A toy entrepreneur’s roadmap to e-commerce as a venture in Nigeria

The world has drastically shifted from a traditional mode of operation to fully embracing digital schemes and the opportunities within its precincts. This has given rise to the development of diverse sectors, including e-commerce, which enables toy vendors to trade online. More people are driven into online-oriented platforms to buy and sell due to increased mobile penetration and internet connectivity, which ultimately amounts to accelerated revenue from the industry.

For clarity, e-commerce (electronic commerce) follows the buying and selling of goods and services with the exchange of funds over the Internet. Typically, this happens with or without proximity. An e-tailer can sell to people scattered around the globe with the provided logistics. This form of business is powered by the advancement of technology, including websites, social media, and mobile applications.

The COVID-19 pandemic has significantly impacted the growth of e-commerce, which had previously experienced moderate engagement rates, particularly with giants like Amazon and eBay. Due to extended home confinement, demand for products and services surged, leading to a surge in online businesses. Toy vendors created platforms like Instagram for sales. Online stores allow customers to purchase and receive products at their location, with conditions specific to e-vendors. The US Census Bureau estimated $284.1 billion in global e-commerce sales in 2020, which has since exceeded this figure due to widespread adoption by physical businesses.

The growth of e-commerce and technology has led to numerous challenges, affecting global business operations and causing concern for business owners worldwide, including:

Limited product-consumer experience:

E-commerce is a digital platform where products and services are sold online, with customers viewing and analysing the service from a limited scope. This differs from physical purchases, where customers can directly feel the item. For example, a customer may purchase a large toy vehicle online but receive a smaller one, leading to disappointment and unmet expectations. This is particularly problematic in the toy industry, particularly in Africa, where customers often have to pay to return undesired products, reducing confidence levels in toy companies.

Banking and payment constraints:

E-commerce payment platforms are inadequate and clogged with difficulties, leading to confusion for buyers and sellers. Consumers often demand “cash and carry” payment methods, which can result in losses for vendors and toy business owners. Poor data, internet connectivity, and reduced consumer confidence contribute to the challenges faced by the e-commerce toy industry.

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Regulatory concerns:

E-commerce is plagued by unregulated policies, allowing anyone to operate without proper checks. Fraudsters often scam victims, stealing money and reducing customer confidence. To combat this, strict online censorship from associations and an accreditation board for merchants are needed. This would help protect consumer trust and reduce negative perceptions of the industry.

Threats of technical and cybersecurity:

E-tailers store consumer data and transactions on their websites, enhancing the purchase experience and return-customer strategy. However, weak cybersecurity can lead to fraudsters hacking, causing business disruptions and irredeemable losses. Hacked sites can also steal consumer card information, affecting the brand’s reputation.

Solutions

Customer trust and satisfaction:

The challenges above highlight some of the root causes of declining trust and confidence among consumers. However, with excellent customer service, effective communication strategies can be put in place to offer clear purchase and easy return policies, display customer reviews and testimonials, and ensure high-quality product images and descriptions are published. This would build a strong brand reputation, and if done consistently, consumers would now find your brand reliable and customer-centric, leading to secured trust.

Media literacy:

Media literacy is the ability to access, analyse, and evaluate media content and processes. It benefits both buyers and sellers in e-commerce by enabling critical evaluation of information, reducing scams, and enabling consumers to research and compare products effectively. E-tailers can create more effective marketing strategies by understanding their competitors’ tactics.

If media literacy is fostered by implementing it as a compulsory course in fundamental institutions, the e-commerce environment becomes more transparent, secure, and user-friendly. Educated consumers are better equipped to navigate the complexities of online shopping, while businesses can benefit from a more informed and trusting customer base.

Regulatory revamp:

Nigeria’s National Information Technology Development Agency Act (NITDA) and Nigerian Communication Commissions should revamp their e-commerce policies to ease challenges faced by e-tailers. Implementing accreditation stamps on e-tailer websites would gain trust and confidence from consumers, reduce online scams, and positively impact the e-commerce environment. This would require rigorous verification processes from these bodies.

Data connectivity, infrastructure, and advancement:

Nigeria’s e-commerce needs to implement AI systems for 3D product trials and establish robust data infrastructures for a stable, high-speed network. Advanced digital security, including strong algorithms for external protection and two-factor authentication systems, is also crucial for the smooth operation of payment platforms and AI-related technology.

The influx of e-commerce since the COVID-19 pandemic has transformed the industry, presenting both opportunities and challenges that strain the general operations of business owners therein. It’s therefore needed to address the myriad of challenges facing the industry by capitalising on operational efficiency and delivering superior customer experiences so success can be driven in the evolving landscape of the industry.

Mrs Omotola Lawson is a Toy Distribution Entrepreneur and Government-certified Instructor in Nigeria.