The Chief Executive Officer, Networking in Business, Mr. Oboye Olutoni, has said that logistics and supply chain is a major challenge for e-commerce website in Nigeria.
Ninbiz platform was created to redefine e-commerce in Nigeria, as it is a fusion of social networking and the traditional e-commerce, thereby creating the ideal online market where customers’ needs are met on every level.
“Ninbiz idea came about the need to create the ideal e-commerce environment that will actually make business grow, and not just help sell their products online alone,” he said.
Speaking on the challenges, he said, “e-Commerce business in Nigeria, just like any other business, has its own challenges and those who find a way around these are the ones that have the larger chunk of the
market.
“The most common challenges faced by e-commerce business in Nigeria include logistics and supply chains or shipment, which remain a tough challenge for e-commerce websites due to poor road networks, traffic congestion and some funny customers, who will make orders with no intention of buying the goods.”
He added, “The exponential growth rate of e-commerce companies in Nigeria obviously chokes the e-commerce industry as a result, competition gets stiffer by the day, thereby increasing the number of startups that eventually die out. Due to the level of corruption and internet frauds in Nigeria, individuals are distrustful about making online payments and listing their private information online and this lack of trust of Nigerian consumers is a huge hindrance for e-commerce business in
Nigeria.”
Explaining how e-commerce platforms are of value to the Nigerian economy as well as individuals, he noted that “the effect of e-commerce in Nigeria is simply a boost in productivity for each individual and by extension a boost in Nigeria’s Gross Domestic Product.”
Speaking on the strategy that other e-commerce platforms should deploy to enhance mutual beneficial economies between the producers and the consumer or customers, he said, “The structure of most e-commerce platforms does not really support sellers building a customer base on the platform because I feel the cost of registering your e-commerce store on these platforms is too high. This definitely does not encourage their business growth and sustainability.”
