E-COMMERCE: How to Leverage as a Mini Importer


THE BEGINNING OF THE END FOR E-COMMERCE BUSINESS?

It broke my heart that KONGA, the second biggest online market in Nigeria is currently on the verge of collapsing in business and they are desperately in need of a buyer in order to sell off the company and go completely out of business!


And as if that was not heartbreaking enough, OLX, one of the pioneer and front runner company in the e-commerce business in Africa is Shutting down its office in Nigeria with immediate effect!

This got me to the bones. My heart bled.

And to cap it all of, EFRITIN , the fastest growing e-commerce company in Nigeria has officially collapsed and in the process of a round table discussion with investors who are desperately in need of a lifeline to recoup their money.

In the process of these sad events, Over Thirteen thousand(13,000) direct workers have lost their jobs and in dire need of a thread to hang onto.

These over 13,000 workers will automatically join the already flooded Nigerian Labour market which already has over 11.3million jobless and under - employed individuals scratching through the barrels to get a job.

 That's not the end of this nightmare still.

With this, again, shareholders, investors and relevant stakeholders in these failed companies must be licking their wounds right now, and maybe regretting and blaming themselves for ever investing in their money in these said companies in the first place.

You know what that means for fellow entrepreneurs entrepreneurs still in the industry? It will create a ripple effect in the system. 

Investors will become even more afraid and extremely cautious of how they tend to put in their money into raising start up businesses.

There will be great panic in the venture capital industry, which will do more harm than good in the long run when it comes to finding capitalists to invest in your start up ventures.

In as much it looks all gloom and unfortunate for everyone concerned but the truth is - there are lessons to be learnt from this very unfortunate occurrences.  There are always lessons to learn when unfortunate situations occur.

You see, Dear entrepreneur, business is all about SALES and PROFIT MARGIN, and Profit and Sales is a game, a game of NUMBER.

Forget about the 10milllion naira being put into Adverts on TV and radio.

Forget about the 5million naira being used to rent a paparazzi office in Lekki.

Don't put much emphasis on employing an Harvard business school graduate to come become the operational manager of your company.

Don't get too much satisfaction in being able to raise 10million dollars from investors to scale your business. It's good but that's not enough.

You know what you should care about?

Care more about SALES

Worry more about PROFIT

Forget the Fame, check the figures.

Because at the end of the day, that's what really matters.

Whether we don't know or not.....

Olx has folded up....

Konga has been sold to another company

Jumia is managing to thrive....

Am going to be explaining why?

But the lesson is that this is the time for small importers to rise up and take-up the market

Why big e-commerce companies in Nigeria are folding up.......

The reasons those businesses are folding up is because of the emergence of personal online stores and websites. 
Those companies if you understand how they work almost everything they sell is not owned by them, they have a price agreement from their suppliers then add their own profit on it before placing it on their websites. So from the profit they make they pay staff salaries, cost of ware housing and other over head running cost. What they have are two things a storage warehouse and an online marketing platform/website used for marketing products.

With the emergence of massive digital individual trainings and cheap website, those customers do not take their products to those companies any more they sell directly online themselves and supply the customers themselves building a one on one relationship directly branding themselves and their business. This is what caused the problem and nothing else. 
What those failing companies would have done is to establish a very strategic and functional purchasing department locally and internationally, that can search and enter into agreement with companies of products they sell at affordable prices so that they remain in business making good marginal profits using their already branded business name.

#BOSS

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