E-commerce is gaining momentum the world over with platforms such as E-Bay, Amazon and Alibaba turning into billion dollar businesses. Even so, it is still in its nascent stages in Kenya, with only 16% of the Kenyans online having used the internet for e-commerce, even with the growth of e-commerce platforms including Kilimall, Jumia, OLX and PigiaMe. Lack of know how as well as absence of a delivery mechanism have been cited as possible reasons for this.
Now retailer Tuskys has unveiled plans to launch an online shopping platform in Q2 2016. Tuskys has cited the changing retail landscape as well as increased usage of technology as catalysts for this move. The retailer has looped in Safaricom to power payments for the services with Wells Fargo involved in the delivery of goods.
Tuskys is the second largest local retail chain in Kenya with 52 stores across the country and plans to open 72 express shops in Shell branded fuel stations. The retailer is also planning to introduce facial recognition software with the aim of curbing shoplifting in its shops. Last year, it was reported that more than Kshs. 100 Million was lost through fraud and theft in its stores.
Tuskys plans to deploy the technology by May 2016 across its stores.
The Communications Authority of Kenya recently issued new guidelines aimed at spurring the E-commerce sub-sector in Kenya. The guidelines were issued following the review of two frameworks, the adoption of e-commerce as well as Postal and Courier security management framework.
This stipulated that postal or courier operators implement mechanisms that provide for remote payment options incorporating a payment platform through a licensed financial payment services provider. They will also be required to come up with enhanced security for packages through faster parcel delivery and tracking of the courier delivery service by the company.