Store 251 Rolls Out App as Ethiopia’s E-commerce Scene Faces Shake-Up from Informal Vendors, Telecom Giant

An Ethiopian e-commerce company known for its wide selection of locally made goods has taken a digital step forward by launching a dedicated mobile app. Store 251, a five-year-old startup which operates through both physical and online outlets, debuted a mobile app last week, in a bid to strengthen its position in the country’s increasingly competitive e-commerce sector.

The platform, developed with seed funding and support from Venture Meda, a collaborative initiative that looks to supercharge promising e-commerce startups, looks to expand 251 market presence.

Madot Assefa, Founder and CEO of Store 251, says the app was designed to cater to the needs of users who are increasingly shopping through their smartphones. She recalled that development took nearly eight months, with updates continuing till now.

“Our app was developed to reflect an actual marketplace,” Madot told Shega.

A sleek interface fitted with customer reviews, live transaction dashboards, and customizable display formats for stores is available on the platform. Shoppers can also create and share wish lists for special occasions and earn Sheba Miles credit points redeemable for benefit packages when flying with Ethiopian Airlines. The platform’s development has maintained 251’s earthy aesthetics and attention to branding for each product.

Started from a shop at Jupiter International Hotel in 2017, Madot spun off the e-commerce wing four years later with 41 registered up-and-coming Ethiopian brands. Most of the featured shops offer locally made products, primarily hosting textile products and fashion accessories. The platform charges a 10% commission fee on sales while hosting all the products at both its online and physical outlets.

Ethiopia’s e-commerce ecosystem remains a challenging landscape, with most startups struggling to survive beyond a few years. An e-commerce ecosystem report published last year revealed that most platforms struggle to scale due to a shortage of funding and limited annual sales. From the 80 e-commerce startups surveyed in the report, only 42% managed to earn more than $10,000 in annual revenues, while two-thirds had fewer than 10,000 users. The recent uptick in the number of informal vendors through social media channels like Telegram, Facebook, and TikTok has further compounded the challenges for e-commerce startups. Furthermore, the recent entry of telecom giant ethio telecom into the space with Zemen Gebeya has e-commerce startups bracing for impact.

Madot hopes to scale up and diversify 251’s operations by unlocking the full market potential of her Ethiopia-focused portal through technology upgrades. 

“We are trying to raise funds for more upgrades,” she says.

The new app is integrated into the Chapa Payment Gateway, enabling transactions from most financial institutions in the country. Through an emphasis on customer transparency, local brands, and a unique offering of goods, the 251 store hopes to remain as a formidable incumbent in Ethiopia's e-commerce landscape.