Starting an eCommerce business in Nigeria or anywhere else is one of the many ways to earn additional money online. You may operate this business strategy anytime, even in your bedroom, without needing to buy a store.
This business concept has an additional exciting feature in that it allows you to launch an online store in Nigeria and sell your products to customers abroad. To get the goods to their intended places, you simply need to find a great way to do it.
You need to have a plan in place if you’re thinking about launching an eCommerce business. I’ll outline the exact procedures you must take to open an online store this year because the eCommerce industry is always evolving.
What is eCommerce Business?
Electronic commerce, or e-commerce, is the term used to describe the purchasing and selling of goods and services using electronic platforms like the Internet. E-commerce has emerged as a major force in business as a result of the internet’s and technology’s rapid development.
eCommerce gives companies a way to contact a wider audience and increase their customers across geographical boundaries. In addition to giving readers advice on how to launch an eCommerce business in Nigeria, this article seeks to give you a general overview of the industry.
Understanding eCommerce in Nigeria
Nigeria’s internet market is constantly expanding. This country is home to one of Africa’s largest internet economies. Nigeria has a big internet audience, which keeps expanding steadily, and has the youngest population in the world as well as the largest population on the continent.
Nigeria has one of the largest network coverages and a solid mobile communication infrastructure on the continent. 70% of people are online right now, and it’s expected that number will keep rising. In Nigeria, there are between 25 and 40 million smartphone users, according to estimates from a number of sources. Mobile devices are really utilized to access the internet much more frequently than desktop computers.
Overview of E-commerce in Nigeria
- eCommerce share of total retail in Africa in 2020–2021, by country
- Number of online shoppers in a few African nations, 2022–2027
- Nigerian Internet Penetration, 2018–2027
- Forecasts for Nigerian internet users from 2018 to 2022 extend as far as 2027.
Spending & Payments
- Internet users in Africa who use mobile payment methods, by country, 2021
- From 2017 to 2025, the Nigerian e-commerce market’s average revenue per user would be.
- Nigerian e-commerce spending, by category, 2021
- Nigeria’s projected growth in e-commerce spending, by category
- Nigeria’s 2022 market share for Visa and Mastercard
- 2020 projections for Nigeria’s e-wallet payment share by top services
- Rate of e-commerce adoption in a few African nations, 2022–2027
- Income from several African countries’ e-commerce markets for food and personal care products
- 2017–2020 Nigerian online marketplaces’ combined website traffic
- Nigerian Google Play Store’s top shopping apps 2021
- Nigerian iPhone shopping app popularity in 2021
- Increase in e-commerce in Africa in 2021, broken down by country
- After COVID-19, there will be an increase in online food buying in Africa, by country.
How to Start eCommerce Business in Nigeria
A short-term business plan won’t help you stand out in this industry, choose a business model with longevity in mind.
Selling wholesale with other people’s products will always result in price erosion because many other retailers are selling the same products.
To succeed in eCommerce today, you must have complete control over your brand, which is why we encourage you to do private labeling today.
This is not to suggest that you can’t start by drop-shipping or doing wholesale with other people’s products, but it should only be a stepping stone.
How to Get Profitable Products to Sell
Step #1: Find a Product
You can’t start a business unless you have a product to sell, and the best way to find a product to sell is to look at your everyday problems and find products that solve them. If you can find a product that solves a problem that you or the people around you have, you can be sure that there’s a market for that product.
- Start selling rare products online.
- You can also focus on selling products based on areas where you know.
- selling custom-designed party products based on special skills
- You can conduct market research using tools like Jiji and Jungle Scout to learn how much each listing earns and to determine the level of competition.
- Additionally, you may conduct research using tools like Ahrefs SEO tool to see what people are looking for on Google.
- To see what’s selling on NobleMart, Jumia, Konga, and eBay, use TeraPeak.
Step #2: Find A Reliable Supplier
The goal is to find a supplier who can provide you with the product you want at a price that allows you to make a profit, this is called private label
So What is a Private label? A private label refers to a product or service that is produced by one company but sold under the brand name of another company. In other words, a different company does the branding and marketing while the manufacturer actually manufactures the product or service and then resells it under their own brand.
Private-label products can range from food and drinks to apparel and technology and are frequently seen in grocery stores, pharmacies, and online marketplaces.
Your goal in doing private label is to be able to achieve at least a 66% gross margin on your sales. This means that if you sell something for $9 you get to keep $6
There are a few various approaches you can take to locate a supplier.
- Search for manufacturers of the products you want to sell using a website like Jiji or Alibaba. You can narrow your search by region, price, and other factors to discover the best source for your requirements.
