One of the most trending business in Nigeria is the Ecommerce business but the cost, challenges etc of starting building top ecommerce business in Nigeria is at large.
When talking about business, it really means business. Right now, we have a lot of ecommerce business in Nigeria, most of them are successful and popular, others are successful and not popular, others are not successful but popular and others fall into the category of NOT being successful and NOT being popular.
But it is very hard for a business to be Popular and NOT making some cool cash! Popularity drives in customers!
Everyday by day, there is a rise and fall in business, one can tends to build up a full fledged business but at some point, due to one situation or condition, the business falls, most times , one can be at the verge of getting the Capital and profits back then along the line, tragedy happened!
A wise man once said, “If you want to venture into business, know the business first, full knowledge first” another said, “In business talk, do not talk or act like a fool, talk and act like a businessman or businesswoman” this quotes are more popular and favorite to those who are in/looking for amazing business to venture into in Nigeria.
Are you Human? Are you a Nigerian? Do you want to venture into business? Ecommerce Business? then there are some few points, you have to consider, the challenges you will face and cost of running the business.
But wait; If you can’t handle all the technicalities in starting an ecommerce business, you can register as a merchant in any other established ecommerce store and sell your products from there. You should however, consider this option if you don’t mind giving up the total control of your store to a company.
Many people prefer this method because all the hard work is done for them and all they need do is place their products and the ecommerce company handles every other thing for them.
How to Start a Successful E-Commerce Business In Nigeria
We will not only base on the How to start, but FBL will also talk on other aspects, which includes what is Ecommerce, the costs of getting one, the challenges and many other related issue with ecommerce business.
Table of Interest
What is Ecommerce business or E-business
One can say either E-commerce business or E-business, they are mostly interchangeably but the definitions involves both of them.
E-commerce business or E-business simply means electronic commerce which is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet. These business transactions occur either as business-to-business, business-to-consumer, consumer-to-consumer or consumer-to-business.
Before going into e-commerce business in Nigeria, you must think of the product to sell. The more you sell, the more profit you make and you have to think in the line of what people really need to survive so that you will always be in business. Do a research, find out what people always want to buy online.
There are many more other online business in Nigeria but if you feel this E-commerce business will boast you and your monetary aspect up, then it is all yours.
Do you know that sixty three per cent (63%) of internet users in Nigeria had bought at least an item online, this is from a study done by Terragon group in 2014, in essence, the business is really making a lot of waves in Nigeria.
How to Start & Costs of E-commerce Business
After knowing the meaning and you are still determined, trust me, this are few things you need to know about e business in Nigeria which includes the NECESSARY items to buy and costs.
Back in the secondary school days, we were taught about Economics especially about WANTS and NEEDS, Table of Contents and many other stuffs, this is the right time to bring up that knowledge.
So we will be looking at the items that are excessively necessary for starting a Ecommerce business. This includes the total setup and running costs for anyone who needs information on how to start an e-commerce business in Nigeria.
a. You need A Website
You don’t a soothsayer to inform you that you need a website to begin E-business both in Nigeria and other parts of the world.
Even the smallest business in Nigeria needs a working official website that can be used to describe them and many more other things.
Are you a website developer? If yes, then the cost is getting lower, you won’t only get a website, you will also need massive design from professional website developers and designers.
But if you are not then the cost of building the website will attracts a lot of money, after all, that are one of your capital, so do not panicked!
Due to the rising and falling of dollar, please do well by multiplying the dollar by the current Naria black market exchange rate for example, right now, the exchange rate is N500, $9.88/yr, now 9.88 x 500 which is N4940!
*. A new website: Firstly, create your WordPress account which is free. A new .com, .org, .com.ng, org.ng website will costs up to $5-10 per year. While .ng is N13,500 currently.
*. Hosting: The hosting plan costs $9.88/yr while after a year, the renewal price is $38.88/year. This are your capital, remember to book them down.
*. Website Designing: Depending, you can visit Fiverr or any other sites, where to ask for amazing designs for ecommerce business. Which includes Website Logo With Three Initial Banner Designs
b. Payment integration
You also need payment integration that will enable customers to have a safe check out from your website after choosing the products they want to purchase.
The payment processing platform should also be secured for customers to use their credit or debit cards for the payment of their goods.
Use Paga! With PAGA, you won’t spend a dime on integration fees because it is a reliable free solution.
c. Register your business
Another important step is Business registration, make it official, make it look real and not some scamming website.
You will need to register your company with CAC Nigeria.
