In the last few weeks, 100NairaShop, an eCommerce lottery site has been launched into the Nigerian Internet space. As its name suggests, the site has a different way of doing eCommerce.
On the surface, it seems 100NairaShop is a place where people can use 100 Naira (which is less than $1) to bid for luxury products including exotic cars, luxury bags and high-end smartphones.
On a deeper review of its modus operandi, the use of the word ‘bid’ might be inappropriate as the site is not in any way related to the business model of eBay or any other site where people can easily place a bid for a price that is fairly close to the actual market value of a product or service.
The 100NairaShop is basically a betting or you may call it a lottery site that collects as low as less than $1 from people to try their luck in winning a Land Rover SUV.
How to get into the game?
There is no ‘about us’ page on the website so it so we will make do with the 100NairaShop’s ‘How to play’ section on its website.
Customers are required to sign up “free of charge, simply provide an email address or phone number and you are good to go. Afterwards, proceed to setting up your profile to provide a detailed information of yourself. We would love to know more about you.”
The site operates a wallet system that is typical of lottery and betting websites. The wallet is needed for the customer to proceed in placing a bet “quickly proceed to funding your wallet with your desired amount.” for any desired ‘prize’ on the site.
To get into any of the games, the customer will be placing orders by simply adding any of the prizes to their cart. They can then proceed to checkout and wait for the draws to be completed to know whether they are winners of the luxury prizes.
Once a bet has been placed, customers are now enjoined to wait and see whther their luck will shine through in an SMS that is promised to be sent to the bettors. In the words of the site owners: “Bored? You are just one tiny step away from winning your dream private jet, car, house, mobile phone and lots more”
Counting the cost
No doubt about it, the 100NairaShop proposition is very catchy and penetratively accessible to an average bettor or customer. With less than $ or N100, they can place a bet to win a Land Rover, private jets and luxury bags costing more than $20,000 per unit.
It is a project that is bound to make anyone a multi-millionaire should they win the raffle. It is assumed that they can easily sell back the item to the owners or anyone who needs it for a cash. That is a reasonable proposition that stands the project out.
However, it is said that “If it’s too good to be true, it probably is”. While there is no sign that the 100NairaShop is a scam or fraudulent operation, its business model and promise is not the least worrying. It is understandable that the scheme will be relying on the numbers of bettors that will place bets for the times and the fact that the average ticket price is as small as N100 guarantees large amounts of interests and ultimately bets. However, the ability to sustain the promise might be its ‘achilles heels’ going forward.