Insecure delivery systems hamper online shopping

Lack of secure delivery systems and proper physical addresses in major towns is stifling the uptake of electronic commerce in the country.

This has made online buyers go for items that do not need to be delivered physically such as air tickets, music, movies, software downloads and bookings for hotels and restaurants.

Local firms that are selling their goods online mainly rely on the existing courier services to deliver goods to customers.
But unlike some established international courier services, it is not easy for a consumer to track the goods especially for upcountry consumers.

In urban areas, lack of clear residential markings by local authorities is making it difficult for courier services to deliver parcels, forcing them to pick up goods from the nearest drop-off points.

The Kenya ICT board Marketing Director and Deputy CEO Eunice Kariuki told the Business Daily that lack of physical address system in Kenya posed a big challenge to online shopping.

“More often, online merchants find it difficult locating residential units to make delivery when handling new customers. This is because finding directions is often limited to Google Map app and phone calls,” said Ms Kariuki.

To address this, the Ministry of Information and Communications has partnered with city authorities to introduce numbering of buildings within Nairobi County to ease delivery. This is expected to open business opportunities for courier firms such as G4S, Nation Courier Services, Postal Corporation of Kenya (PCK) and DHL, among others.

Buying goods online locally is a growing trend due to the improved telecommunication infrastructure in the country and online payment gateways which allow users to pay using credit cards or mobile money transfer services.

Local retail stores that have adopted the online shopping model include Chandarana and Uchumi Supermarkets.

Chandarana supermarket launched its online store in February where buyers can browse, select products and add them to their shopping cart.

“A registered client enters his/her account details and selects the mode of payment credit/debit cards and iPay (Mpesa, Airtel Money, YuCash and Orange Money),” says an officer in charge, Ian Mahero.

The supermarket also allows customers to pay in cash after receiving their shopping cart.

The minimum shopping basket value is Sh500 for personal collection and above Sh1,000 to have it delivered at the client’s doorsteps.

Mr Mahero, however, said sales on the digital market had yet to hit the supermarket’s expectations.

Uchumi CEO Jonathan Ciano shared the sentiments saying clients preferred “shopping with their senses,” qualities which online stores lack.
“Customers want to touch, smell and even feel products before making purchases,” Mr Ciano said.

The supermarket set up Okoa Masaa (save time) services three years ago to promote online shopping. The platform requires customers to dial a special code to selected outlets and have their shopping done and delivered at their doorsteps.

The retail chain said customer response was not satisfactory and the target group —busy families—still preferred to shop from the outlet’s premises on the weekends.
Mr Ciano, however, said the supermarket was planning to develop a comprehensive online store to boost their online business.

The ICT board also encouraged online traders to visit Kenya Open Data website to gain insight into the market dynamics before blindly getting into business.

The board emphasised the need for enterprises to conduct comprehensive research and design easy to navigate online shopping platforms.

Online stores should have clear pricing labels, product description and should strive to attract heavy traffic to their sites through effective marketing strategies, the board advises.

Other than fixing the physical addresses, the government, through the Communications Commission of Kenya (CCK) is collecting e-signatures to address cybercrime.

Electronic signatures

“The e-signature tool is going to make the online terrain more secure since we’ll have details of all Internet users in the country,” Ms Kariuki said.

In February 2010, the country moved a step ahead in terms of making e-commerce a reality by recognising electronic documents in the Kenya Communication Amendment Act 2009.

But it is yet to formulate guidelines for licensing and regulating electronic signature providers.

This has made it impossible for CCK to license third parties to certify electronic contracts and signature.

Their absence even as the government adopts online services in the Judiciary, Immigration departments, land transactions and other departments, allow fraudsters to forge electronic signatures.

Licensing of third parties to issue certification on electronic contracts and signatures is expected to provide the confidence needed in online transactions since one can verify electronic contract documents or signature through the providers.

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