Nigeria is a country with a lot of potential for eCommerce. In fact, the country has been ranked as the third largest online market in Africa and is expected to grow exponentially over the next few years. How can you start your own eCommerce business in Nigeria? Read to find answers.
What is an eCommerce business?
Ecommerce businesses are those that sell products or services to consumers online but increasingly also through mobile commerce apps. The e-commerce industry is estimated to be worth over $2 trillion in 2018. In other words, it’s an industry with huge potential for growth and success. It is a business that has a wide range of potential for growth and success.
Facts and Stats about Ecommerce in Nigeria
Nigeria is a country in West Africa. It has a population of 190 million people and a GDP of $500 billion. The retail industry in Nigeria is growing at an annual rate of 20%.
- Nigerians spend an average of $936 on their shopping spree every year, which is higher than the global average.
- Nigeria is one of the fastest growing eCommerce markets in Africa, with a growth rate of 20% annually.
- Nigeria’s e-commerce market size is expected to reach $800 billion by 2024
- Jumia is the biggest player in the Nigerian eCommerce space with a revenue of $22m in 2021
- Nigeria is the 33rd largest market for eCommerce with a revenue of US$6.9 billion in 2021
Why Start an eCommerce business in Nigeria?
Nigeria is a country that has a lot of untapped potentials. The country’s population is growing and the economy is expanding.
The eCommerce industry in Nigeria is thriving, with many people selling online products and services. This makes it an ideal time to start an online business in Nigeria.
There are many benefits to starting an eCommerce business in Nigeria, including increased revenue, lower costs, and better customer experience. One of the main reasons for this success is the high number of internet users in the country.
Steps to Start eCommerce Business in Nigeria
Do market research to find the right product/niche
eCommerce is a rapidly growing industry in Nigeria. It has been on the rise since the introduction of smartphones and internet connectivity. With the introduction of eCommerce, there are numerous opportunities for entrepreneurs to start their own businesses. There are also numerous challenges that entrepreneurs need to overcome in order to successfully run their business.
The key to success for any entrepreneur is market research. Knowing what you want your product or service to be will help you find the right product or niche that will help you succeed in your venture.
Successful entrepreneurs know that the key to success is finding a market that is yet unsaturated. If you find a niche in which the demand for your product is high and the competition is low, then you can make money. You don’t have to be Amazon or Walmart; you can find something and sell it to your own niche market – and make bank!
Nigeria’s eCommerce space is still very green for businesses of all scales, only if you can properly explore it.
Create a Business Plan
To make your eCommerce business a success, you need to create a business plan. A business plan is not just about listing out your goals and what you want to achieve but it also includes the resources that you will require for your venture.
The first step in creating a business plan is to understand what you want from the venture. What are your goals? What are the milestones that you would like to achieve? How will you measure success? What is the timeline of this project?
It’s important to have all these questions answered before starting on anything else. It’s also important to do some research on what other people have done in similar ventures and how they did it.
A business plan is a powerful tool that can help you get your venture off the ground and help you make better decisions in the future. It is a comprehensive document that includes everything from market research to financial projections and more.
The steps involved in creating a business plan are:
- Researching your market;
- Developing your product;
- Establishing your target audience;
- Creating your marketing strategy, and finally,
- Creating your financial projections.
Setup your Online Store
With the rise of eCommerce, there has also been a rise in people wanting to start their own business on the internet. However, it can be a daunting task for someone who doesn’t have any experience in running an online store or marketing products online. To create your eCommerce website, you need to first decide on an eCommerce platform to power your online shop. Some of the top eCommerce website software are:
Shopify is a hosted eCommerce platform that provides an easy-to-use interface for creating an online store. It includes pricing, marketing and analytics tools, a mobile app, and personalized branding opportunities. Shopify can be used in conjunction with Facebook’s self-serve e-commerce advertising platform to drive traffic to your website.
Woocommerce: In this day and age, it is difficult to compete with big businesses that spend millions of dollars on advertising. With woocommerce, you can create your own self-hosted online shop without having to break the bank.
Woocommerce VS. Shopify: Which is best for your online store?
Shopify is a platform for building e-commerce websites, while WooCommerce is a WordPress plugin that helps you build your own e-commerce website.
Both platforms have their pros and cons. Shopify is more expensive than WooCommerce and they’ve both been around for quite a while now.
However, WooCommerce has been growing in popularity in recent years and it is currently powering over 65 percent of online shops in Nigeria. So if you have a thin budget, I recommend you go with the Woocommerce + WordPress solution to develop your online store.
Ecommerce platforms are the foundation of your online business. They provide the infrastructure for your website and all its features, including product listings and shipping options, payment gateways, shipment tracking, customer support, and more.
To create your eCommerce website you need a domain name plus eCommerce web hosting and the necessary expertise to create a professional-looking eCommerce store, which is why i recommend you use the service of a professional eCommerce web developer. At web design Nigeria, we can create you Woocommerce or Shopify store with professional design in 7 to 10 working days. Talk to one of our eCommerce experts today at 08114900422 to discuss your project.
Get a Secured Payment Gateway
A payment gateway is a platform that allows authorized users to make electronic payments for goods and services. It is used by the merchant (seller) and the buyer to complete a transaction on partnering merchant channels.
With a payment processor, a secure way for both parties to transfer money, goods, or services in return for payment is much ascertained. The buyer sends their information through an online form or using an app, while the seller confirms the transaction before it goes through.
