The Influence of E-Marketing on Sales Performance among E-Commerce Entrepreneurs, a Case Study of Ilala District

The Influence of E-Marketing on Sales Performance among E-Commerce Entrepreneurs, A Case Study of Ilala District

Nakiete M. Kambi

St. Augustine University of Tanzania

DOI: https://dx.doi.org/10.47772/IJRISS.2025.914MG0033

Received: 24 January 2025; Received: 04 February 2025; Accepted: 06 February 2025; Published: 19 March 2025

ABSTRACT

The research examined the impact of e marketing on sales performance among e-commerce entrepreneurs. The study guided by three specific objectives: to evaluate the role of technology in enhancing the sales performance of e-commerce entrepreneurs in Ilala Municipal, to investigate the effect of information on the sales performance of these entrepreneurs, and to assess the influence of distribution on their sales performance. The study framed by Market Segmentation Theory, which posits that marketers are shifting from traditional mass marketing approaches to targeting more personalized groups of consumers with similar purchasing behaviors and emotional responses. Data collection methods included questionnaires and interviews, with data analysis conducted based on the characteristics of the data, whether qualitative or quantitative. The study reviewed existing literature relevant to its specific objectives. In terms of methodology, it involved customers who subscribed to Azam Television in the Dar es Salaam City Council. Data collection techniques included interviews, questionnaires, observations, and document reviews. Qualitative data analysis utilized content and thematic analysis, while quantitative data analysis employed descriptive and inferential statistics. Key findings indicated that e-commerce provides valuable product information including names, descriptions, prices, availability, and images through mobile applications, which aids customers in making informed purchasing decisions. Additionally, e-commerce expands market reach and improves customer satisfaction by ensuring timely delivery of goods from manufacturers to consumers. The technology used in e-commerce also optimizes various operational tasks, including warehousing, transportation, and inventory management, while offering cost efficiencies, economies of scale, and customer support services.

Keywords— E-Marketing, Entrepreneurs, Sales Performance

INTRODUCTION 

Marketing is a process that involves planning and executing actions such as conception, pricing, promotion, and distribution of goods, services, or ideas, with the aim of making exchanges that satisfy both individuals and organizations (Asmuni et al., 2020). According to Marlizar (2020), marketing performance is a key function that has significant contact with the external environment, even though the company has limited control over it. In the marketing world, consumers are valuable assets that need to be nurtured and maintained to remain consistent with the products being offered (Romdonny & Rosmadi, 2019). In addition to digital marketing, e-commerce is believed to boost the marketing efforts of entrepreneurs’ actors. Today, consumers prefer more practical transaction processes and access to product information online, minimizing the need for physical interactions. With the availability of sufficient data technology, entrepreneur’s actors can more easily engage in digital marketing at a lower cost. Prihadi and Susilawati (2018) emphasize that e-commerce influences marketing performance and assists entrepreneurs in entering the global market.

Entrepreneurship is a dynamic mindset and spirit that continuously strives to promote and increase business income. It refers to the ability to create opportunities and act creatively and innovatively. The growing number of micro, small, and medium enterprises (MSMEs) demonstrates that many individuals are choosing to become entrepreneurs and create job opportunities. Entrepreneurial orientation, as a business strategy, allows companies to compete more effectively in the realms of e-commerce and the digitalization of marketing (Prihadi & Susilawati, 2018). Simanjuntak and Sukresna (2020) argue that entrepreneurs can achieve superior marketing performance by adopting digital media (Digital Marketing) as a marketing strategy. According to Bali (2017), digital marketing is more efficient, enabling potential customers to access various product information and complete transactions online through e-commerce strategies. Hardilawati (2020) further suggests that digital marketing enables direct communication with consumers, reducing promotional costs.

The history of e-marketing in Tanzania reflects a similar trajectory to the broader African context, with unique local factors influencing its development. In the early 2000s, as internet infrastructure improved, business in Tanzania began exploring online marketing through websites and email campaigns. Mobile phones played a pivotal role in shaping e marketing in Tanzania, given their widespread use. As smartphone penetration, increased social media platforms became prominent for marketing efforts. Local businesses and entrepreneurs utilized platforms like Facebook and Instagram to reach a broader audience. E-commerce in Tanzania experienced growth, with the emergence of the online marketplaces and digital payment solutions. This shift contributed to the convenience of buying and selling goods and services online. E-marketing in Tanzania currently faces several challenges, primarily stemming from high market prices that limit internet access for e-commerce entrepreneurs.

Many individuals struggle to secure reliable internet connections, which hampers their ability to effectively promote and advertise their products and services. Additional barriers include regulations, data privacy laws, taxation, trust issues, and security concerns. For instance, discrepancies between ordered and delivered products can erode customer trust in online businesses, further complicating the e-marketing landscape. Despite these challenges, businesses must enhance their visibility in an increasingly competitive market, especially with the rise of social media platforms. Research indicates a lack of consensus on whether e-marketing positively impacts sales, as some respondents suggest that word-of-mouth recommendations from friends and family hold more weight than information from social media. However, other studies highlight the potential of marketing applications to boost sales for small businesses by facilitating the sharing of experiences and comments among users. While many telecommunication companies in Tanzania are launching e-marketing campaigns to promote platforms like Instagram, WhatsApp, and Facebook, there remains a gap in research focused specifically on the effects of e-marketing on sales performance. This study aims to explore how these selected media applications can enhance sales among entrepreneurs in Tanzania.

