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The E-commerce Value Chain

The E-commerce Value Chain

Welcome to the Power Hour! In this episode of the SME Hub, Christine Rita Abanco, the founder of Secure the Bag Africa and a business and life coach, joins us to discuss e-commerce. E-commerce refers to the buying and selling of products and services using the internet as the infrastructure for business operations. It involves the transfer of money and data to execute transactions.

One important concept related to e-commerce is the value chain. The value chain is the process or activities through which a company adds value to a product or service. It encompasses production, marketing, and the provision of after-sales service. By analyzing their value chain, businesses can identify competitive opportunities and secure their position in the market.

When it comes to e-commerce, the value chain includes key drivers such as the internet, mobile technology, internet marketing, digital payment solutions, logistics, and customer relationship management. These components are necessary for completing online transactions and adding value to the customer's journey.

Now, let's address some common questions about e-commerce:


  • E-commerce
  • Value Chain
  • Internet Marketing
  • Digital Payment Solutions
  • Logistics
  • Customer Relationship Management
  • Online Shopping
  • Trust and Security


Q: Can I engage in e-commerce even if I don't fulfill the entire value chain? A: Yes, you can start where you are and gradually incorporate digital methods into your business. Moving online offers benefits such as reaching more customers, lowering overhead costs, and benefiting from online communities.

Q: What were some findings from your MBA thesis on the e-commerce perspectives of Namibian SMEs? A: The model for e-commerce in Namibia is mainly driven by the internet, mobile technology, digital marketing, and customer relationship management. However, there are significant gaps in the Namibian e-commerce value chain, particularly concerning trust and awareness of digital payment solutions and online delivery. Namibians still prefer cash or bank-facilitated payments and are cautious about ordering products online without seeing and touching them first. However, attitudes are shifting, and Namibians are becoming more tech-savvy, with an increasing appetite for online shopping.

Q: How can Namibia embrace e-commerce fully? A: It will take time for the holistic idea of e-commerce to be embraced fully in Namibia. Continuous education about its benefits is crucial, and globally accepted security technologies need to be adopted to ensure customer transaction safety. Businesses must guarantee an excellent customer service experience, from handling financial information to after-sales support. The COVID-19 pandemic presents an opportunity to develop e-commerce capabilities and reduce operational costs while improving efficiencies.

In conclusion, understanding the e-commerce value chain is essential for businesses looking to thrive in the digital era. Incorporating digital methods and leveraging online platforms can help SMEs reach more customers and improve their overall business operations. With continuous education and increased trust in online transactions, e-commerce has the potential to transform the Namibian business landscape. Stay tuned for more episodes of the SME Hub with Christine Rita Abanco!