STARTING AN ONLINE RETAIL BUSINESS

 I bet one of the vantages that the online music streaming platforms have against radio and the obsolete CDs is the option of making recommendations of songs to users. There, I was listening to the debut studio album by American R&B super-duo Silk Sonic, composed of American recording artist Bruno Mars and all of a sudden, an American indie rock band is reeling off their song - I have got the world in my pockets. 

It was almost impossible to have the world in your pocket some decades ago. However, technology hasn’t ceased to amaze us with the possibilities that accompany it. You can now literally carry a market in your pocket too. 

With the advent of surging smartphone users and internet penetration in Nigeria, the e-commerce industry has witnessed immense growth since 2010. The e-commerce and m-commerce industries are set to record even higher growth in the future. 

Nigeria has the 7th highest number of mobile phone users in the world; 172 million in 2019. More impressively, the country currently has 128 million mobile internet subscriptions, according to the Nigerian Communication Commission (NCC). 

As large as these numbers are, they are expected to grow quite significantly. Once we account for people with multiple phones or subscriptions, the number of users drops to 56 million. By 2023, that should be 76 million.

If this statistic is just for Nigeria, now make estimates of what makes up for the entire global population. You really should make a dive into the economic power that this offers. 

Has this been tried and tested? Brands like Jumia, Jiji, Konga, and Payporte are all the evidence that you need. Like every business, there are requirements that you need to meet and that is some good business ideas, really small start-up money, and time to implement the processes. 

If you desire to own a store or business on the internet streets then you are definitely reading the right article. But how do you join this bandwagon, offer great services, and of course make some money? 

Here are some easy tips on how to start an online retail business:

It’s Brainstorm ‘O Clock 

The first step is to decide on what product or service you desire to sell online. These days, people not only sell physical products but also digital products. So, decide on a market niche. Think about who your target audience and why they will be interested in your business.  Research on those doing similar business like yours and figure out what you can do differently from what they do. 

Now think of an easy yet remarkable business name. You want your target audience to hear your business name and never forget it. That’s the goal. 

Get Legal

Now, your business sure does sound amazing but you need to secure it. Make this legal by registering it with the Corporate Affairs Commission (CAC). Registering a business name currently goes for about N10,000. This will enable you to get a  bank account opened in the name of the business and obtain other legal documents that will be required in running the business.

One thing you can close your eyes to is the practice of online payment gateways and marketplaces requiring your business to get legally registered. This is often to help combat cybercrimes and protect your interest as an online business owner. 

Let’s set up your shop 

Here is the next big step. You have the option of setting up your own website or online store. 

However, for a beginner, another good option you have is using tools that allow users to easily set up an online store without any prior knowledge of coding or website development.

 Popular tools that I would recommend are Flutterwave, Paystack, Jumia Woocommerce, Shopify, Squarespace, and more. 

Secure the bag 

How do you make sales? Get a secured gateway payment platform. The hack here is to use one that makes the checkout flow for customers extremely easy while also maintaining security. Great gateway platforms to consider are Paystacks and  Flutterwave.  

Take your time to compare the various gateways available and choose one which suits your business structure and revenues.

Map out a Marketing Strategy

Now, you have an online store but if you don’t map out a marketing strategy, your products will be sitting pretty on the shelves without making sales. 

Leverage Social Media Marketing. Set up social media handles for your business that use them as a funnel to drive your customers to your store. Invest in paid ads so as to increase the visibility of your brand. As you make progress you can also include email and content marketing. If you have contacts who have a large following on social media, you can also reach out to them to help put out content for your business. 

As you make each step, learn lessons, and figure out how to re-strategize too.