This archive report was first published on 22 September 2021.
Why Social Media Trumps Formal Platforms for Kenyan Sellers ¶
Published on September 22, 2021
Social media has become the preferred platform for Kenyan sellers, surpassing formal platforms in terms of cost-effectiveness, ease of use, and ability to build personal relationships with customers.
According to a recent report by Caribou Digital and Qhala, sponsored by the Mastercard Foundation, social media platforms such as Facebook, WhatsApp, and Instagram have become the preferred starting point for new sellers due to their familiarity and ease of use.
"Social commerce offers a degree of familiarity with clients. This is especially true for WhatsApp, which constitutes immediate networks and offers a chance to grow using social media advertising," reads the research.
The report notes that social media channels are free to set up and do not charge a commission after sales, making them an attractive option for micro-and small businesses who want to test new business ideas with minimal capital investment.
Moreover, running a business on social media has low operating costs, allowing small businesses to experiment and offer competitive pricing.
"Facebook and Instagram are free, all I had to do was create an account and start selling. When I think of the other platforms where I could list my products, I have to consider the cut they get, plus the process of getting myself approved to start selling," said Kelly, a merchandise seller in the report.
While most sellers start with their personal pages to immediately connect with buyers, they later advance to business accounts to quicken the purchase path.
Instagram is preferred as an e-commerce social platform for its audience and ability to curate products in gallery form, while WhatsApp is viewed as an easy platform to sell from due to easy access to contacts.
However, Twitter is not commonly used, and those who do, take advantage of top hashtags of the day, which users said results are based more on luck than defined strategies.
Formal marketplaces, on the other hand, offer sellers a massive reach to e-commerce buyers, handle logistics, place sellers in categories, and provide guidelines on product descriptions and packaging.
However, sellers on these platforms say they do not have full control over their products, and struggle to build their brand and customer relations within the platform.
"Sellers mentioned having limited control over how their products are showcased on the platform; those selling niche products struggle to compete with products in categories that platforms are best known for," notes the research findings.
With no direct connection to buyers, sellers struggle to turn views into sales, and some feel helpless, engaging in paid promotions or using their social media pages to redirect buyers to their listings.
"Commitment on the platform goes hand-in-hand with the amount of sales achieved. Low sales thus result in reduced engagement, for instance, from daily platform interactions to weekly to eventually forgetting to check listings entirely," adds the report.
