Entrepreneurs in Tanzania are finding success with social media shops while traditional e-commerce platforms struggle to survive.

We have seen several big names like Jumia closing shop, with others trying to hardly hold on, however, social media shops have been gaining traction for both entrepreneurs and consumers, and it's now normal practice for someone to scroll through Instagram to find what the want, contact the shop owner (usually through WhatsApp) make the order and have it delivered by boda boda to his doorstep (within the same region) or pick it up the parcel at the bus office (for different regions)

So, what makes these informal online marketplaces more attractive to consumers and entrepreneurs, outpacing traditional e-commerce platforms? The answer lies in the unique factors that set them apart and make them more appealing in the Tanzanian context.

1. Ease of Setting Up Shop:

Setting up an online store has never been more straightforward. Social media platforms offer entrepreneurs a user-friendly space to showcase their products and connect with potential customers. The simplicity of this process empowers a new wave of businesses that may have faced barriers on traditional multi-vendor platforms. One doesn't need to fill up zip codes, account details, etc she only needs a social media account and she is ready to start the business.

2. Simple Checkout Process:

Unlike the often convoluted checkout processes on traditional e-commerce platforms, social media shops provide a seamless and uncomplicated buying experience. With a few clicks, the transaction is complete, enhancing user satisfaction and encouraging repeat business.

3. Vast User Base:

The sheer magnitude of users on popular social media accounts is a game-changer for Tanzanian entrepreneurs. It opens up an expansive market, allowing businesses to connect with a diverse audience and increase sales and brand visibility beyond what traditional platforms offer. Tanzania had 4.90 million social media users in January 2023, accounting for 7.4 percent of the total population.

4. Convenient Home Delivery by Boda Boda:

One of the unique advantages of social media shops is the collaboration with Boda Boda, the motorcycle taxis. These agile and efficient services provide affordable and prompt home delivery, addressing the last-mile challenge and enhancing the overall convenience for consumers. they usually deliver at a very low cost benefiting both the entrepreneurs and consumers.

5. Payment on Delivery via Mobile Money:

The trust associated with payment on delivery is a significant factor in the success of social media shops. Mobile money has simplified and secured transactions, making the payment process accessible to a broader audience and fostering consumer confidence.

6. Easy Feedback Mechanism:

Communication is key, and social media platforms facilitate direct and immediate interaction between consumers and entrepreneurs. The ease of providing feedback fosters a transparent relationship, allowing businesses to adapt and improve based on real-time customer experiences.

Conclusion:

In conclusion, the rise of social media shops in Tanzania signifies a shift in how commerce thrives in the digital age. The amalgamation of an easy setup, streamlined transactions, a vast user base, efficient delivery services, secure payment options, and direct communication channels makes these platforms an irresistible choice for both entrepreneurs and consumers. As we navigate the future of commerce in Tanzania, the success of social media shops serves as a testament to the adaptability and innovation flourishing in this dynamic marketplace.