Why Zambian retail should go digital — #zedtwitter here's a thread about how ecommerce truly benefits the many faces of retail in #Zambia

1. Going digital will help you stand out and sell more by transforming customer experience

The traditional physical shopping model expects a lot from customers. Each purchase requires a physical journey which costs customers time and money. They have to visit the physical location to determine what’s on offer and once they get there, there is no guarantee of stock.

Ecommerce transforms the customer experience because customers can know what's on offer, how much it costs and whether it's in stock before they commit any resources.

They can browse up to date stock and prices from anywhere 24/7. They can make purchases when a physical shop would otherwise be closed. They can set delivery to when it’s most convenient to them.

Enabling ecommerce means customers can choose to visit a store if they so desire, rather than being forced to because they have no other option.

2. Going digital reduces costs as you become less reliant on rental space

Established retailers are being squeezed by Covid related reduced footfall and the challenges associated with a weakened economy. As the Kwacha goes down the US$ rate goes up. This is unsustainable.

There are also many faces of retail in Zambia, from the established retailer in the glamorous and gated shopping mall to the micro roadside seller. In between there is a sizable group of micro retailers who sell their creations and imports through social media and Whatsapp.

But the fact is, it is very difficult for the micro retailer to jump from their current routes to market to a shop in an established retail space.

The traditional physical shopping model demands a sizable upfront financial commitment. Before a business makes a single sale they will have to pay rent upfront. And regardless of the number of sales made, the same amount of rent must be paid.

Ecommerce reduces the traditional cost of retail. Established retailers can reduce the number of physical shops by launching and growing a profitable ecommerce route to market. And micro and small retailers can enter the market and expand their routes to market more affordably.

3. Going digital enables new opportunities for micro retailers

Retail in Zambia goes beyond the shopping mall because a significant portion of trade takes place in less formal markets. The ability for micro and small retailers to sell online affordably and effectively, dramatically increases opportunities for growth.

There is a vast difference in shopping habits in a country like ours in terms of desired products and associated costs. Not everyone shops in a shopping mall all the time.

If a large proportion of traders can’t sell in a shopping mall, then it follows that a large proportion of people don’t necessarily want to buy what is available in a shopping mall.

As well as affordability some people simply want to support smaller businesses and access local producers and makers.

When we accept ecommerce we better support the thriving, dynamic and multi layered retail sector that is found here in Zambia.

4. Going digital reduces the spread of Covid-19

In the short to medium term it is clear that we must accept a new norm of social distancing and reduced human contact. But it is very difficult to maintain social distancing when shopping in its traditional physical form.

Ecommerce definitely reduces the spread of COVID-19. It’s clear that to address Covid we need Ecommerce. When we have Ecommerce we address Covid!

Do you have any thoughts or questions on the topic? We and @sara_drawwater are happy to take them :-)