In this article we will explain the meaning of e-business, ten problems of e-business in Nigeria and their possible solutions.
Meaning of e-business
The key word in this article is e-business. What does an e-business mean?
Electronic business is a folded word consisting of two words: e which stands for electronic and business which means buying and selling products to make a profit.
An e-business otherwise known as an e-business is the use of the Internet or the Internet for the purpose of conducting business 0. Sometimes it is used intermittently e-commerce, but it is broader and more comprehensive than e-commerce.
An e-business is more than buying, buying and selling goods, products and services through the internet. It is a combination of other business activities such as customer relationship management, electronic order processing, product and service requirement, supply chain management electronically.
It also includes other business activities such as digital / electronic marketing, content management, organizational planning and resources.
Therefore from the explanation above it can be seen that the combination of all the business activity and the addition of the value chain is done online.
To facilitate e-business, information and communication technology serves as the driving force. This is a concept with the use of a computer.
Simply put, a company that has run an online business needs a computer to perform business activities via the Internet.
Electronic businesses in Nigeria have been helped by the latest developments in the field of information and communication technology. People do not have to be physically present to make transactions.
Businesses are now engaged in the network; The buying, selling and payment activities are done electronically until the product is delivered to the customer.
E-commerce is thriving online which is an important catalyst for economic growth and development, and poverty reduction in Nigeria. It is also important in improving the standard of living of the citizens.
E-businesses are also seen as an important tool for creating employment for the youth and also to ensure that Nigeria earns high foreign exchange earnings and bring it a comfortable trade balance.
An e-business has also ensured the increased convenience of receiving payments online, maximizing trading efficiency and reducing transaction costs.
However, despite the benefits explained above, the problems facing electronic businesses in Nigeria. In this article we will explain ten issues facing e-business in Nigeria and their possible solutions. The problems are explained below.
For an e-business to thrive, there must be a website. Not just a website but a website with a verified address, phone number, email address and customer care line. Many sites that are owned by e-business owners fall into this area.
Most e-business sites in Nigeria do not have verifiable physical addresses, functioning telephone numbers and e-mail addresses. Their customer care support platforms are poor or non-existent.
2. Internet fraud
Many Nigerians have not adopted a fully electronic business business. They are suspected of conducting an online business because of online scams and online scams.
As a result, people are reluctant and suspicious to put their credit / debit card information online because of scams, scams and impersonation.
It is a common phenomenon in Nigeria that people have been defrauded of money by internet scammers who run fake businesses after uploading their credit / debit card information online for payment for goods purchased online.
Hence, people prefer to pay in cash when they receive the items purchased in order to avoid scams and online scams.
Illiteracy is one of the major obstacles to the growth and development of e-business in Nigeria. A lot of Nigerians are not illiterate.
As a result, they cannot participate directly in electronic website transactions because they cannot read and write.
The language of communication in most e-business platforms is English. Illiterates cannot sell and buy online because they cannot read and write in English.
Illiterate people cannot buy and sell online because they cannot read and write in English. Simply put, they do not have the reading and writing skills to run an online business.
4. High cost of broadband online
Nigeria has experienced tremendous growth in the use of mobile broadband in recent years. Despite this, it is known that the cost of using Internet bandwidth is high.
It affects video and audio based businesses. Such businesses struggle to thrive and grow, and eventually they may be forced to close.
5. Inability to verify the quality of items purchased online
This is true of electronics companies that sell products like shoes, bags, phones, appliances. The challenge here is that when ordering for any of these products online, you may not be able to verify the quality of the products. This makes a person doubt the quality of the product / s
Logistics is an important part of any e-business. Logistics is a very big challenge for most of the online businesses in Nigeria.
Many e-businesses cannot deliver goods ordered online to customers on time in most Nigerian cities and towns because of poor road networks. This interferes with efficient and timely delivery of products purchased to customers.
Again, there is a traffic jam that causes a delay in the delivery of goods and products to the appropriate destinations.
Nigeria does not have a standard physical address system due to poor urban and regional planning. It also makes it difficult for electronic business companies to locate customers and deliver the purchased products to them.
One of the reasons for starting an e-business is to ensure that customers can buy any product conveniently from their homes and offices.
However, most Nigerians are not aware of the possibility of buying products online at their convenient time.
As a result, it establishes the purpose of setting up an e-business website. Such e-business sites lack visitors to patronize them.
8. High cost of setting up an electronic business
Most e-businesses require high capital to set them up. As a result, the cost of logistics, transportation, Internet bandwidth, website maintenance and mail system maintenance is high.
Most e-business sites, if not properly managed, get little or no profit from the capital invested. Most investors are not patient that the business will grow and expand. They demand immediate profit for their effort. This is caused by the delay in logistics.
Also, most e-businesses do not have good and efficient payment platforms. As a result, customers can pay for the products only in shipping.
Sometimes, some products are rejected by the customers in delivery to them. This causes electronic business companies to lose high profits.
10. High cost of shipping products to Nigeria
When customers order products online, they pay for the products. The products will need to be shipped to the country from foreign countries before they are sent to customers who paid for them.
As a result, e-business owners are taking on high shipping costs that are affected by the high foreign exchange rate.
This is in addition to the cost of transporting the products purchased to customers which makes the products more expensive.
As a result, customers are forced to reject the expensive products and go for the cheaper products. This reduces the profit of electronic business companies.
Possible solutions to the ten problems:
1. The government should invest more in providing an efficient and effective postal system, transportation networks, broadband companies.
2. The government should establish and empower institutions with laws relevant to false fraud, deception and phishing and prosecute fraudsters and fraudsters online.
3. Electronic business firms need to use verified and authentic electronic payment platforms.
Electronic business owners should endeavor to use security and encryption certificates to protect customer credit / debit card information, passwords and login information from online thefts, scams and scams.
5. Electronic business websites should provide customers with customized vouchers for customer retention. They can also run customer promotions to maintain customer loyalty.
6. The government can reach an economic policy that will stabilize the exchange rate, as this has a direct impact on the cost of shipping products to the country and consequently on the cost of selling these products to customers.
7. Business website owners should make sure that they have electronic business websites that have easy-to-navigate platforms, verifiable email addresses, phone numbers and support, and active customer care platforms.
8. Business website owners should strive to educate and make people aware of the ease and importance of online business.
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