Challenges for Marketplaces in Africa

Challenges for Marketplaces in Africa

Every marketplace in the world has its challenges to grow. Well challenges as a part of how marketing analytics should work, and it creates better and better strength each time. The geographical condition shall also bring impacts to marketplaces’ challenges. Southeast Asia, for instance, most challenges come to shipping, due to strict regulations in most of the countries or facts that Southeast Asia country comes in archipelagos.

But now let’s talk about Africa. What are the challenges marketplaces in Africa‘s face?

Then, what are the impacts of the challenges? What should you prepare if you were in the marketplaces’ CEO’s shoe?

Challenges for Marketplaces in Africa
Challenges for Marketplaces in Africa

Example of Marketplaces in Africa

In Africa, few local marketplaces are pretty famous and working well. One of the reasons is that they sell authentic locals’ masterpiece hand-made accessories. Africa’s hand-made woven or other authentic creations are pretty known around the world.

Those marketplaces are Jumia which operates around multiple countries in Africa, next is Kilimall which operates in Uganda, Nigeria, and also Kenya, then Konga which operates in Kenya.

The Examples of Challenges the Marketplaces Are Facing

There are so many examples of challenges the marketplaces should face. Some of them due to logistical problems. One challenge that has happened the most is the accountability of PayPal and other worldwide networks. A fact that worldwide is purchasing Africa’s authentic hand-made products but not a lot of their countries’ commercial banks are connected to Africans’. To handle that challenge, most marketplaces in Africa allow PayPal as their payment gate.

The next challenge for marketplaces in Africa includes the existence of eBay and Alibaba. Those two gigantic marketplaces have a huge power of the market in Africa among the Africans themselves. And because they are bigger, guarantee more items and products, and also likely have better distribution capabilities, the other marketplaces (such as Jumia, Kilimall, Konga, and others) should do regular development and evolve.

Challenges for Marketplaces in Africa
Challenges for Marketplaces in Africa

Talking about the better distribution of eBay and Alibaba

the next challenge of African marketplaces is the effectiveness of the distribution. As distribution is a crucial part of order-fulfillment, it is very crucial for marketplaces to make sure their distribution to the customers does not take too much time for the products to arrive.

Still talking about distribution and payment, the next challenge is cash-on-delivery payment. Impacted by the rush distribution across Africa, and also the marketplace should consider the additional costs for the cash-on-delivery payment services.

The next challenge is the high rate of return and refund possibilities in Africa. In some marketplaces even have more than 10.0% of refund and return demand from the customers for pretty various reasons. This is likely the last more crucial or happens in Africa. Meanwhile, the other challenges that were not mentioned before are pretty occasionally.

Are There Other Crippling Risks for African’s Marketplaces?

Yes, risks such as cultural, societal challenges, currency risks, and human resources are also common for the African marketplace. But we know that these risks are always stuck to every marketplace from around the world, and not necessarily only in Africa.