- Attending trade fairs and exhibitions that are relevant to your product can be a fantastic way to meet suppliers and manufacturers in person and give you a chance to see their goods up close.
- Hiring a sourcing agency that can assist you in locating a supplier who fulfills your criteria can save you a great deal of time and effort because they are professionals at identifying innovative suppliers and they often charge around 5% of your cost of goods.
Ask for samples from potential suppliers when you find one with whom you’re interested in doing business. Make sure you’re satisfied with the product’s quality, then check the minimum order quantity and the price.
If so, you can go ahead and order a small quantity of the product to test the market, and once you’ve confirmed that there is a demand for it, you can move on to larger orders.
Note: When working with a supplier, make sure that every aspect of the agreement, such as delivery schedules, payment terms, return policies, and quality guarantees, is clearly stated in writing. To make sure that everything goes smoothly, it’s also critical to maintaining regular contact with your provider.
Step #3: Validate Your Products
Before making a sizable investment in inventory, you must make an effort to sell them to ascertain how well the product would sell. You can promote your samples using a variety of strategies.
- Joining Facebook groups that are relevant to your product and starting to advertise there is one tactic.
- Another option is to list your product on online retailers like NobleMart Amazon, and Jumia. This could be a great way to gauge consumer interest in your product and test out different price strategies.
- You can also list your products on other online retailers’ websites like eBay or Etsy.
- You can also use Jungle Scout to look at how well your product is selling on Amazon, do a competitive analysis, and find out which companies are leading the market in terms of sales of your product.
You should keep in mind that in this step you don’t have to make a big investment just sell a few samples to test the waters and see if people are willing to pay for your product. You can also get feedback from your early adopters and use this to adjust your product and pricing before making a larger investment in inventory.
Always test your products on NobleMart, Amazon, and Jumia first because they control more than 50% of e-commerce and have a sizable customer base already established.
Selling on sites like NobleMart, Amazon, and Jumia is the quickest method to make money, but keep in mind that the ultimate goal is to have your own branded website. If your products do well in these online stores, you should get to work on your website right away.
Steps to get started Selling on NobleMart, Amazon and Jumia
- Set up a seller account
- Create a listing for your product on marketplaces to list it. Make sure your listing adheres to its rules.
- photos with good optimization, a title tag, and keywords
- Start with their pay-per-click advertising programs because it’s an excellent technique to sell your product by running PPC adverts. The likelihood that clients will see your product increases when it appears at the top of search results for relevant keywords.
You may access a sizable client base and make money while working on developing your own website and brand by listing your product on NobleMart, Amazon, and Jumia. Remember that selling on these platforms can be difficult.
The long-term plan is to test the market, then concentrate on your own website and use your earnings to finance your brand website and register your business.
Step #5: Register Your Business
You really must take this action if you wish to launch an eCommerce business. this safeguarding your company. So, pay attention to it.
The first thing you must do is register the firm before you consider printing flyers, setting up social media profiles, and choosing the brand color. You must confirm that the name you want to use for your company is available and won’t be used by someone else.
For this, you can speak with a lawyer, who can register it. If you want to grow your business and run it for a very long time, business registration is crucial. Customers also believe registered businesses
Step #6: Own Your eCommerce Brand Website
Building an asset that you own will help you establish your brand and manage the complete customer experience.
To sell and market your products or services to thousands of people outside your immediate geographic area, you need an online store, and Noble World’s top-skilled eCommerce website builders in Lagos can help you.
Shopify is the best-supported platform if you don’t know much about technology, have the money, and want it.
You may quickly and easily create your online store using Shopify since it is simple to use. Shopify offers one of the best third-party ecosystems, and you can get plugins that do practically anything.
The purpose of having your website is to control your brand, manage the customer experience, and set yourself apart from your competitors.
You’ll be able to develop a network of devoted customers that you can market to over time through SMS marketing, email marketing, and other techniques.
Step #7: Implementing Email Marketing
The typical conversion rate for an online store is only 2%, meaning that 98% of your customers will visit your site and depart without making a purchase. By implementing email marketing strategies, you can keep these customers engaged with your brand.
The goal of email marketing is to retain customers and encourage repeat business by sending targeted automated email campaigns.
You should use these 4 automated email processes.
- You should create an email campaign for abandoned carts as your initial step. These are sent off when a client adds products to their cart but leaves before checking out. By sending the consumer an email reminding them of the items in their cart and perhaps even offering a special deal, you can entice them to come back to your website and finish their purchase.
