The internet makes it possible to transfer information from one person to another and from one organization to another in different part of the world. E-commerce makes it possible to engage in transactions from different parts of the world, as a result one can access a product from different market in different places.
E-Commerce bridge the gap between local and international market leading to different approach to the way business is done. The ability to connect people and to engage them in different means of going about business has several advantages to the development of the economy of different nations of the world.
The increase in the amount of information on the internet has great effects in the way business is done in Nigeria and also contribute positively to the development of Nigeria economy.
If e-commerce is sustained and well developed in Nigeria, it will promote direct retail of goods and services thereby creating more opportunity for retail business to flourish.
This will greatly improve the lots and social well being of millions by bringing in professionals, business administrators and managers thereby improving the social economic activities of Nigerians.
It is interesting to know that e-commerce, an emerging technology in Nigeria is still growing and there are many more to come from this new way of doing business. It is important for us individually and collectively to understand e-commerce both the prospects and likely challenges accompanying it.
15 Problems of E-Commerce in Nigeria
Some of the major challenges of e-commerce in Nigeria are stated bellow;
1. High cost of shipping of goods
There are several challenges involved when shipping goods to Nigeria. A major challenge is the fluctuation of the Naira. In recent years the value of the naira has been on a free fall, this makes the cost of shipping of goods to be on the high side.
Also, the cost of shipping of goods varies from one shipping company to another. It is also very important to know how long a product shipped to Nigeria, will stay before it gets to its destination.
Cybercrime is one of the major challenges affecting the development of e-commerce in Nigeria as a result of increase in fraudulent activities online. Cybercrime is defined as any criminal activity done through the internet with the intent of defrauding people of their belongings.
The rate of cybercrime in Nigeria is on the increase in the past few years.Internet crimes can be carried out any where and it effects executed in different location at a very fast rate. So many means now exist in defrauding people.
For instance, there is the possibility of hijacking phone numbers and use it to offer service illegally. Also, there are cases where people are defrauded of their e-wallet. Despite the fact that measures have been taking to curb tthis wicked act, new means of defrauding people are being deviced on a regular bases.
3. Safety Involved in Online Business
Many business owners are still in doubt as regards online business. For some, the increase in the rate of internet crimes has scared them away.
4. Lack of acceptance
Some on the online stores do not allow transactions from Nigeria. Because of the impression they have about Nigerians.
5. Inability to examine the products physically.
In this case one has to depends on the description give by the manufacturer.
6. The problem of lack of awareness.
There is the challenge of poor awareness that it’s possible to ship product to their home or office address. There is need for enlightenment by e-commerce industry and the government. Much is to be done through advertising of content and by paid advert.
7. The problem of low profit margin
Low profit can hinder the runing of websites involved in e-trade especially upcoming websites as they have to face competition with the well established online stores. In situation whereby goods a rejected, it will definitely serve as loss and even treat to e-trade.
8. Problem as regards Content
other well established retailers may as well have interest in the same product this may serve as hindrance to the upcoming retailers to have access to similar products.
A great challenge limiting e-commerce in Nigeria is the method of delivery of goods. In some cases, some houses have no address as compare to houses in developed countries.
As a result it is difficult to use the poster service for delivery of goods. Some online stores 5 have to devise means of delivery of goods thereby increasing the cost price of goods.
Online store have to compete with local stores for the price of goods. In a situation whereby both offer a product for the same price, there will be no use engaging in e-trade. Online stores have to offer goods and services at a reduced price in on other to attract buyers
11. Payment methods
Another challenge to e-trade in Nigeria is the method of payment. Majority of business owners in Nigeria are used to payment by hand. Online payment methods is still a challenge to us in this part of the world.
Other Challenges Include
12. Poor of Infrastructure
15. Fragmented market
Solutions to The problems facing e-commerce in Nigeria
The inability of the judiciary system to address cybercrime, has lead to drastic increase in online crimes. For e-commerce to thrive in Nigeria, every criminal activity done online should be brought to book. Online security should be according to best practices in the world.
The Government has to make internet facilities available and cheaper for the masses. The cost of internet facilities is expensive and not much is been done to subsidies it.
A good number of places in Nigeria is still battling with the problem of poor access to the internet. Furthermore, the cost of making of call has to be addressed.
Also, the methods of delivery of goods still depend majorly on the efforts of the private sectors. The government has to compliment the effort of the private sectors on goods delivery in several ways which include; an effective and efficient courier system that will provide delivery of goods to homes and offices. Such courier service should be affordable to the masses and also ensure that goods are delivered at the time expected. There should be good address system for houses and office.Click here to see the latest Study Abroad Scholarships and Guides
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