e-Commerce 101: How To Startup An Online Retail Business

The term e-Commerce basically means; business done over the internet. Could be buying, could be selling or a combination of both; could be a product, could be a service or a combination of both.

It’s anything that involves using the internet or web as a business medium. In other words, e-Commerce refers to internet-based companies.

This model of business was popularized by American entrepreneurs between 1997–2001 when several e-commerce businesses were being launched; this era was popularly tagged the “DOT-com boom”.

All forms of companies sprang up with e-commerce ideas; anything and everything that was done in the real world suddenly had their online versions.

History Always Repeats Itself

Fast forward to today, 12 years later, Africa is on the e-Commerce spotlight. Suddenly, the whole world is focusing on Africa and her teeming population as the next potential market for e-Commerce. Foreign investors and venture developers are flooding the continent launching the clones [imitations] of successful e-Commerce sites in America.

And because my country Nigeria is one of Africa’s most populated nations, it has suddenly become the ideal market for several e-Commerce startups like; Kaymu, Jumia, Hellofood, DealDey, Konga, EasyAppetite, SunGlasses, Vconnect, and many others. It’s now obvious we are experiencing our own DOT-com boom in Nigeria!

Being a typical entrepreneur, I couldn’t help but spot these opportunities and in this post, I would like to share one with you; how you can own a shop online FREE and start an online retail business. Don’t know about you, but I see money to be made; I see a huge business opportunity; I see a new generation of entrepreneurs –the internet entrepreneurs who would take hold of this huge opportunity and translate it into a thriving business venture.

With this growing trend comes a huge business opportunity that only a handful of Nigerians are taking advantage of. Just think about it again; over 60 million Nigerians are online and counting. These are people with problems, needs, wants, aspirations and most importantly buying power!

How To Startup Your e-Commerce Business

The traditional cost of developing an e-Commerce site is so large that most small businesses are unable to afford one. And then follows the cost of successfully marketing the existence of such site, which is also quite expensive. So what’s your best option?

Own a shop online!

There are a couple of e-Commerce sites that now serve as online marketplaces where buying and selling is done between individual buyers and sellers or corporate buyers and sellers. The popular ones are what is known as classified sites, popularized by craigslist.

Other popular examples are Alibaba, DHgate and many others. These online marketplaces are designed to showcase your goods like you would normally do in a physical store. They have huge marketing budgets that allows them reach as many people both online and offline.

A typical example and the pioneer of such online marketplaces is eBay –the world’s largest online marketplace. The success story of several eBay merchants/sellers who turned millionaires as a result of trading on the eBay platform is enough proof that owning a shop online works. eBay has its branches in so many countries worldwide, but not yet in Nigeria.

Fortunately, there is an eBay clone now in Nigeria and it’s currently the largest online marketplace for buying and selling the smart way –it’s called Kaymu. The parent company; Rocket Internet is known worldwide as the leading e-Commerce incubators and have successfully started over 100 clones of successful internet-based ventures worldwide. As a matter of fact, the eBay clone they started in Germany did so well that eBay couldn’t help but buy it over!

I have previously written about two of their e-Commerce startups in Nigeria, Jumia and Hellofood. Being an entrepreneur and serving a community of unusual entrepreneurs, none of the previous two offers a solid business opportunity like this one.

To show you how big Kaymu is, even Jumia has a shop on Kaymu. Recognizing this business opportunity, I decided to give it a shot last two weeks and opened up the online version of my boutique business on Kaymu. Guess what? I sold 3 shoes within the first week I listed them on Kaymu auctions!

Here’s How Kaymu Works For Sellers/Merchants

• A seller lists an item [new or old] on Kaymu for FREE, almost anything from smart phones to laptop accessories, books to rare coins, etc.

• The seller chooses to accept only bids for the item [an auction-type listing] or to offer the “Fixed price” option, which allows buyers to purchase the item right away at a fixed price.

• In an online auction, the bidding opens at a price the seller specifies and remains on Kaymu for a certain number of days. Buyers then place bids on the item. When the listing ends, the buyer with the highest bid wins and gets the item.

• In a “Fixed price” listing, the first buyer willing to pay the seller’s price gets the item.

• Arrange with the buyer a suitable delivery option such as; shipping, physical pickup or payment on delivery = sales!

Here’s How To Own A Shop Online FREE Using Kaymu

There are 2 options you can start from depending on your preference.

First, if you are a retailer who already buys and sells offline through a physical shop, Kaymu is simply your online shop to showcase what you are selling already offline. If you fall into this category, Click here to sign up for a FREE online shop

That’s what I did with my boutique business since I already own a physical store where I sell unisex clothing for male, female and kids.

Second, if you don’t own a shop offline and would like to take advantage of this opportunity by selling other people’s goods online through the Kaymu platform, follow the steps below.

• Click here to sign up for a FREE online shop
• Decide any product [new or fairly used] of your choice that you would like to sell on your online shop
• Look for a company [manufacturer], store or seller around you who would like to increase their sales [trust me, everyone does]
• Introduce yourself as an internet marketer who can help them sell more via the internet through your online shop
• Negotiate a discount on the product[s] so that you can make a profit selling them on your online shop
• Take clear pictures of the product[s] with a phone or camera to display on your online shop
• Head over to your online shop and list the product[s], the pictures and their prices so potential buyers can contact you directly via email or phone
• Arrange with the buyer a suitable delivery option such as; shipping, physical pickup or payment on delivery = sales!

Your Turn

Head over to Kaymu and click on the register link to claim your shop online, FREE!

This opportunity is also useful for readers from other parts of the world, thanks to eBay. You can adopt the tips in this unusual article to ebay. And if you are interested in the Nigerian market, shoot me a mail and we can discuss more on how to make this happen!