Aniwura – An online marketplace From local winners to global giants-the Aniwura advantage
The new world order: From local winners to global giants-the Aniwura advantage
An online marketplace is more like a market that aggregates products or services from multiple third-party sellers. Participating sellers typically perform customer services, source and deliver their own products and services, while the marketplace operators manage the platform, organize sales and promotions, process transactions and payments and even provide financial services to customers; participating sellers and buyers.
A marketplace is, therefore, no longer a tree-lined landmark representing a central location where people gather together to buy and sell goods and services. On the contrary, a marketplace is a non-finite platform that could be physical, but increasingly, has become digital, where people exchange value. This “place” has no corporal limitation, no palpable smell and certainly, no constraint of physical contact. On these platforms, the human race has decidedly begun to redefine the terms of social and economic engagement, who benefits or leverages on the evolving world order depends on the speed and precision with which this new form of interaction is adopted and integrated into society’s everyday life.
Manufacturers, wholesalers, retailers, community and trade associations and a dense network of value- exchanging individuals can now come together to do business without ever having to meet one another, physically. Information now flow across markets and countries at such blinding speed that decisions on trading, research, pricing , supply chains , production and marketing are made faster and with greater insights.
There are different models of marketplace. While some require sellers to place a security deposit before a transaction, some charge a fixed fee, in addition to commission while some adhere strictly to subscription-fee model.
It is smart idea for SMEs to join the online marketplace. Online marketplace is a more effective way for local SMEs to enter into the global arena since opportunities that come from running their individual stores online are quite high. A reputable marketplace will be able to project a small local manufacturer, wholesaler and distributor as much as the established brands and companies would project theirs. That will eliminate the fear of loss of control and brand identity usually caused by the lack of resources and the reputation to effectively create and manage their own e-platforms.
B2B e-commerce used to be the only major model of e-commerce globally until other models like B2C, M2C, G2B, G2E , Classified, 020, M-commerce and other models started springing up because of the increased accessibility to widespread broadband and online security.
The boom of e-commerce has opened opportunities for entrepreneurs to grow their businesses, and for SMEs to increase productivity and become more creative while buyers get more satisfactions because they are able to do price comparison, have accessibility to scarce products and services they ordinarily would not have had the opportunity to reach.
Generally, technology is becoming more of a personal and social tool for reshaping how society trades, works, studies or even plays. The digital stratosphere is the new reality: it transcends space, leaps across time and cuts a road through cultures, indeed the pathway to the future clearly begins with the click of a mouse or the touch of a digital button.
In this day and era, a buyer of commodities in Mexico could in two clicks of a mouse reach a farmer in Kaura Namoda, Zamfara state, and in a flurry of swift correspondences within ten minutes he or she could firm up a solid sale and purchase agreement duly signed by both parties. The speed, convenience and sheer transparency of the transaction would have been totally inconceivable as recent as two decades ago.
The application of e-commerce is not confined to the sales of goods but is being increasingly extended to various industries. In recent years, companies are particularly keen on developing mobile apps, which include games, as well as electronic platforms for personal and business services, such as car rentals and restaurant bookings and government to business (G2B).
Adoption of e-commerce in Nigeria
Globally, the Internet has contributed immensely to the growth of e-commerce in the past two decades. In Nigeria, e-commerce is relatively new. Its development is a very important and interesting trend. Introduced less than a decade ago(in 2012), but has redefined how goods and service are served consumers, especially the young, busy executives whose need for convenience such that Nigerian businesses are encouraged to pay attention to the development of all new forms of e-commerce.
As at 2012, the value of e-commerce was $35 million. It grew to $550million in 2014, according to Nigeria’s Ministry of Communication Technology. The market grew from 1,000 orders per day in 2012 to 15,000 per day. The market is expected to jump to $10 billion. with a projection of 300,000 orders per day, going forward. The e-commerce revolution has been made possible in Nigeria by deeper internet penetration via low-priced smartphones which allows young, tech-savvy consumers easy access to the internet. E-commerce in Nigeria is still a largely untapped market. A study found that out of 70 per cent of Nigerians who know about e-Commerce, only about 30 per cent use it. Most Nigerian internet users, about 70 per cent, use it to browse and search the web. The major drawback is absence of trust; trust in e-businesses, technological infrastructure or in the security of their data while making online payments.
Payment and Payment Systems
Buyers in developed economies usually use credit or debit cards to pay for their online purchases, while cash payment upon delivery is very common in some emerging economies, where the electronic banking system is underdeveloped.
Most transactions online are processed through third-party payment gateway providers, which allow payments and money transfers to be made through the internet as alternatives to traditional paper methods like cheques and money orders. Third-party payment platforms typically accept different payment methods from consumers such as credit cards, debit cards, pre-paid debit cards, or bank transfers. They also provide escrow services, whereby, buyers funds are protected by verifying release of payment after the transaction has been confirmed concluded.
Globally, there are online payment providers who are well-established and can be trusted for online payment. PayPal, alipay, MasterCard, visa, Interswitch, e-transact are some of the popular online payment platforms.