How to Start an E-Commerce Business In Nigeria 2024
Ecommerce is a big deal in Nigeria right now. Lots of people are starting online businesses, but it’s not easy. Starting an Ecommerce business in Nigeria can be expensive and tough. In this article, will show you on how to Start a successful eCommerce Business In Nigeria and any other countries.
In the world of business, success means making money. In Nigeria, there are many Ecommerce businesses. Some are well-known and successful, some are doing okay but not famous, some are famous but not doing well, and some aren’t successful or famous.
It’s hard to be both popular and profitable in business. Being popular brings in customers, which leads to making money.
Businesses can go up and down every day. You might work hard to build a successful business, but something unexpected can make it fail. Sometimes, just as you’re about to start making money, something bad happens.
There’s a saying: “Know your business before you start, and act like a smart businessperson.” In Nigeria, people who want to start a successful business like to remember these words.
Are you thinking about starting an Ecommerce business in Nigeria? If you are, you need to know about the challenges and costs involved.
But if all the technical stuff seems too hard, there’s another option. You can sell your products on an existing Ecommerce website as a registered seller. You won’t have as much control, but the company will handle most of the work for you. Many people choose this option because it’s easier—they just have to provide their products, and the company takes care of everything else.
What is Ecommerce business
You might hear people talk about E-commerce or E-business—they’re pretty much the same thing, just different names. Essentially, it’s about buying and selling stuff online or moving money and information around on the internet. These transactions can happen between businesses, from businesses to customers, from customers to other customers, or from customers to businesses.
Before you jump into E-commerce in Nigeria, think about what you want to sell. The more you sell, the more money you can make. It’s important to focus on things people really need so your business stays successful. Research what people like to buy online.
While there are plenty of other online businesses in Nigeria, if you think E-commerce is the way to go to boost your business and make more money, then go for it.
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Did you know that in 2014, a study found that 63% of Nigerian internet users had bought something online? This shows that E-commerce is becoming really popular in Nigeria.
How to Start & Costs of E-commerce Business
Once you understand what it’s all about and you’re still determined, trust me, there are a few important things you need to know about starting an e-business in Nigeria. This includes the essential stuff you need to buy and how much it will cost you.
Remember back in school when we learned about Economics? We talked about wants versus needs, looked at Table of Contents, and learned all sorts of other things. Well, now is the time to put that knowledge to use.
Let’s talk about the things you absolutely need to start an eCommerce business. This will help you understand all the setup and running costs if you’re thinking about starting an online business in Nigeria.
A. You need A Website
You know you need a website to start an online business, whether it’s in Nigeria or anywhere else.
Even small businesses in Nigeria need a website to tell people about what they do.
If you can build websites, that’s great! It’s getting cheaper. You’ll not only make a website, but you’ll also get cool designs from pros.
But if you can’t build a website, don’t worry. It costs money, but it’s part of starting your business.
Let’s see what you’ll need:
- Domain Name: This is your website’s address, like www.yourbusiness.com. A .com domain costs around N6,000/year at TrueHost. It can also be a .ng, .org, .com.ng, org.ng domain and the prices differ but for the purpose of this article, let’s stick to .com domain name. We recommend TrueHost because they are currently this site and they actually offer the cheapest domain and hosting plans.
- Hosting: You need a hosting plan to keep your website online. The cheapest one at TrueHost is around N10,000/year, and the price doesn’t change after the first year.
- Website Design: This is where it gets exciting! I suggest Lumix Agency for a professional design. They made our website, and it’s awesome and ranks well on Google. They’ll also give you a website logo and three cool banner designs.
B. Payment integration
You’ll need a way for customers to safely pay for their purchases on your website.
The system they use to pay should keep their credit or debit card info secure.
Now, let’s talk about how much it costs to set up this payment part.
It can be tough and confusing, especially if you’re not good with website stuff. But if you got your website designed by Lumix Agency, they include payment setup in their eCommerce package. So, you don’t have to pay extra for it.
C. Register your business
Another big step is making your business official by registering it. This makes it seem real and trustworthy, not like a fake website.
You’ll have to register your company with CAC Nigeria.
Just know that the cost depends on if you’re registering a business name or a company with shares. You’ll also need some office supplies like stationery and letterhead papers.
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Registering a business with the Corporate Affairs Commission (CAC) can cost around N15,000 or more. We can help you with this process, and it’ll be done in about two weeks. Contact us for more details.
D. Office Equipment
Actually you can run your e-commerce business from the comfort of your house, which is one of the major advantage of this business, nevertheless you can also have a physical outlet or shop if you have an interest in that, could help build trust in customers if you are just starting out.
E. Dispatch Riders
Also known as delivery riders, you will need their services to make delivery of your goods to your customers easier. You can also purchase the bikes yourself and employ riders to do the delivery for you, this is totally upto you.
F. Advertisement
How can you get noticed without putting your business out there? Just take a look at platforms like Jiji, Konga, Jumia, Kaymu, and OLX. Without advertising, they wouldn’t be as big as they are today. One of the biggest keys to a successful online business is hitting that advertisement button.
Start advertising now and see how people start noticing and promoting your business as you grow stronger.
You can advertise on Google and Facebook, or target specific audiences by advertising on business or tech blogs in Nigeria. Advertising your e-commerce website lets people know you exist and brings in visitors who might become customers if they like what they see and your prices convince them.
Don’t forget, you can also explore advertising opportunities with WhatsApp TV channels or TikTokers with reasonable views. It’s another way to reach your target audience and expand your business’s reach.
As for the costs, on Facebook, you can reach up to 3000 people with just $1 to $2. But remember, people want to see proof, so keep advertising until you outshine the competition. It can be expensive, but it’s worth it.
G. Other Costs
What about the money you’ll spend on getting products to sell? And don’t forget about paying for product photos and hiring temporary staff, among other things. Before you jump in, it’s smart to have some extra money set aside for unexpected costs. Let’s avoid going overboard with our budget, okay?
Here’s something to think about: because of the costs and the challenges involved, you don’t have to do this business all by yourself. Remember learning about Sole Proprietorship and Partnership? If you can’t handle everything alone, consider teaming up with someone else!
In Conclusion
Don’t expect to hit it big in your first year or even within a year and a few months of starting out. If the costs start piling up, seek advice from experienced business folks who’ve been successful for longer. They can guide you on which parts of your budget you can trim if needed. Another option is to find a partner who believes in the business and is ready to support it.
Just because you see big e-commerce players like Konga, Jiji, OLX, and Jumia splashing huge sums on TV and radio ads, doesn’t mean you should follow suit. Timing is key when it comes to advertising.
