How to Start an E-commerce Business in Nigeria with Low Budget
One of the most prosperous businesses in Nigeria today is the e-commerce business. One beautiful feature about it is that it can run with a very low capital and while guaranteeing success at the same time. E-commerce in its definition can be regarded as an electronic means of buying and selling goods and services. It can also involve transmitting data or funds through the internet.
At the moment, there are lots of e-commerce businesses in Nigeria and many of them are very profitable and popular, while a handful of others are not really profitable but popular.
This write-up will explain a step by step approach in starting an e-commerce business here in Nigeria even with a very low budget. I will not forget to mention that in the face of the possibility to run this type of business with little funds, there are inherent challenges that you need to be wary of; and this includes the cost.
This is the most important tool you need to do Electronic business. This is so because you are relating with people across the globe. To run a successful e-commerce business, you need a space where people can reach out to you. This can be a website, Ecommerce platforms like Jumia, Facebook page, Instagram page etc
Above all, a website is highly recommended. The reason for having a website is for people to be able to contact you and know the type of goods or services you are selling. It is possible to get a low cost website but if you can design one, then your cost of starting up has further reduced. You can also get a cheaper e-commerce website here starting at $150
There are lots of products that can be sold in online stores. For you to select the right product, you need to carefully research on the most needed and affordable products to sell. You can study fashion products, electronics, health etc. Try to find out if there is a market and if there are strong competitors within that category. You can get Started here(How to Conduct a Market Research – Ecommerce)
If you want to gain recognition and patronage in Nigeria, then it is important you register your business. This will clear every doubt whether you are a scammer. You can register your business at Nigeria Corporate Affairs Commission. They have a provision for an affordable cost of registration, that is if you a registering a business name. You can get started here (How to Register a Business in Nigeria)
Since you are running a business that involves interacting with people through the internet, you really need to advertise what you do. Now, we are considering the little funds available; you can do your adverts through major social networks. Rather than connecting with people for the sake of mutual chats, introduce your business to them. It costs very little while the reach is very wide. An awesome platform to give a shot is Facebook. Check out this Video on How to run a successful Facebook Ad.
Problems in E-commerce Business
Apart from the many possibilities of starting this type of business with a low budget, there are also more challenges to it. It is however ideal that before you begin any business, you need to consider the major pitfalls that one can possibly experience. They include:
- lack of back-up plans
- ignoring the rate at which you run expenses
- Lack of good Management Skills
Doing e-commerce business in Nigeria is very complex and at the same time, dynamic. You need to make sure you are selling the right product to the right people.
It takes time and consistent effort to achieve your desired goals. Even though you start with a low budget, with time you will grow big.
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