But have it in mind that you’re registering a business name for that amount and can increase if you want to register for a company name that is limited by shares. You will need stationary and letter head papers .
It might ranges from N10k and above.
d. Get a Small Space
Your space doesn’t mean where all the goods will be stored. You can begin from your own apartment because it is very hard for a customer to leave his/her comfort zone just to look for you.
Probably, when you are growing, you might come to understand the system more better and the get a real office space. They just need the internet to do their transaction, that is all.
Apart from the house rents, there is no other payment, it is free.
e. Office Equipment
We hope you are not planning on getting a suitable empty place for office and sit on the floor from morning till night, no na! Get up and get some few items, the price will depend on what you already have.
*. Two (2) Laptops: Like N300K for two Portable 4GB RAM, 15.6 inches display Laptops.
*. A Modem and data bundle: A modem is up to N10k while data plans includes like N3k to N5k which are monthly plans and budget.
*. A Generator: A pass my neighbor is okay for starters, cost like N50k+
*. Four Office Chairs And A Table: Not fixed price, estimated up to N150k
*. Fuel for Generator: Costs like N15k to N20k.
f. Delivery Bikes
Also called errand riders! The delivery bikes are one of the important issues facing the E-business in Nigeria. You need at least 2 riders and a helmet for both of them.
With the riders, you can also make some few sales more faster in delivery with your bikers. Although, you still need a Delivery Courier Deposit because of other states.
Getting Two (2) Delivery Bikes: The cost will depend on the way you negotiate with them and you will need at least few staffs whose salary will depend on your negotiation.
How can you reach out to people without advertisement? Look at Jiji, Konga, Jumia, Kaymu, OLX, without advertisement, you won’t hear of them today. One of the greatest and powerful key to a successful e-business is the advertisement button.
Start advertising today and watch how people will roll in and advertise them for you when you grow stronger and powerful.
You can advertise on Google and Facebook or go to more targeted audience like advertising with come business/tech blog in Nigeria. Advertising your e-commerce website will make people to be aware of your business and drive visitors which will turn to buyers depending on how your e-commerce website and price of products can convince them.
On Facebook, with $1 to $2, you can reach up to 3000 people and advertisement, people wants to see proof, so keep on advertising till, you beat others in their own game. It costs a lot money.
h. Other Costs
Where is the cost of getting products to sell? Photography costs? A contract Staff and many more others. Before you begin, please do have a backup plan which is some few extra changes for other necessary and unecessary budgets. Please NO BUDGETS PADDLING!
Hey hear this, now due to the costs, expenditures, intelligence, it is not compulsory that it is only ONE PERSON that start up this business, we were taught about Sole Proprietorship and Partnership right? so if you can afford everything, you can go on!
Why One Should Start an Ecommerce Business Now!
Cuddled from: enterpriseboom. The reasons includes;
a. Global Presence
b. Large Audience and Target Market
c. Reduction in Cost of Operations
d. Faster and more Efficient business Processes
e. Better Customer Service
f. Ease of Information dissemination
Challenges of Ecommerce Business
Before embarking on any challenge, think like a business man, do like a business man, acts like a business man! We all know that business do rise and falls, contains both advantages and disadvantages, merits and dis-merits and mnay more.
Challenges in Ecommerce business also includes other business failure and they are;
Cuddled from; startuptipsdaily
a. Failing to Plan better in Business; As earlier said, “Think like a business man” According to this wise saying “If you fail to plan, you plan to fail”
b. No much Capital and Backup plans: You really need capital and involve yourself on Partnership business.
c. Paying no attention to your business expenses: This destroys businesses.
d. Revolution: Hello business guy, don’t stay in a old fashioned way, if people start dispatching their goods to the customers using Private Jets, please also do it, or you will loss out!
e. Not recognizing competitors: Very bad, they were there, when you came and take them by storm, don’t just stay back and think, you now have all, still continue with other socialization promotions and others, because the day you make a mistake or you relent, that day might cost you your business life.
f. Bad and Poor Management: You don’t need someone to start explaining this to you! Failing to communicate very well with yourself mind, failure to interact with your workers professionally. The management team must be made of strategic thinkers with highly valuable skills that would eventually determine the business success.
Don’t think that you will make it in the first year or a year and few months of commencing. If the cost is getting too much, try to get wise words from former successful business men who are actually older, so they could advise you on the particular budget, you can cut off at any given time.
Not because of Konga, Jiji, OLX, Jumia and other ecommerce business advertised on the internet with huge sum of money on tv, radios etc, if you follow their steps, you might drop out. Advertise at the right time.