Nigerian electronics retailer NEO Store is launching a dedicated e-commerce website as it transitions from social media-based sales to a full-fledged digital platform, marking a significant evolution in the company's business model.
Operating from Asaba, Delta State, NEO Store has built a significant presence across Nigeria, delivering electronics and household appliances to 32 out of the country's 36 states. The company's expansion comes as Nigeria's e-commerce sector grapples with persistent consumer trust issues.
Founded by Emmanuel, who inherited the business from his father eight years ago, NEO Store has addressed trust concerns through innovative customer service approaches, including adding complimentary snacks to shipments and leveraging established relationships with major suppliers like Fouani and Thermocool.
The company's growth reflects increasing confidence in online retail, with some transactions reaching as high as ₦7.3 million ($9,500) for household electronics packages. NEO Store's new platform, neostore.ng, aims to streamline the purchasing process beyond the current direct message-based system on social media.
The founder's experience spans over two decades in Nigeria's electronics trade, having learned the business alongside his father, who was a prominent electronics dealer in the country's South-East region. After an unsuccessful venture into water manufacturing in Abuja, Emmanuel refocused on electronics retail with an emphasis on digital transformation.
NEO Store's business model includes decentralized logistics operations that utilize multiple warehouse locations to reduce delivery times and costs. The company initially operated at zero profit margins while building customer trust through value-added services such as free delivery and complementary products.
The transition to a web-based platform represents a significant step in NEO Store's evolution from social commerce to mainstream e-commerce, as Nigerian consumers increasingly embrace digital shopping despite historical skepticism about online transactions.