Even though there are several online marketplaces in Nigeria today, OLX was the first in the market and this has given it an edge over its contemporaries in the space. When the case of the OLX house help gained national attention, many industries wondered how it would affect the platform’s operations but Nigerians continue to buy and sell on the platform suggesting that the company might have survived its worst PR nightmare since it began operations in the African market. It also appears that the incident caused it to focus more on building trust and making the platform safer for its users in Nigeria.
In this exclusive interview, Lola Masha, Country Manager for OLX Nigeria answered questions on trust and safety, operations, competitions and several other issues affecting OLX and the marketplace space in Nigeria’s ever-expanding tech scene. I started by asking her what’s new at OLX Nigeria?
Lola Masha: At OLX, we are constantly innovating so that our users can trade safely and successfully on our platform. We are currently making improvements on the site to ensure that our users have a great experience when using OLX.
OLX has lots of competitors and we’ve spoken to some of them. They all believe OLX has more money than they do, is this true?
OLX is the most popular online classifieds platform in many fast-growing markets around the globe and it continues to grow rapidly. OLX is in 40 countries including India, Portugal, Poland, Brazil, Argentina and Indonesia. Nigeria is a priority market for OLX and we are committed to our investment here and determined to succeed.
What edge do you have other your contemporaries?
We are the first in the market and have been here for three years. We know our users and understand their needs. We help people discover buying and selling opportunities, earn a little extra cash and get the chance to find great deals.
Few weeks ago, the CEO of MOBOFree told us the space in which you guys compete is not going to begin to yield profits immediately. He said the earliest that anyone can begin to make profit is in 5 years. Do you agree? If yes, do you think OLX can sustain its current tempo till then?
For us at OLX, our top priority is growing activity on the site and ensuring that our users have a great experience. We are also actively educating the Nigerian populace on how to effective use our classifieds platform.
When I randomly asked OLX users about their perspective of the platform, no one knows how the company generates – or plans to generate revenues. So, kindly give us an explanation of the OLX business model
The primary Classifieds business model is to monetize traffic through 3rd party sponsored advertisements. On the OLX site, we have several sponsored links that have been paid for to appear on the site across all categories e.g. vehicles, mobile phones, electronics etc.
I recently spoke to someone who said he bought a fake iPhone on OLX. How frequently does this happen, what are you actively doing to address this and what else could be done to make OLX safe for its users?
Trust and Safety is another top priority for us; we advise our users when buying items on our platform to thoroughly check the item they are buying, the same way they will do offline. When you go to an open market for example, you will thoroughly check what you are buying to ensure that you are not being sold a fake item. We need our users to apply the same checks they do offline when buying goods online.
Another issue is that, people sometimes confuse the OLX (classifieds) model with the e-tail model. Users should understand that OLX does not own the offered goods and our role is more of a facilitating role: the actual transaction and payment are not done on the platform but in-person between users.
What are the essential precautionary measures that you believe OLX users in Nigeria should take when transacting on the platform?
Our Nigerian users should follow these tips when trading on the site to have a safe and wonderful transaction.
- It is always best to trade in person. This is because users will have the opportunity to inspect the item thoroughly before paying for it.
- Know what you are buying. Get as much information on the item, by asking the seller questions, and keep these records. In case of electronic goods, cars and bikes you should test the item. Compare prices from similar products on OLX to judge whether a price is fair.
- Buyers should never pay in advance; only pay after you have thoroughly inspected the item.
- Always meet at a mutual/public place like a fast food restaurant and it is advisable to bring your friend with you who can be your second eyes when inspecting the item.
How is OLX operations in Nigeria in comparison to elsewhere?
The Nigerian market is very unique in comparison to other markets globally. The issue of trust and safety is not as prevalent there as it here. That is why we ensure all ads posted on the site are reviewed by an OLX team member to ensure they meet our requirements before they go live on the site.
How many registered users are on OLX in Nigeria?
Globally, there are more than 200 million monthly active users, OLX is one of the biggest Internet platforms in the world.
What should users and industry watchers expect from OLX this year?
We are not resting on our oars and we will continue working to improve the experience of our users on the platform. We are also working on several partnerships with leading players in different industries to enhance our users’ experience.