- A pre-purchase sequence is the second email campaign you could set up. It consists of a series of automated emails sent to customers who have expressed interest in your products but haven’t made a purchase yet. The goal of these emails is to foster trust and inform the customer about your product and why they should buy.
- After the customer makes a purchase, you can design a post-purchase campaign to express your gratitude and nudge them toward leaving a review or making another purchase.
- For clients who have previously made a purchase but haven’t done so in a while, a win-back campaign can be developed to re-engage and urge them to do so.
You must build up a lead magnet in order to encourage individuals to subscribe to your email list in the first place. You can entice them to sign up for your emails by providing a discount code or free shipping.
By using email marketing, automating your campaigns, and communicating with your consumers efficiently, you can generate repeat business on autopilot.
The purpose of sending a text is to engage customers in real-time and enhance conversion rates by sending messages that customers receive immediately on their phones. The same idea applies to SMS or text message marketing.
Step #8: Content Creation
The aim is to drive free, organic traffic to your website by creating engaging, useful content that appeals to your target market.
Blogging is one method of producing content, and by starting a blog on your website, you can give practical advice, news about your sector, product reviews, or behind-the-scenes details about your company.
For visitors to your website to continue exploring it, always add a call to action in your blog posts. You can get roughly 25% of your sales from blog posts for nothing.
- Use video marketing to your advantage. By producing videos relating to your brand or industry, you may reach a wide audience, position your company as an authority, and increase website traffic.
- Implement podcast marketing: By regularly producing audio content, you can position yourself as a thought leader in your field and draw a loyal following. Podcasting is another approach to developing content and reaching a wide audience.
- By producing content for social networking sites like Facebook, Instagram, Twitter, LinkedIn, and TikTock and posting it frequently, you can gain a huge following and increase traffic to your website.
You must remain consistent, therefore create a content calendar to serve as a roadmap. Whatever works best for you can be included in this program, which can be as straightforward as one article or video per week.
You may build a huge and engaged audience by continuously creating informative and worthwhile content. This will increase traffic to your website and establish your brand as an authority.
Additionally, you’ll be able to attract people who are possibly interested in your goods, which will improve the possibility that they’ll end up becoming clients.
Step #9: Advertising Your Products
By running paid advertisements on websites like Google, Facebook, and Instagram, your goal is to quickly immediate sales.
Facebook advertisements are an effective tool for connecting with your target market and generating sales.
By setting up highly relevant ads for your target market, you can enhance the likelihood that potential customers will click through to your website and make a purchase.
Google Ads is a powerful advertising platform you can use to drive sales. If your product has high search intent, you can create ads that are triggered by relevant keywords and appear at the top of Google search results.
The exact methodology for running ads is beyond the scope of this article but feel free to contact us. By advertising on Facebook and Google, you can generate immediate sales and reach a large audience quickly.
keep in mind that these ads can be costly so it’s important to track your results and make adjustments as needed
Step #10: Focusing on Your Best Customers
Many people concentrate all of their efforts on attracting new clients, yet repeat business is what keeps any company afloat—after all, convincing a consumer to make another purchase from you is far simpler.
In order to enhance customer loyalty and drive more sales, this step’s objective is to recognize and cultivate relationships with your top clients.
Look at measures like lifespan, value buy, frequency, and average order to start identifying your greatest consumers. High lifetime value clients make frequent purchases and have large average orders. Your firm should prioritize valuing its top customers.
After you’ve identified your best customers you can start building relationships with them by providing them with excellent customer service, special offers, and discounts, or exclusive access to new products or Services
Offer your best customers a special discount that can be used at any time and a dedicated representative to handle the orders
You can also create a special Facebook/WhatsApp group where your best customers can make suggestions and give feedback on products and this will help you to improve your products and services as well
By concentrating on your best customers, you can boost customer loyalty, increase sales, and enhance your overall customer experience. By identifying your most valuable customers, you can devote resources and effort to keeping them satisfied and engaged, which will help to raise customer lifetime value and encourage a lot more repeat business.
Once you find a product and a supplier you want, First validate your product on platforms like NobleMart, and Amazon to make sure that they’re going to sell then you want to start working on your own eCommerce website as soon as possible
With the ability to broaden your reach, boost your revenue, and gain access to priceless consumer data, launching an e-commerce business in Nigeria may be a profitable and satisfying endeavor.
You can launch your company and guarantee that you are in compliance with all legal and regulatory requirements in Nigeria. Success is possible if you have the appropriate plan, are committed, and keep trying.
Implement automated email flows to retain your visitors and focus on your best customers