News: Wealth creation opportunities in e-commerce

Many people spend quality time on the social media, commenting on issues and chatting with friends. IFE ADEDAPO writes on business opportunities they can find online

A number of small businesses in the country are now on the Internet. They provide a platform where goods can be bought online and delivered to the customer’s doorstep.

A survey by Phillips Consulting shows that the local online shopping sector grew from N49.9bn to N62.4bn between 2010 and 2011, and from N62.4bn to N78bn between 2011 and 2012, representing a 25 per cent increase in each period.

The emergence of retail online outfits such as Jumia, Konga and Kaymu has also increased people’s participation in this e-commerce.

Experts observe that the present trend in e-commerce is a revolution that other entrepreneurs have also embraced.

Different sectors of the economy are using the business opportunities this platform provides to expand their services.

Source of income

Experts observe that beyond commenting on issues and chatting with friends on the Facebook, Twitter and other social media, many youths in the country can do other things that can bring in money for them while they are online.

The Chief Executive Officer, Jovago.com, Mr. Marek Zmyslowski, says that people can learn how to construct websites for companies and urges them to acquire the infrastructure and logistics required.

According to him, e-commerce in the country is still untapped although there are many players in the market.

He notes that smooth Internet connectivity and reliable payment systems are essential.

“I think at this stage, e-commerce has just been introduced and the target group is getting more interested but we are at the tip of the iceberg. In order for e-commerce to grow, it starts from the people being able to connect to the website and make their purchase but the logistics after the purchase should be smooth.”

Courier companies can diversify into e-commerce

The emergence of e-commerce companies, which also operate logistic services, has brought fierce competition to couriers business.

For instance, letter delivery, which is in the purview of couriers companies, has been taken over by transport workers and with the wide use of Internet, letters are mostly sent via e-mail.

However, experts who have observed the increase in parcel and goods delivery have advised interested parties to key into it.

Speaking at an ICT stakeholders’ conference recently, the immediate Minister of Communications Technology, Mrs. Omobola Johnson, advised courier companies to reposition and re-strategise to meet the growing demand for parcel delivery being driven by the boom in e-commerce.

According to her, there is no need for e-commerce companies to create separate logistics for delivery if the courier companies can create a value proposition that appeals to and meets their demand.

The President, Association of Courier Operators in Nigeria, Mr. Siyanbola Oladapo, says, “With the advent of Information and Communication Technology, we have realised that a lot of things are cropping up. People were sending greeting cards before but nobody sends greeting cards again. So, we too need to move with time.

“Many have been complaining of low patronage because of the ICT. But what they don’t know is that the ICT can also enhance the delivery system. Other companies are coming up with some ingenuity.”

Online retailing of books, videos

As mostly done in other countries, Jovago.com boss says online retailing of audio books and video is a potential opportunity for interested entrepreneurs.

He says, “When we talk about e-commerce, we are talking about buying and selling physical items online. That space of audio books and videos has not been exploited yet.”

Media and online retailing

Zmyslowski notes that newspapers with online presence and a huge followership can use the opportunity to sell products online.

He says, “The online version of newspapers or magazines is actually smaller than the e-commerce website that shows how forward e-commerce business is and how backward the big media players in the offline sector are. That represents a huge potential for smart flexible online media platforms.

“The media platforms in more developed markets are growing right now. When you look at New York Times and other media groups in Europe, they do not monetise or sell content. Content is just a way to bring traffic on the website because they have built media advertising agencies or their own e-commerce platforms like classified online shops that bring them money.”

Effective return policy

Identifying some of the problems the e-commerce needs to tackle, Zmyslowski says that the growth of the sector depends largely on the ability of stakeholders to handle logistics appropriately.

Specifically, he says the return policy on products should be made effective in order to ensure optimum customer satisfaction.

“E-commerce will not grow if the logistics does not work; it will not grow if the online payment is not seamless as people expect. The return policy also has to be effective.”

He adds, “If you buy an item online and it is delivered to you before you discover that it is not what you want, you should be able return it immediately and get your money or be able to pick up an alternative. This will not work if the logistics and the operations of the e-commerce are not in place.”

Source: punch

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