Less than 30% of African e-commerce startups profitable – Ekeh

Lack of trust, shortage of financing, logistical difficulties and the largely traditional approach to shopping have been identified as factors that hamper the development of e-commerce startups , making less 30 than per cent profitable.

This was made known by Prince Nnamdi Ekeh, Vice President of Yudala, an online and offline e-commerce company, during a media chat with newsmen recently.

According to Ekeh, unlike other e-commerce companies, Yudala is set to hit a path of profitability by 2020, making it the first e-commerce company to return to profits within its first five years of operations. He added that available statistics show that Yudala is on the right path to set enviable records in Nigeria’s e-commerce industry.

“ At Yudala, our strategy is clear and distinct from anything else on offer in the market today. Our fusion of online and offline is not only futuristic, but one that has being copied by other global e-commerce giants. On the back of this, we have seen a consistent growth trajectory that will see Yudala emerge as the first profitable Nigerian e-commerce company by 2020.

“ Futhermore, we are renowned as arguably the most credible source of genuine products in the e-commerce sub-sector today. Every item on the Yudala platform, online or offline, is sourced directly from the manufacturers; and this has clearly distinguished the Yudala brand in the marketplace,’’ he said

Ekeh opined that Yudala possesses superior logistics and delivery timelines that have made the company shoppers’ choice, adding that majority of them got hooked after their first experience of Yudala. “We have consistently seen repeat purchases from our customers. In most cases, we have also been able to win over new shoppers, the majority of whom, having patronized other platforms, have not looked back since their first experience of Yudala.Aligned to the foregoing is the passionate, committed and highly professional team we have in the company, all of whom have continuously displayed the hunger and capacity to deliver on our mandate,’’ he explained.

Expressing concern about challenges facing players in the e-commerce sector, Ekeh said, “ We are aware of the challenges faced by players in the e-commerce sector. Research at our disposal indicates that less than 30 percent of African e-commerce startups are profitable, with many of them hampered by lack of trust, shortage of financing, logistical difficulties and the largely-traditional approach to shopping still in play among these economies.

He added: “The story is different at Yudala. This is due mainly to our sound business model and approach. Indeed, while our investors expect us to deliver profits by 2022, our ambition is to surprise them by achieving this milestone earlier,’’