How a TikTok Following Set the Stage for an E-Commerce Startup in Addis Ababa

Addis Ababa has seen no shortage of e-commerce startups. Many arrived with early momentum, only to fade just as quickly, unable to scale or sustain viable business models. In recent years, new entrants have been forced to experiment with fresh approaches if they are to survive at all.

Ananas, an e-commerce platform founded by the TikTok food reviewer Hailemichael Ayalew, is the latest to test that proposition.

Developed entirely by Hailemichael, whose food review videos attract hundreds of thousands of views, the platform aims to combine price discovery, discounts and delivery services in a single digital space. An electrical engineer by training, he is betting that social media can do more than promote products, it can generate demand in communities where purchasing decisions are already being shaped.

“We want to reduce friction by meeting users where they spend most of their time,” he said.

Each product listed on the platform is accompanied by a video review, preserving the format that initially drew customers from Hailemichael’s TikTok following. The company plans to maintain this blend of retail and review as it expands.

Ananas refined its offerings after an early experiment as a Telegram bot of the same name. Today, the platform curates its inventory with logistics in mind. Items are selected to allow for efficient delivery by the company’s small fleet of motorcycles, which currently numbers five. Products range from cosmetics and electronics to textiles and furniture, with availability playing a decisive role in what makes it onto the platform.

Ensuring consistent supply, Hailemichael said, is central to building trust in online shopping. Many Ethiopian e-commerce platforms frustrate customers by advertising items that sell out quickly.

“We intentionally select items that are available in bulk,” he said.

The platform now works with about 50 registered vendors, earning commissions of up to 15 percent per item. In some cases, Ananas procures goods directly through credit arrangements or partnerships and sells them to consumers itself.

The team has grown to 13 employees in just six months and continues to test features designed to improve the customer experience. Even the brand has evolved. The platform was initially poised to be called “Tap Tap,” a nod to the phrase commonly used on TikTok, before adopting the name Ananas, chosen for its simplicity and searchability.

Like many multi-vendor e-commerce platforms, Ananas has struggled with cash collection after sales are completed. While it is integrated with payment providers including Arifpay, Chapa and Addispay, those systems largely benefit customers. The company must still navigate cash-based practices among vendors, a gap that  Hailemichael said continues to strain operations.

Another obstacle has been access to foreign currency, which is needed to pay for promotional boosts on social media platforms. With sales leads heavily dependent on online visibility and product placement, digital advertising is central to the company’s business model.

Still, Ananas has grown steadily, bringing several operations in-house that were previously outsourced, including logistics. The platform pays its cyclists 100 Birr per five kilometers for delivery and processes nearly 50 orders a day. It has also introduced a three-day return policy, part of an effort to build a trust-based brand.

Looking ahead, Ananas hopes to move into manufacturing and importing in the coming years. For now, deliveries are limited to Addis Ababa, where the platform offers free delivery citywide. Expansion beyond the capital is planned, though timelines remain uncertain, dependent on infrastructure and cost.