Sam Okpala, a systems engineer, who lives in Ikeja, Lagos, had been trying to sell his Mercedes 220 for a while, but had had no luck. A neighbour advised him to try OLX instead. After placing his ad on the site, he began receiving calls from all over Nigeria. Within two weeks he sold the car to a buyer who contacted him via the ad he placed on OLX.
Kemi Omotosho, a business analyst, who also lives in Lagos, recently lost a lot of weight and while proud of this accomplishment, was left with a wardrobe of clothes she couldn’t wear. She was able to sell some of her clothes via OLX, giving her a much needed cash injection to buy some new clothes.
During the course of fulfilling the Abuja sale of a Peugeot 406, Ikechukwu Madu, the buyer, and Sajoh Musa Samaila, the seller, made a connection and became fast friends through the same platform.
The accounts above show online buying and selling is becoming quite popular in Nigeria, because it provides one with an economical and simple solution to all ones complications which are related to trade or shopping like buying, selling, trading, organising, discussing and meeting with individuals around and near you.
There is indeed a strong positive sentiment towards e-commerce in the country, at least amongst Nigeria’s more than 120 million active cell phone users and more than 56 million internet subscribers. Online sales grew 25 percent in 2011 to N62.4 billion, up an additional N12.5 billion from N49.9 billion in 2010.
Lola Masha, country manager, OLX Nigeria, said the platform “is Africa’s number 1 online marketplace, facilitating trade and providing a platform for potential buyers and sellers to interact. Facilitating trade is the cornerstone of the Nigerian economy, but far more than that is the intrinsic ability to connect people, generating incomes and helping to fulfill dreams all in one go”.
According to her, OLX has become a household name for consumer-to-consumer trade, where people can discover buying and selling opportunities that can help them achieve success, earn a little extra cash or get a good bargain. In contrast to other channels, she said, it is 100% free.
Masha said once a seller uploads pictures and details of the item for sale, he can start to receive offers on the advertised products or services. Interested users, she said, will use the given contact details provided by the seller. She said using OLX is simple and can be accessed from website, mobile site or mobile app.
The country manager, who said OLX was founded in 2006, and launched in Nigeria in 2012, noted that it has diverse range of items and categories that is un-matched, from expected categories such as cars and mobile phones to rarer hard-to-find items such as vintage jewelry and furniture.
Nigeria is Africa’s largest economy and the potential is undeniable. Barriers to trade particularly trust concerns, high advertising costs and poor infrastructure prevent everyday Nigerians from cashing in on items they have in their homes. Masha said OLX’s rapid growth over the last 12 months is a testament to the value of the platform to Nigerians, saying, however, that the journey has not been easy. She said by implementing initiatives that address each of these barriers, OLX has become the number 1 online classified platform in the country.
According to her, the result of all the hard work is evident in their usage performance data. She said the number of new OLX users has increased by 400% from January this year and the number of ads posted on the site has grown 15x over the same period.
The country manager said, “OLX has achieved and maintained the position of Nigeria’s number 1 online classified website through a constant focus on improving the consumer experience and providing a truly unique offering to our users”.
She said one can publish an advertisement in 3 easy steps: 1. Select a category 2. Provide additional information e.g. a description and accompanying products 3. Provide contact details.
According to Mayokun Soremekun, business development manager, “The great thing about OLX is the sheer diversity of products and services; from job advertisements to office supplies to houses for sale and rent. You can find literally any and every thing on OLX. We once had a member advertise a horse for sale through OLX; it was sold within a week!”
Trust is a major issue especially when it comes to internet businesses. But Lola Masha, country manager, OLX Nigeria, says that is why safety is OLX’s number one priority. She said the customer support team subject every single ad posted on the site to internal checks. According to her, the most important way to combat fraud is through user awareness and as such, steps have been taken to address safety and security concerns by educating users on how to perform safe transactions. She advised users to never pay for anything until they have seen the item, always meet potential buyers and sellers in the daytime and in a public place. She also advised users to report any suspicious activity to the OLX Nigeria team as soon as possible by calling 0700- CALL- OLX- 02255659 (0700-2255-659) or by emailing [email protected].
According to her, OLX is motivated by the need to bring people together for win-win exchanges. She said the global online classifieds brand understands the benefits of creating a platform that reduces majority of the barriers to consumer-to-consumer trade and the positive impact it has on the economy in general and consumers in particular.
Masha said OLX is either number 1 or 2 in every market it operates, saying it has over 1000 employees worldwide.
“OLX is in 106 countries, including Argentina, Bangladesh, Brazil, India, Indonesia, Portugal, Poland, Romania, Hungary, Bulgaria, Panama, Switzerland, South Africa, Kenya, Nigeria, Thailand, Philippines, Pakistan, Kazakhstan, and is spread across 40 unique languages”, she said.
According to her, “There have been about two million listings on OLX.com.ng till date”, she said.
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