Ebenezer Owusu, an Operating Associate at Tisu (an online platform for buyers and sellers) is one of the players in the e-commerce sector who is very optimistic about the promising future of e-commerce in Ghana even though the market share is currently low.
He, however, projects that it is only a matter of time before it increases due to growing technological advancement of the populace.
He said “e-commerce is gaining grounds in Ghana. Now people are getting use to internet and consequently they will understand the convenience to shop online. Although we are not hitting the target, we are getting more and more orders every day.”
E-commerce maybe nascent but the act of buying and selling online has gained widespread popularity among the Ghanaian populace, mostly the youth.
Mr Archie Hesse, Chief Executive Officer of GhIPSS (Ghana Interbank Payment and Settlement System) during the lunch of gh-link ecommerce, an online payment tool said, “e-commerce has the potential to expand Ghana’s economy”.
Already, the sector has attracted millions of dollars of investment from foreign investors including, but not limited to Ringier(Switzerland), rocket internet (Germany), Seek(Australia), Tiger Global (United States) and MIH Group/Naspers from South Africa.
According to e-retailers the market is yet to reach it potential. They believe few bottlenecks are the reason targeted goals have not been achieved in Ghana.
CHALLENGES
Owusu is very happy about the rapid interest shoot in the sector among Ghanaians but he wonders if the technological infrastructure size in the country can satisfactorily serve these masses.
He said “Technology is a challenge as business grows. Technological infrastructure should be improved to meet the growing demand of e-commerce. Internet services must be upgraded and made affordable to individuals.”
Others noted that the poor addressing system in Ghana makes delivery difficult. It was explained that after a successful online transaction with a customer, the delivery does not come easily because locating given address is always a problem.
“Directions given for offices and homes by our shoppers are always difficult to follow.” said Senaya Hilary, a staff at Hasby’s online in Labone.
Settor Dey, Head of Marketing at Kaymu and Jumia Ghana finds the attitude of certain customers bizarre. Settor explained that some customers will place an order for an item but refuse to accept it when delivery is made without any reason. He said this usually happens when the payment-on-delivery system is used.
Players say they will do everything in their capacity to surmount challenges that are drawing back their efforts.
How are they tackling the challenges?
Tisu is not only rating buyers and sellers to correct their irresponsible attitudes, but also they organize forums to project e-commerce and sensitize the general public as well. They believe it an avenue to make Ghanaians understand what e-commerce stands for.
Owusu said “We have organized many educational events to project and create awareness of Tisu online services. It will help people know and understand what we do.”
Others are making early delivery and creating pick-up stores to cement the trust of customers since they believe in visibility.
Shereena Yeboah, Vice President of operations at StoreFoundry says “we have decided to make early delivery the moment orders are placed. Moreover, we have increased the dispatch team.
They appealed to the government for assistance in overcoming certain challenges. They hope for frequent national e-commerce forums and infrastructural development which will enhance e-commerce operations in the country.
According to Information Economy Report 2015, titled “Unlocking the Potential of E-commerce for Developing Countries”, in the United States, total revenue from e-commerce sales of the sectors covered amounted to $ US 5.4 trillion in 2012, corresponding to more than 18 percent of their total revenue. Ghana’s economy is not as big as that of the United States but it is illustrative of the potential of e-commerce. The e-commerce sector challenges must be addressed quickly to unleash its potential for the Ghanaian economy.