Chisom Mmesomachukwu MaduOnuorah is the founder of Shop5AS.com, an online bookstore. In this interview, he talks about how the economic situation in the country is forcing Nigerians to drop purchasing books to read and how he is coping to scale through the challenges embedded with the business.
My name is Chisom Mmesomachukwu MaduOnuorah. I own Shop5AS.com, an online bookstore. I sell a variety of books, mainly business, history, technology, finance, and politics. I buy the books in bulk and sell them individually.
What motivated you to venture into the business?
I’ve always loved books since I was young. I have dozens of books in my personal collection, mainly business and history. My running joke is that I started a bookstore as an excuse to buy and read more books.
What are the challenges you face in the business?
There are numerous challenges, especially when operating in a country like ours with inadequate infrastructure. The first challenge was building trust. I set up my bookstore with Shopify, a popular e-commerce platform, hoping customers would visit my website, choose some books, and pay via debit card.
However, Nigerians have little trust in paying online to a company they haven’t previously interacted with. This is understandable because many have had bad experiences with online vendors or, worse, been duped. Hence, despite having a functional website, most transactions and payments are coordinated via direct message instead of on the website.
Another challenge is delivery. Interstate deliveries are expensive, and books aren’t a high-margin product. When someone orders just one or two books from Abuja, my home base, to another state, the order isn’t profitable after accounting for delivery costs. However, bulk book orders are usually profitable after considering delivery costs.
How has the economy affected your business since you started?
Unfortunately, the Nigerian economy is currently unstable, with inflation at an all-time high. Many people now struggle to afford the basics and, thus, have cut down on unnecessary expenses like books. People now buy fewer books because their purchasing power has been eroded by substantial inflation, hovering at 34% in August 2024 (IMF data).
It also doesn’t help that many of my books are imported from the U.S. and Europe because that’s the only way to get them. The Nigerian Naira was devalued this year, leading to a deep slump against the dollar; $1 equals N1,580 to N1,600 as of August 2024, compared to N870 to N900 as of August 2023. This slump means adjusting prices of imported books to the Naira equivalent, and some books have become much more expensive. People now shy away from these costly books, understandably.
What support have you received since you started?
Not much. I have mostly financed it personally and haven’t sought external help. The business climate is currently challenging, but challenges help me innovate. For instance, I have adjusted my catalog to focus more on books that can be obtained locally, thereby limiting exposure to foreign exchange volatility.
How do you reach out to customers?
I mostly run ads on Instagram, which have been very effective, to my surprise. I’ve gotten several long-term customers this way.
What is your future goal for the business?
My goal is to expand into more book genres and build a leading online bookstore in Nigeria and Africa at large. Also, in the coming years, I hope to expand into more genres, widen my book catalog, and add more product lines, such as board games and stationeries.
@Daily Trust YOUTHVILLE, https://dailytrust.com/i-started-a-bookstore-to-buy-and-read-more-books-maduonuorah/