Ecommerce In Nigeria: What It Means For Your Business

In the next five years, eCommerce in Nigeria expects to continue growing at a quick rate. As it is the fastest-growing form of commerce in the world.

Modern technology has made internet accessible to both consumers and business owners.

So, this has caused a restructuring in the business model, removing middle men.

In this article, you will learn:

  • What does eCommerce mean?
  • The benefits of eCommerce to both consumer and business owners
  • Differences between eCommerce, Ebusiness and digital marketing
  • The types of eCommerce and examples
  • How does eCommerce company make money?
  • The factors affecting electronic commerce

You will get in details, everything you need to know about eCommerce business in Nigeria.


Ecommerce In Nigeria Definition

While some people see ecommerce as buying and selling of products on the web via an electronic device.

Others, as everything involved in digital/online marketing, making payments and delivery.

But we agree that commerce is exchanging goods and services across countries. Ecommerce is the electronic medium of this exchange.

So, what does ecommerce mean?

Ecommerce is the buying and selling of products or services on the web via an electronic device. These can be physical or digital products and electronic device, phone or computer.

Other definitions you will see are:

Ecommerce Guide defines it as:

Ecommerce, or electronic commerce, refers to transactions conducted via the internet. Every time individuals and companies are buying or selling products and services online, they’re engaging in ecommerce.

The term ecommerce also encompasses other activities, including online auctions, internet banking, payment gateways, and online ticketing.

Shopify defines ecommerce as

Ecommerce, also known as electronic commerce or internet commerce, refers to the buying and selling of goods or services using the internet, and transferring money and data to execute these transactions.

Ecommerce is often used to refer to the sale of physical products online, but it can also describe any kind of a commercial transaction that is facilitated through the internet.

The definitions above are all good as long as modern ecommerce is of practice


Difference Between Ecommerce, Ebusiness and Digital Marketing,

Ecommerce

It is buying or selling products or services online using an electronic device.

Example: When you sell a shirt through your website, that’s ecommerce.

Digital Marketing

It is the promoting of business on the internet to achieve a goal.

This goal could be to reach more customers, get new leads (customers details) or make more sales.

Example: When you see a sponsored post online, that’s digital marketing.

Ebusiness

Electronic business means initiating, arranging, and carrying out business processes.

It goes beyond doing business on the web as it touches other forms of private and public communication networks.

This includes marketing, sales, human resource management, and many.

Example: When a company signs contract papers with a company abroad, that’s eBusiness.

Examples Of Ecommerce, Ebusiness and Digital Marketing

You listed a shirt on your eCommerce website and promoted on social media.

Then, someone saw it and became interested, filled the shipping details and made payment.

You received your details (location, etc.), processed it and delivered in days.

The buyer goes back to your website to leave a review and you both are happy.

Here is the breakdown:

  • Digital marketing made it possible for the buyer to see the shirt.
  • Ecommerce handles his/her shopping and payment experience.
  • Ebusiness is the entire process of running promotions, receiving payment and delivery tracking.
Recommended:  7 Best Business Models For Startups With Examples

So, when you think about promotion, think of digital marketing.

When you think about buying and selling online, think of eCommerce.

When you think about entire eCommerce business process, think of eBusiness.

That explains it best.


Types of Ecommerce Business In Nigeria

There are nine types of eCommerce business in Nigeria. But for the sake of simplicity, I will only explain the popular four.

  • Business to business e-commerce (B2B)
  • Business to consumer e-commerce (B2C)
  • Consumer to consumer e-commerce (C2C)
  • Consumer to business e-commerce (C2B)

1. Business to Business Ecommerce (B2B)

When a business sells a good or service to another business, we call it business to business.

Example:

Paystack operates B2B because they help your business receive payment from buyers.

2. Business to Consumer Ecommerce (B2C)

When a business sells a good or service to an individual consumer. This is the most popular type of ecommerce business in Nigeria.

Example:

Slot is an example of B2C business as they sell electronic products to consumers.

3. Consumer to Consumer Ecommerce (C2C)

Have you ever listed any of your unused products for sale on a classified ad website?

When an interested buyer calls, you both agreed on an amount and you deliver the products yourself

The business operation between you both is C2C ecommerce.

Example:

Listing your used products on Jiji so someone else can buy for personal use.

4. Consumer to Business Ecommerce (C2B)

When a consumer sells their own products or services to a business or organization.

This ecommerce types allows an individual provides value for businesses.

Example:

Oluboba services help businesses build their ecommerce website in Nigeria.


Benefits Of Ecommerce To Business In Nigeria

1. Global Markets

Gone are the days where you can only sell to the people that walked into your shop.

Because, your business is no longer limited by your geographical locations.

With an eCommerce website, the entire world is your markets. Start selling to anybody, anywhere.

2. Reduce Cost

No more expensive shop rents, employees’ salary, and other little expenses.

The cost of creating, processing, distributing, storing and retrieving paper-based information has decreased

So, eCommerce is the perfect way to reduce cost and maximize profits.

3. Customization

Before now, businesses lose sales because the products do not meet customers’ taste.

So, a customer walks into your store, sees a shirt he likes, but only to discover that the cloth is smaller than he wants.

In most cases, the customers walk out without buying, incurring loss to your business.

But with an eCommerce website, this buyer can place order stating the size and colour of shirts he wants.

4. Always Open

No more time constraints in business, as you can now run your business all day.

Customers can shop your products 24 hours a day, 7 days a week from anywhere in the world.

5. Sell Anything

From physical to digital products and services, you can sell anything with ecommerce.

Whether you want to sell shoes, online courses or offer web design services, ecommerce is the way to go.

