Ill add my comments as they come from my mind (its a while back). Here are some critical factors we need to consider: (im actually thinking a different well titled thread would help here).
1: Value Proposition:
For an internet business to thrive, it has to offer or at lease be percieved to offer value beyond what is currently the norm. People wont just resort to ecommerce if for instance in their opinions it is cumbersome or riskier than just walking to the shop and getting what they want. which means the goods you intend to sell must be:
a: understood (the customer knows what it is, how it looks, what a good / bad one looks like ...e.t.c
b: better prices: price here being a sum total of convinience, risk and actual pricing.
c: available: no one loves buying an out of stock product and then waiting you to get it from ebay.
An example we found interesting and spot on in terms of value proposition was mamamikes.com, the target market knew the product, appreciated the convinience.
more input coming.
@Simon Mbuthia..I think what you are identifying is an opportunity..use existing reliable couriers akamba/G4S/ 2nK etc to build a reliable delivery system across the country..leverage warehouse facility of companies like Nakumatt/Tuskys etc for storage..use post office/supermarket outlets for delivery..maybe it would call for a lot of cordination but its totally possible...If garbage companies can do door to door "delivery" then I think all these brilliant minds can come up with delivery channels that work.
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