Klasha Business

    April 26, 2022

    How to start an e-commerce business in Tanzania

    Despite having many internet users, Tanzania is off to a slow start in e-commerce. According to Datareportal, Tanzania has about 21.82 million internet users as of February 2024, with about 31.9% of internet penetration. One might expect that more Tanzanians would adopt online shopping. However, that is not the case.

    Most Tanzanians do not have debit or credit cards, and only a small percentage buy goods or pay bills online. Nonetheless, e-commerce can potentially expand in Tanzania, especially given the recent expansion of mobile payment methods such as M-Pesa and Airtel.

    As a merchant looking to expand horizons, Tanzania's e-commerce is the space to be as online selling platforms and marketplaces play a prominent role in the country's developing e-commerce industry. It is necessary to analyse how to proceed as an e-commerce merchant, especially in terms of choosing the right platform to host your store and the best payment gateway best suited for your product and service in terms of traffic, competition, and target audience.

    How to create an e-commerce store in Tanzania

    As mentioned earlier, the e-commerce space in Tanzania is part of the incoming development, and this is a good time to launch your store and get started. Some of the reasons why you should have an e-commerce store include:

    • Reach global audiences and increase sales opportunities beyond your location.

    • Easily create markets for niche products and be the go-to brand for certain items.

    • Reduce overhead costs.

    • Improve users' shopping experience.

    Various platforms can help you get started with your online store creation. Some of these businesses are:

    • E-commerce websites like Kaymu, Kivuko, and Jumia.

    • Customised business websites built with store builders like WooCommerce, Wix, and Squarespace. 

    • Social media sites like Facebook Marketplace and Instagram.

    Challenges of owning an e-commerce store in Tanzania

    Despite the many advantages of an e-commerce store, there are some challenges that businesses may encounter when sending or receiving payments online. These include:

    • Technical issues: Online payments are susceptible to technical failures that result in several hours of downtime. Customers who cannot pay with cash can leave unsatisfied with the service. But, with Klasha Pay, we keep a close eye on things, and our technical team works round the clock to manage issues like this. 

    • Security problems: Like other electronic systems, online payment platforms are vulnerable to hack attacks. Hackers can trick unsuspecting users into providing sensitive online information, like their log-in information and use it for illegal activities. Klasha's online security and server presence are airtight, as we understand the importance of financial security. Our several layers of online security systems protect our customers and merchants from hackers.

    Accept payments on your e-commerce store with Klasha Pay

    Klasha is a fully licensed and registered online payment provider with a suite of cross-border payment solutions. With Klasha, merchants can send and accept cross-border payments to and from Africa. At Klasha, all financial data is encrypted using global security standards. Klasha also prioritises customer confidentiality and data privacy. Therefore, it uses a PCI-DSS-certified payment processor to handle credit card information. Customers do not have to worry about the security of their data. 

    One of Klasha’s payment solutions is Klasha Pay. It’s a payment gateway that enables merchants to accept payments from customers in various local currencies while they receive the equivalent payouts in their preferred currency. This means your customers in Tanzania pay you in Tanzanian shillings while you receive the equivalent amount in any choiced currency. Once you integrate Klasha Pay into your website or e-commerce store, you can open your business up to shoppers in Tanzania to shop easily.

    While choosing a payment gateway for your business, you might have the following questions in mind:

    • How much does it cost to integrate Klasha?

    • Is Klasha Pay compatible with my website?

    • How easy will it be for my customers to pay with Klasha Payt?

    Whatever your concerns might be, our team will provide you with all the information you need. Feel free to book a meeting to know more about Klasha Pay. 

    As expected, you might have some concerns with running an online business in Tanzania. At Klasha, we encourage you to take advantage of this early stage to build your online business in Tanzania. This is because, soon, more Tanzanians will need to explore the e-commerce market.