6. Showcase More

One limitation you will face with owning a shop is the amount of space available.

Recommended:  11 SEO Best Practices For Ecommerce Websites In 2022

You have plenty of products you want customers to see.

But because you have limited space, it forces you to keep the remaining goods in the bag.

When you own ecommerce, you can showcase as many products as you have, bringing you more sales.

Add as many products as you want to sell–your only restriction is your inventory.

7. Improved Delivery

Customers love fast delivery.

When a customer buys on your website, it sends the details to you for quick delivery processing.

So, both you and the customers can track the product(s) location?

And if you sell digital products, the delivery is immediate.

8. Ship Anywhere

When you set up your shop, you can choose to offer free shipping or flat-rate shipping.

Give customers the option of pickup, local delivery or shipping.

9. Easy To Find

Help customers find what they want by adding tags to describe a product.

Add attributes like size so customers can search for items most relevant to them.

Let customers sort products by popularity, newness, rating, or price to find the right fit.


What are the best ecommerce platforms? In this section, I will share with you popular eCommerce website builders.

1. WooCommerce

WooCommerce is no doubt the most popular among all. It’s an open-source platforms designed to work with WordPress.

And the good thing about WooCommerce is that it has no limits. So, you build and add as many products as you want.

Best: If you want a cost effective yet powerful eCommerce solution.

2. Shopify

Shopify is popular among small and medium business owners.

The interface is friendly, has social media integrations, tax calculating and payment gateways.

Best: So, if you are looking for a one-stop eCommerce business solution, choose Shopify

3. Magento

Magento is full customizable eCommerce solution used by big companies.

It has the complete features any company will need to scale into a global business.

Magento offers you lots of add-ons for user to include more features not in its core.

Best: If you are looking for a highly customizable eCommerce solution.


Limitations of Ecommerce In Nigeria

As much as ecommerce seems rosy and appealing, it also has its own challenges you should know about.

1. Security Breaches

You have heard that there is no 100% security. Ecommerce is not an exception.

Cyber-attacks have been a major problem since the internet. A minor error on your website, hackers, can pull down your years of efforts.

But here is the advantage…

It is more easy and quick to recover even if they hack your website than when they break into your shop.

So, you don’t need to be afraid. All you need is to work with a trusted eCommerce Specialist.

2. Rapid Change

Ecommerce is rapid and ever changing. So, it’s expected you keep up with the pace.

You will face the challenge of integrating new technologies with the existing ones.

You must be open to develop a system on how and when to integrate these technologies.

3. Technology Know-How

If you operate in countries with low access to education, you will struggle.

Customers will find it difficult to know how your business transactions operate.

Most out of fear will not want to pay online.

The best solution to this is to offer pay on delivery.

Recommended:  5 Best Ecommerce Website Builders For Small Business

As earlier said, all you need to do is invest in a trusted eCommerce specialist.


1. Amazon

Amazon.com, Inc. is an American multinational technology company which focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence.

Founded by Jeff Bezos and ranks as the 14th most popular website worldwide, and 3rd in the United States.

2. Taobao

Taobao is a Chinese online shopping platform. It has its headquarter in Hangzhou and is owned by Alibaba.

Jack Ma founded Taobao. Globally, it’s ranked 8th most visited website in 2021.

3. Tmall

Tmall Global is China’s largest cross-border B2C online marketplace and allows brands and retailers without operations in China to build virtual storefronts.

Jack Ma founded Tmall. Alexa ranked it as the 15th most popular website in the world and 1st in China.

4. AliExpress

On AliExpress, shop online for over 100 million quality deals on fashion, accessories, computer electronics, and more.

Jack Ma founded AliExpress. It’s currently ranked 40th in the world and 23rd in the United States, according to Alexa.

5. eBay

Buy & sell electronics, cars, clothes, collectibles & more on eBay, the world’s online marketplace.

Pierre Omidyar founded eBay. On Alexa, the ecommerce site ranks 33 in the world, and 9th in the US.


Factors Affecting Ecommerce Business In Nigeria

There are factors that affect the growth of eCommerce in a country like Nigeria.

1. Governmental Factors:

Do the leaders allow international transaction? What’s the country’s currency exchange rate?

Those in power can influence your eCommerce business via policies, tax and more.

2. Technological Factors:

Ecommerce depends on technology to operate.

Because it can only go as far as the technology available to the citizens in any country.

You should expect consumer to embrace eCommerce more if they have internet access.

3. Social Factors:

Are the people knowledgeable enough on the use and importance of ecommerce?

If they are, how many are they?

Countries with a high level of education will embrace eCommerce more that their opposite.

4. Economic Factors:

What is the economic status of Nigeria? How rich are her citizens?

How competitive are businesses in the country?

Because it also determines the rate at which your eCommerce business will grow.


Ecommerce In Nigeria FAQs

What does eCommerce mean?

Ecommerce is the buying and selling of products or services on the web via an electronic device. These can be physical or digital products and electronic device, phone or computer.

What are the types of eCommerce business?

  • Business to business e-commerce (B2B)
  • Business to consumer e-commerce (B2C)
  • Consumer to consumer e-commerce (C2C)
  • Consumer to business e-commerce (C2B)

Can you really make money with eCommerce business in Nigeria?

Yes, you can.

  • Research for an hungry market.
  • Promote and start selling your product.

Ecommerce Business Conclusion

Rather than fighting the recent change, ask, “How can I start an eCommerce business in Nigeria?”.

Because it is the new way of doing business. Be part of it for for your profiting.

Contact me now if you need to start and grow a successful eCommerce business in Nigeria.