Business Ideas

PROBLEM AND PROSPECT OF E-COMMERCE IN NIGERIA

PROBLEM AND PROSPECT OF E-COMMERCE IN NIGERIA

NATURE OF E-COMMERCE IN NIGERIA

The advent of the internet network has evolved diverse means of doing business. It has connected the globe into one unit and enhanced the communication and exchanges of not only information but also of buying and selling  of goods and services over the internet.

Therefore E-commerce can be defined as the application of internet facility in the process of buying and selling of goods and services over short and long distances. E-commerce involves the use of technology such as the internet, , fax, e-payment, money transfer systems, telephone,  e-data inter-change in conducting the business of buying and selling of goods and services.

Ecommerce enhances  direct access to overseas markets and fosters the globalization of commercial activities; It connects domestic and foreign companies and easily provides an easy means of doing business over the internet-commerce has led to the development of new ways of doing business.

It facilitates the business transaction of investment, payments, purchasing, supply, research etc. over the internet.  Electronic commerce consists of all commercial transaction that is concluded over an electronic medium and the internet.

The potential of the internet to connect different parts of the world in market place using global technology and information exchanges exact a great and positive significant impact on the developing economies like Nigeria. E-commerce has enabled an overwhelming   increase in the volume of trade and economic activities existing on-line. The total level of electronic commerce business transaction carried out over the internet currently within this period has been appreciative and growing at a rapid pace. E-commerce extends beyond the use of electronics and commerce added together.

It is a complete new way of doing things. An entirely new way of conducting business over a medium that has changed the old pattern of conducting   business. E-commerce is conceived as far more about strategy and business management than  about technology-commerce involving the use of  the internet, if  effectively  utilized for development, can become an  instruments for determining future sustainable economic growth The various  aspect of   e-commerce can be  grouped  into two parts .

E-merchandise: which involves the selling of goods and services using the electronic process and transferring goods through distribution channels, such as using the internet to shop for items as cloths, hardware, travel, book, flower groceries, tickets, music, or gifts?

E-finance: This consist of the application of technology including the internet to conduct transaction involving banking, insurance, financial service , use of  debit cards, smartcards,  telephone and internet and mortgages. The great flexibility of the internet has enhanced ecommerce, which has also influenced the traditional method of business management.

Including all the   facets of the business tradition which people are familiar with in the physical environment. And which can now be applied over the internet including online banking, investment, auction and professional services. Advertising, ordering, publishing, banking,

E-commerce entail implementing business through the use of modern communication tools such as: telephone, fax, e-payment, and the internet. E-commerce consists of not only a new technology but a new platform for international and home business and trade. However it is   still evolving. It constitutes an essential, aspect of doing business in our contemporary society.

Therefore  it is necessary for Nigerians to understand the content of  what  e-commerce is , what constitute the fundamental  challenges, and opportunities  which it holds, and  lastly the training, knowledge and skills required to conduct business using e-commerce platform and what is necessary to be done to maximize the benefits from e-commerce.

PROBLEM

1 Problem of   consumer’s confusion and apprehension of the safety involved in doing business over the internet.

2 Problem of risk associated in internet business as there exist a high level of cybercrimes which is being addressed in Nigeria.

3 The consumers are physically unable to examine the product personally

4 The problem of Online Purchasing Security

5 The cost of maintenance of hardware and software of Website for the transaction of business activity is high

6 The customers often get stoked to the business website as any problem could lead to loss of customers and business.

7 The cost of Training of online business is high

8 Problem of Taxation

9 Problem Security; There exist a high rate of cybercrimes which is being tackled in Nigeria.

10 Problem of Privacy; the level of privacy of doing business on the internet is low

11 Problem of business Profitability; Accounting for the profit often seems not encouraging

12 Problem of Content; Many works over the internet are exposed to other users who may also use the same content of the work.

13   Problem of participating in new international standards development especially when buying and selling international goods and services.

14 Problem associated with the high cost of shipping goods to Nigeria

15 The problem associated with the low use of credit cards and the low use of computers

16 The problem of distrust among Nigerians in doing online business.

17 The problem associated with the various delivery methods.

 

PROSPECT

1 There is the prospect of Reduced Prices for goods and services traded over the internet.

2 There is the advantage of a Global Marketplace for goods and services

3 There is a 24 Hour Access to market for goods and services traded over the internet

4 There is Increased Potential Market Share for goods and services in the internet because of the global market reach.

5 The Cost of Advertising is low compared to the extent of market and customer reach in the internet

6 There exist a low   Barrier to Entry for e-commerce business.

7   E-commerce leads to Business efficiency as a result of proper allocation and use of resources for profit

8 E- commerce leads to increased automation of processes

9 E –commerce   leads to the Transformation of traditional market chain; Retained and expanded customer base

10 E-commerce leads to the Reduction of operational cost

11 E-commerce facilitates the acquisition of a niche market

12 Enhances the wellbeing and education of customers, Consumer loyalty and Competitive advantage

13 E- commerce facilitates convenient shopping

14   E – Commerce offers a wide range of opportunities to investors

Information is Power!

Don’t miss any valuable information or opportunity that can change your life, business, family positively and permanently.

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Ifiokobong Ibanga

Ifiokobong Ibanga is the founder of InfoGuideNIgeria.com. You can get in touch with him on Instagram @ifiokobong. If you need a personal assistance on this topic, kindly send a message. Much Love!

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