Klasha Business

    April 26, 2022

    E-commerce in Tanzania: Can Klasha help me sell online in Tanzania?

    What is the current outlook of e-commerce in Tanzania?

    Unlike her sister African countries, e-commerce in Tanzania is off to a slow start despite having the fourth largest e-commerce consumer base in Africa and a high number of internet users. According to Datareportal, Tanzania has about 15.60 million internet users as of January 2022; with an increase of 2.9% between 2021 and 2022, 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 of the population buys goods or pays bills online. Nonetheless, e-commerce has the potential to 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 do I 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 the best 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.

    What are some of the challenges I might encounter owning an e-commerce store in Tanzania?

    Because online transactions are more convenient, they can help to improve customer experience and expand the business to reach a global audience. Despite the many advantages, 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 be unsatisfied with the service and leave. With KlashaCheckout, 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 keep our customers and merchants safe from online hackers.

    How does Klasha help with payment gateways?

    Klasha is a fully licensed and registered online payment solution provider, which you can use in your online store for free. On Klasha, all financial data is encrypted using a 256-bit HTTPS SSL connection and stored per widely accepted 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. 

    Once you have KlashaCheckout integrated into your website or e-commerce store, you can open your business up to the rest of the world to shop seamlessly in their currencies. 

    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 KlashaCheckout compatible with my website?

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

    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 KlashaCheckout or any of our solutions. 

    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.

    Why don't you set up shop in anticipation of this?