4 major challenges facing the e-commerce sector in Ghana

E-COMMERCE

Ghana is a developing country in Africa that has made great strides in terms of technological development over the past decade. Internet penetration in Ghana has improved a lot over the past decade. An increase in internet penetration means that there will be technological and infrastructural advancements in countries, which will pave the way for things like e-commerce and online commerce.

Ghanaians’ interest in online shopping and e-commerce has increased, meaning there are more opportunities than ever to start a successful e-commerce store in Ghana. Businesses that were active in the market realized this and embraced e-commerce to earn much more revenue.

Just like other sectors, e-commerce in Ghana is not free from thorns. This industry is facing challenges that are hampering the growth of this industry in the country and discouraging people from investing money in e-commerce. It is important to address these challenges and for this reason, we have discussed some of the major challenges facing the e-commerce sector in Ghana:

Inefficient logistics

The first major problem facing the e-commerce sector in Ghana is that the logistics operations in the country are highly inefficient. E-commerce is something that requires fast and strong logistics to efficiently deliver orders on time. For any e-commerce store, having a reliable postal delivery system is one of the main things to consider before starting the business.

In Ghana, the logistics are very bad. Delivering an order from a warehouse to the customer is not as easy as in other countries, especially in rural areas where addresses are difficult for delivery companies to locate.

With the advent of Ghana’s digital property system, things have improved and it has become much easier to deliver products than before, but the logistics system in Ghana is very inefficient. Where in other countries you can get any order, whether it’s a Scrabble board for Scrabble word searcha laptop or any other order in a day or two, it takes much longer than in Ghana, which makes the whole process inefficient.

Limited technology infrastructure

E-commerce is all about internet and technology. For the e-commerce industry to meet customer demands and expectations, it is necessary to have an adequate technological infrastructure that can fully support e-commerce operations.

For example, there should be a live chat system through which customers can directly contact the customer support team and get help regarding the products displayed on the websites to remove any misconceptions that customers might have in their mind.

Unfortunately, in Ghana, the technological infrastructure is limited and there is no integration of modern technologies in the e-commerce sector yet, which poses challenges for customers.

Lack of awareness regarding e-commerce

There is also a lack of awareness in the country due to which the e-commerce sector in Ghana is not able to reach its full potential. Especially people who live in rural areas don’t know what e-commerce is and how they can order something just through the internet without even looking at the product in real life and without knowing the quality of the product. They are not even familiar with popular games like Words between friends.

There is also a lack of knowledge regarding online payments. People don’t trust someone they haven’t seen or talked to in person and don’t send them money. There have also been cases of fraud with people due to which mistrust has increased.

Most people who order from e-commerce stores are teenagers and young adults in the country who know how these things work and want to buy things directly from them.

Cybersecurity concerns

Another major issue facing the e-commerce industry is the issue of cybersecurity. There is no doubt that internet usage and penetration has increased in Ghana, many people have fully embraced the e-commerce culture, but many are hesitant to do so for various reasons, the most important being common frauds.

Online fraud is widespread in Africa. Many Ghanaians are afraid that if they order something on the internet and make an online payment, they will never receive the product they ordered and will get ripped off out of their money.

Most of the e-commerce stores in Ghana are legit and even offer cash on delivery services so that customers can pay after receiving their products, but these cybersecurity issues are forcing people to prefer going to the market in real life rather than buying something on the Internet.

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