It’s not just about getting a payment gateway that is secure. There are other factors to consider when choosing your payment gateway.
Some of the factors you should consider before selecting a payment gateway for your eCommerce website are:
Security: The most important factor to consider when selecting a payment gateway is security. You should make sure that the payments are safe and secure; this is especially important if you have sensitive information on your website such as credit card details.
Compatibility: Another factor to consider is compatibility with your existing website – this will allow users to use the same account on multiple devices and platforms.
Cost: Another factor to consider is cost – you should go for a low-cost option if you’re on a tight budget, but be careful as some low-cost options may not have the features you need.
Support: Due to the fact that you will be dealing with a third-party service, it’s important to make sure they have a good reputation for delivering what they promise.
Considering all of the above factors, we recommend you use any of the top payment gateways in Nigeria such as Paystack, Flutterwave, Squadco by GT Bank, Voguepay, Interswitch, etc.
See a complete list of top payment gateways in Nigeria here.
Create a Marketing Outreach Strategy
Ecommerce is the online version of a physical store. It requires building up a customer base with the ultimate goal of driving traffic to your website. There are many marketing strategies that can help you achieve this goal such as SEO, social media campaigns, content marketing, PPC (Pay Per Click) advertising, WhatsApp marketing, and email marketing. With these methods, you can reach customers in different ways and enhance your website’s visibility.
The best marketing strategy for your eCommerce website is to drive traffic to the website through many different methods. In general, marketing strategies are a combination of online and offline methods.
Make sure to set up your social media channels and promote your website with niche content relating to your products.
Social media marketing is an effective way to drive in more customers. There are many different social media channels that you can use to share your products and engage with a potential audience. Two of the channels that have been gaining popularity are Instagram and Tiktok. Instagram has over a billion active users and posts around 300 billion images every month.
PPC (Pay Per Click) advertising (targeting and retargeting)
Pay Per Click (PPC) advertising is a form of online advertising that allows companies to pay for each click on their advertisement. This type of advertising is becoming more popular because it doesn’t require a large upfront investment.
PPC ads are typically placed on search engines, social media platforms, and websites that provide product or service information. PPC ads are also used for mobile advertising. PPC ads can be placed on websites or apps as well as in mobile apps through banners or text links.
PPC ads can also be found in email campaigns, which allow the sender to send out personalized messages to their recipients based on the recipients’ previous behaviour and interests.
Retargeting is an advertising technique that focuses on users who have visited your website before. It allows you to reach out to these users with relevant ads when they visit other websites.
Retargeting is a very popular advertising technique for eCommerce companies. This is because it allows them to show advertisements to visitors who are interested in their products and services, which can be a great way of getting new customers.
Retargeting has been used by many companies such as Amazon, Nike, and Facebook. The goal of retargeting is to increase the number of conversions by showing relevant ads to users who were looking at your website before but didn’t make a purchase.
Ecommerce SEO is a crucial part of online marketing. It helps to increase sales and capitalize on new opportunities. Ecommerce SEO is a complicated and time-consuming process. It takes a lot of time to build links, optimize for search engines, and ensure that the site is optimized for conversions.
Search Optimization efforts for your online shop include (but are not limited to) the use of metadata and structured data to improve search engine ranking. Data is often collected from a website via various plugins, such as Google Analytics or Google Search Console, and can include product descriptions, SEO-friendly titles, images, and more.
Online shoppers are constantly looking for new and interesting products to buy. If your eCommerce store is not up-to-date with the latest trends, you will lose out on potential sales.
There are many ways to use content marketing to boost your online sales. You can create blog posts, videos, infographics, and more that will attract new visitors. Content marketing also helps you build trust with your customers and gain more credibility in the market.
Use the right software to manage your eCommerce business
There is a lot of software out there that can help you manage your online business. However, not all software is right for you. You need to identify what kind of software best suits your needs and how much time it will take to learn and use it. The three most popular types of software are accounting software, Payroll, CRM, and email marketing software.\
Work out logistics
Ecommerce businesses are looking for ways to create more efficient and effective workflows. They are also looking for ways to improve the customer experience.. One of the key aspects of your eCommerce business is logistics, which involves managing all your products, orders, and deliveries.
A logistics company is one that uses its resources to help in the transportation of goods from one point to another. Logistics plays a vital role in almost every aspect of life – from manufacturing to healthcare, education, construction, retailing, and many more.
Logistics is a vital part of eCommerce that can help to reduce the cost of goods and increase customer satisfaction.
While there are many logistics providers, they are not always the best choice for eCommerce businesses. The following are some points to consider before choosing a logistics provider.
Cost: Logistics providers charge different rates according to their services and capabilities. Some offer a free trial period, while others have fixed rates for specific tasks like picking up or delivering goods. It is important to know what the logistics provider offers before committing to one.
Communication: Some logistics providers offer phone support while others don’t, but you should make sure that they have a live chat feature in case you need it at any time during your transaction or delivery process.
Experience: You should check with your preferred logistics provider to see how many successful transactions they’ve completed in the past.
Arrangement of Items: Some logistics providers will only offer to deliver whole items, while others may divide them into boxes and provide you with a packing list. This is something you’ll want to check on before you finalize your transaction.
Prices: Be sure to verify the price of shipping with your chosen logistics provider. If you receive a quote that seems too high, be sure to shop around for a better deal before finalizing your transaction.
Some logistics providers will only offer to deliver whole items, while others may divide them into boxes and provide you with a packing list. This is something you’ll want to check on before you decide to go with a certain provider.