Ecommerce in Nigeria – motorcycles, tuk tuks and vans to deliver goods and collect funds

An article in the Financial Times (May 14, 2013) describes ecommerce companies in Nigeria like Konga.com and Jumia.com, that permit internet ordering of goods, delivery to the customer and collection of money on delivery. Given worries about fraud, Nigerians prefer to pay on delivery. But given the lack of reliable delivery, ecommerce companies are creating their own delivery systems using motorcycles, vans or tuk tuks. The competitiveness of ecommerce is heightened by the high retail real estate costs in cities like Lagos, even as the size of the middle class grows. Can companies like Amazon extend their capabilities to develop affiliates in Nigeria or is the ecommerce supply chain in Nigeria different ? Would you expect the evolution of professional couriers who will deliver and collect funds for many ecommerce companies or would you expect private courier services to remain the norm ? How should branded manufacturers react to this new channel ?

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About aviyer2010

Professor
This entry was posted in Ecommerce, Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , , , , , , , . Bookmark the permalink.

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