Konga is on its way to profit, according to Kinnevik

[Oluwasnipes]

@Ahmed

focus on having a fast delivery network at least a 24hrs service.

This is not the core problem of these marketplaces but this👇

24-48hrs, if its not what I ordered, I can be able to return and be refunded within same time. Nigerians love convenience.

Delivery time will not boost trust but quality product and at best quality servic.

[shegsade]

@Nwabu

If you want to reduce delivery cost for markets outside Lagos then do bulk delivery to outlets in shopping malls and let customers go pick it up from there.

That totally defeats the convenience of online shopping, doesn’t it? As a customer, if I have to leave my house to go somewhere to pick up my stuff, then why don’t I just go to the market and buy it in the first place?

[Nwabu]

@shegsade

If you want to reduce delivery cost for markets outside Lagos then do bulk delivery to outlets in shopping malls and let customers go pick it up from there.

That totally defeats the convenience of online shopping, doesn’t it? As a customer, if I have to leave my house to go somewhere to pick up my stuff, then why don’t I just go to the market and buy it in the first place?

Its not mutually exclusive… Nobody is saying an online shopping service should stop delivering to the home. We are saying create CHEAPER OPTIONS for delivery. Indeed, apart from being cheaper collecting goods from an outlet may even be more CONVENIENT for some like Office workers in Lagos who don’t get home to well past 7-8pm.

Again, this is nothing new. Nigerian entrepreneurs before them were profitably buying goods on ecommerce sites abroad on behalf of customers and having them come to outlets to pick it up.

[shegsade]

The fact that it’s not new doesn’t mean it’s convenient though. I don’t know that this necessarily helps establish more trust as well If I’m already skeptical about your products and you’re offering the same type of delivery service ASOS is offering me and for the same item then why shouldn’t I just buy on ASOS?

And I’m not trying to brush that idea aside. I think it’s a good one. But it should be an option the customer can decide to opt for, especially if it comes out to be a bit cheaper.

[Nosaaaa]

@Lamidi_b_a

If I want to buy a tv, i’ll go to a samsung, LG or sony store. If I want to buy clothes, I go to asos, macys or zara. When the dollar became crazy, I got family in the abroad to help. Also, for clothes, I have a couple friends who are “fashion designers” who I patronize from time to time.

I think this is the real problem. The products on both platforms are not what the people want, i.e. it’s all razz. That’s why phones are the biggest sellers online.

[Romeabout]

Well, you can ask Merchants randomly where they get the most sales and the answer would be Jumia. Jumia has been focused on selling since its launch. They hardly put money behind things that don’t affect their bottom line. Konga at one time were hiring tons of developers, building out features that didn’t really draw in more customers but Jumia only focused on sales. Did you know Jumia has a 10,000-man strong sales force called J-force who sell on a commission basis for them? I don’t have data but I believe the 70% market share gist.

[adeohluwa]

i wont point a finger at anyone really i have always known that the e-commerce business any where in the world is not the most efficient or profitable, Amazon had to accquire Airplanes to lower shipping costs and still i bet they make more from Amazon Web Services … thank God for AWS!

E-commerce requires that you continually spend a whole lot on paid advertising
You keep inventory of goods that you havent validated demand for
That you hire a lot of people and have warehouse et.al

all that overhead for not much in return

it goes back to the old women selling sachet milk on the corner store that make N5 on a pack

Not to mention Internet Penetration In Nigeria is low and The People have low disposable income and so arent prone to impulse spends like it is in US,UK.