 1000 employees and more than 17,000 registered sellers was founded in 2012 by Nigerian entrepreneur Sim Shagaya with the guiding mission to become the engine of trade and commerce in Africa.

    Kunle Oguneye, the Marketing Director of the Company, in this no-holds barred interview, opens up to Jill Okeke on the many challenges and the future of online shopping in Nigeria, the expectations of customers, the company’s latest business initiative, Self Fulfill, the edge the company has over others, and other things.

     Tell me about Konga’s journey in Nigeria.

    Konga was founded in July 2012. The founder has a vision that Africa’s socio-economic malaise can be transformed if we start trading among ourselves. What trading can do for the whole continent is that it can stimulate economic activity. It can also foster peace. It is highly unlikely for two people to fight if they are doing business with each other, much more, if the business can encourage employment and economic growth. In its business, Konga realised that it cannot warehouse every product it has in its website. Though we have a massive warehouse in Isolo, we can’t replicate that all over the country. In the last one year, we have a business model where about 20 percent of the products on our website are owned by us. And the 80 percent of other products are third party sellers.  A seller of any product can come and list with us free. They, however, warehouse their products and when the order comes through our website, we send it to the seller with the buyer’s address. When the transaction is done, the seller decides on how to deliver the product which we call Self Fulfill. Under the concept, the seller could have interaction with the consumer. This is because the volume of business is too much that Konga cannot handle it alone. The other sellers can use our services to deliver if they choose.

    Konga was founded in 2012, how have you fared?

    We are forging ahead. The challenges of the Nigerian landscape are there and are significant. We must not underestimate the challenges of getting goods from one point in the country to another. That is by far the biggest challenge we have. Beyond that, we have a wonderful website, we are attracting traffic. We are communicating our value proposition to Nigerians and they are embracing it, but at the end of the day, somebody in Maiduguri may order something for someone in Lagos and they expect it immediately, but because of poor road network, fuel scarcity, etcetera, it becomes problematic. However, it’s a challenge we have embraced.

    How long does it take to get a delivery to someone in Enugu?

    We commit between one to five days, but Nigerians want you to get it to them the same day.

     How do you compensate consumers when you do not meet the delivery date?

    Well, the customer does not have to take it. He can cancel and get his full refund.

     How many days does refund take?

     It is an immediate thing.

    Sometimes you find prices of goods cheaper at Konga, is it because those things are copies of the original?

    That is not accurate. The branded things we sell are genuine. We deal directly with most manufacturers, the volumes we do are quite significant. Our registered sellers do not have to pay rent, electricity, so all that bring the price down.

    What do you mean by registered sellers?

    Those are third party sellers who are registered with us and use our platform to sell their goods. So, currently we have 17,000 registered sellers. The number keeps increasing. We have helped a lot of them dramatically. Someone who is selling from Tejuosho Market can only sell to the people that go to the market, but all of a sudden you are selling to people from all over the world. We have given them reach, access to a very wide market.

    This is a wonderful initiative that I believe has empowered sellers, but where do you make your money to run Konga?

    It is through commissions on each sale from the seller. On the seller’s arrangement, the price is set by the seller. The seller does not necessarily have to have stores but the seller could have warehouse to store the goods. It is important to say that Konga prices are cheap because we have direct link to manufacturers. The third party sometimes has direct relationship with manufacturers. Prices at Konga.com come cheap also because many of the sellers don’t have to own shops, buy diesel/ petrol, pay authorities and all the logistics of owning shops. Because of the unpaid costs, they can reduce their prices on items purchased on Konga.

    How do you monitor the registered sellers on your platform to ensure quality?

    If sellers list certain brands for sale on the Konga.com website, they may need to send us samples of those products, receipts to prove that they sourced it from original manufacturer, pictures and testimonials. These are on certain brands. At the end, if there is any report from buyers that what was exactly purchased was not what was delivered to them or advertised on the website, we can sanction the merchant. We accept returns in spite of the challenges inherent in it. This includes tearing the package which reduces the value, among others.

    Apart from the sellers’ initiative, what are the other features that stand you out from competition?

    There is relentless pursuit of excellence within the organisation. We are committed to serve consumers better. We also ensure that we get the product to the customer as quickly as possible. We are constantly working against the challenges we face. Just recently, we started air freighting between cities; this is to ensure that packages arrive sooner, avoiding the complexities of bad roads. We have a focus of being a one store shop so that the consumers can find everything they are looking for in a store; we sell cement, livestock, gravel, cars, clothes, phones, shoes and home appliances etc. we have a wider range of products than the competitors. We are not only selling to the retail market but to whole sales. We are making it easy for schools, hospitals and institutions that make bulk purchases.

    What forecast then do you have for brick and mortar shops?

    Brick and mortar will always be there. The online shop is a complement. It is like telephone as a means of communication which is good but at the end we still want to see each other. E-commerce is another channel of commerce which allows a distanced person to enjoy the same experience with consumer at the centre.

     Nigerians are still more in tune with the brick and mortar shops. They want to see and feel before buying. Does this pose a challenge to you?

     Online business is a generational thing. People below a certain age have grown up with the internet and they are comfortable buying but certain people still want to touch and feel. The young population embraces it.

     There has been some news recently about Self-Fulfill, can you tell me what this is all about?

     In the past, we directed our sellers to use our own logistic services which has its advantages and disadvantages because we do not have enough of the network so it added delays into the system, but today sellers can wake up, get in their vehicles and drive to anywhere to deliver an item or use courier services of their choice.

     How does Self-Fulfill make online shopping easier for both seller and buyer?

    Quicker delivery, primarily, and direct engagement between the buyer and seller.

     What volume of sales do you make in a day?

     We cannot share that, but between 2012 and now we have made over 1,000% growth and that continues to grow.

     What are the things people buy most online?

     Purchases of phones, laptops, electronics. Those are easier to sell because there is no price variance. Clothing is actually the biggest but a lot of other categories are growing.

     What feedbacks do you get from buyers?

    They want to have free shipping on everything. They look for the lowest price possible. They want fast delivery, that’s by far the biggest thing they want, prompt delivery.