E-commerce challenges facing businesses in Ghana

E-commerce challenges facing businesses in Ghana

Ghana is a developing country with one of the most progressive telecommunications markets in Africa. Its internet penetration rate has vastly improved in recent years, with more than 10 million of its citizens using the web. With all the technological and infrastructural advancements, along with the growing interest of Ghanaians in online shopping, it is easy to see that the future looks good for this West African country in terms of eCommerce.

Businesses stand to earn a lot more money if they embrace eCommerce. But like other sectors, it isn’t free of challenges. Some of these roadblocks are serious enough to hamper operations or even discourage people from venturing into business in the first place. It may take time and effort, but once these challenges are addressed, the Ghanaian economy could become an eCommerce powerhouse.

Inefficient logistics

Businesses must have sound logistics to effectively facilitate eCommerce activities like managing and delivering orders. Whether you have domestic or international customers, you need reliable postal delivery systems, electronic banking infrastructure, and adequate internet services to ensure effective order fulfillment. Unfortunately, certain aspects of logistics leave a lot to be desired for Ghanaian enterprises.

For example, getting products from one point to another doesn’t always come easy, as rural addresses can be hard to locate. This is especially true in areas that have no definite name or with destination points that are inaccurate.

Senaya Hilary, a staff member for a leading online store, told Business World Ghana: “Directions given for offices and homes by our shoppers are always difficult to follow.” The advent of Ghana’s official digital property addressing system has certainly made product delivery easier, but for it to reach unprecedented heights, enterprises and government agencies could use a little more work in terms of information dissemination.

Limited technological infrastructure

Businesses need to have adequate technological infrastructure to support their operations and meet the growing demands of eCommerce. It should cover everything from equipment and facilities to business processes.

For instance, your business aims to provide the highest level of customer service so you employ strategies that ensure a quick response, including live chat and self-service tools on your website. If none of these are possible within your existing infrastructure, you run the risk of falling behind your competition.

Unfamiliarity

Lack of knowledge on eCommerce is holding back many Ghanaian businesses, especially those in remote areas. Naturally, this issue would raise concerns about product quality, bad service, high prices, and more. It is also perhaps for this reason why there are Ghanaian customers who refuse to accept delivered goods without giving any reason, which usually happens with cash-on-delivery systems. Currently, it is mostly the country’s young, internet-savvy population that prefers to place and receive orders through the web.

The lack of familiarity also breeds distrust in online payments. How do you expect the uninformed to send money to someone they haven’t seen or talked with in person? And because of the numerous instances of failed orders, many are having second thoughts about transacting online.

Security issues

While internet usage in Ghana is growing, many Ghanaians have yet to fully embrace eCommerce because of online fraud, which is prevalent in Africa. They are skeptical about revealing their personal information for fear of being scammed. For as long as the threat of cybersecurity is present, there will always be people who would opt not to patronize online shopping and other forms of eCommerce.

Make the internet work for your business no matter the challenges that come your way. The experts at Zentech IT Solutions will help you overcome eCommerce challenges for a smooth and profitable adoption. Consult with us today!

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