PROBLEMS FACING E-COMMERCE IN NIGERIA.
The shutdown of Effritin.com in 2017 and OLX by Naspers group as well as the acquisition of Konga by Zinox raised massive questions about how truly viable is the E-commerce in Nigeria. Jumia also is rumoured to have recorded a $61million loss in revenue. Some of the cited reasons include the high cost of doing business in the country and data rates. Some other pundits have reasoned logistics and PoDs as factors affecting the business in the country, there is however need for a research to possible solutions.
Technocrat Nigeria is a team of highly dynamic, talented and experienced information technology professionals, with a good number of performance/achievement records in the provision of services and adequate solutions to IT related problems to individuals and corporate bodies. Just as Technocrat Nigeria has grown and changed from its beginning in 2001. We have not been affected since the inception of the brand. We are anticipating that Technocrat Nigeria limited of another five years will be an even more diversified company. In the years ahead we are confident to its goals of business prosperity and economic development for all people. In thirteen (13) years Technocrat Nigeria has achieved much to be proud. Through the expertise and hard work of our employees, director, and various business Associate’
The most acceptable payment method for online transactions in Nigeria is PoD system (Payment on Delivery) especially as a default option for new entrants. Statistics showed that 70% of people prefer PoD as there have issues of differences between items viewed online and the products brought to them. Trust remains a major issue for many Nigerians, who live in fear of online fraud and will do anything to avoid using their debit card to process payments electronically.
According to data from the Nigerian Inter-Bank Settlement System (NIBSS) the year 2014 saw 1,461 reported cases of electronic or e-fraud, with actual losses grossing N6.216 billion. Drinks.ng were the first platform to relinquish the PoD system and others followed suite to improve the use of the debit card. This led to a decrease in sales and orders as certain buyers reported to have uninstalled applications and returned to the Brick and Mortar store channels. Drinks.ng however balanced this quagmire by making the ordering platform maintain pick up centres where shoppers can make in person payments, logical solution right?.
Yudala also invented a model of combining an online store with physical offline stores located nationwide. Most walk-in customers actually admitted to having checked out a particular product online but still preferred to physically visit the store to see the product before purchase.
In conclusion, the challenges facing the e-commerce Industry in Nigeria seems big but pundits believe it is surmountable. Some of the proposed solutions include a strong ecosystem, collaboration, viable reforms and policies, new technologies, respect for contracts, improved broadband penetration, infrastructure, reformed cost of doing business amongst other few could salvage what is left for the remaining players.
E-Commerce is still rapidly evolving in Nigeria, however the law has not been supportive in this regard. The law needs to rapidly evolve too. As reported by Nigerianlawtoday.com, There is urgent need for more legislative action. This will help combat the legal issues e-commerce is bound to throw up in Nigeria. A stronger legal framework will provide a more secure and robust platform for e-commerce growth just as it does in advanced countries of the world.