Study Objectives 

1. To assess the contribution of technology on the sales performance of E-commerce entrepreneurs in Ilala Municipal
2. To examine the influence of information on the sales performance of E-commerce entrepreneurs in Ilala Municipal
3. To evaluate the role of distribution on the sales performance of E-commerce entrepreneurs in Ilala Municipal

LITERATURE REVIEW

Theoretical Framework

Kurt Lewin’s change theory serves as the theoretical framework for this study, explaining the stages organizations undergo to manage structural and environmental changes. Propounded by Lewin in 1890, the theory posits that change is inevitable and must be effectively planned and managed to ensure success. The change process involves three stages: unfreezing, changing, and refreezing (Lewin, 1890). In the unfreezing stage, an organization recognizes the need for change and prepares by abandoning old methods and behaviors. According to Lewin (1890) the changing stage involves planning and implementing the new changes, while the refreezing stage focuses on stabilizing the new changes as the norm. The theory emphasizes the importance of both directive and supportive leadership behaviors, which must be applied appropriately depending on the situation.

The relevance of Kurt Lewin’s change theory to this study lies in its application to the dynamic operational environment of entrepreneurs, particularly in light of the COVID-19 pandemic. The theory suggests that entrepreneurs can enhance their performance through an active change management process that views change as a necessary requirement for growth and improvement. For entrepreneurs to effectively change their strategies to suit the new normal imposed by technological advancement, they must unfreeze, change, and refreeze their strategies. In the unfreeze stage, entrepreneurs recognize the need to adopt E-marketing strategies. In the change stage, they plan and implement these strategies, and in the refreeze stage, they integrate E-marketing into their operations as the new normal, developing strategies and policies to sustain the change. This approach ensures that entrepreneurs can adapt to the new environment and continue to thrive.

Empirical Review

Shangui & Zhu (2022) in China conducted research on effects of social media usage on consumer purchasing intention in social commerce use quantitative and data was collected from 2,058 international students from135 countries and the result founded that social media usage serves to generate users purchasing intention on social commerce website. Zacharia et al. (2023) in Tanzania did research on the utilization of social media and its implication on the performance of SMEs and use quantitative from a sample of 336 and found that use of social media like WhatsApp has significant effects on SMEs performance and it contribute cost effectiveness, customer satisfaction and market performances.

Malik et al. (2020) in Benin conducted a study on social media application what sap usage and increased sales. The study involves 100 respondents who are entrepreneurs and used interviewed. The study shows 90% of sales made through online advert and only 5% to 10% made offline adverts the study concluded that even though social media are more effective than tradition adverts channel the implication is that social media only cannot single handedly increase sales among entrepreneurs.

Jenalyn et al. (2020) Philippine observed that internet users create a public profile and communicate with other users on social networking sites like Face book. The study revealed that when it comes to face book, it is worth nothing that the business owners are not maximizing the features, use, and settings of its business page. Koller et al. (2020) did research on the effective entrepreneurial marketing on Facebook and the result revealed that the reach, frequency, and speed of communication on social media offer the ideal advantage for the drivers of entrepreneurial marketing.

Octavia et al. (2020) conducted a study with the purpose of analyzing the impact of entrepreneurial orientation on SME business performance. The result of data processing indicates there is a significant influence between entrepreneurial orientation, market orientation, and e-commerce adoption to SME’s business performance in Jambi Provinces. We believe that entrepreneurial orientation, market orientation, and e-commerce adoption model in this study will have both managerial and academic positive implication.

Moreover, research by Abebe (2014) indicates that SMEs with an entrepreneurial orientation are better positioned to enhance their business performance through the adoption of e-commerce and digital technologies. However, it is important to note that improvements in business performance are influenced not only by the adoption of e-commerce but also by the utilization of social media (Raphael, Thomas, & George, 2017) and the benefits of social commerce (Ludwig & France, 2016). In reality, many SMEs struggle with internet technology, which is a significant reason why they often shy away from implementing e-commerce strategies.

Research conducted by Shemi and Procter (2018), Sullivan and Kim (2018), and Ghobakhloo, Arias-Aranda, and Benitez-Amado (2011) highlights that trust, commitment, and innovation are vital factors for SMEs to enhance sales through e-commerce. Additionally, the cultural context of a country plays a significant role in the effective utilization of e-commerce (Hallikainen & Laukkanen, 2018).

Saridakis et al. (2018) explored the influence of industry characteristics, particularly the information intensity of the value chain or product, on the relationship between e-commerce development stages and revenue growth among a large sample of SMEs and other entrepreneurs in the United Kingdom. Their findings suggest that SMEs operating in industries with high information intensity, which possess their own business websites, third-party websites, or social media profiles, tend to report higher revenue growth compared to their counterparts in other industries or those lacking e-commerce development. However, the likelihood of improved performance does not significantly differ among SMEs at various stages of e-commerce development, regardless of whether they are in high information intensity industries.

In a study by Harnani et al. (2020), the impact of e-commerce on sales volume in the creative food and beverage sector was investigated. This research utilized quantitative data, with primary data collected through questionnaires, interviews, and observations, supplemented by secondary data from relevant government agencies, journals, and online resources. The study employed descriptive verification methods and simple linear regression to assess the effect of e-commerce on sales volume. The results indicated that e-commerce significantly influences sales volume, accounting for 56% of the variance, while the remaining 44% is attributed to other factors not covered in the study.

The findings reveal that entrepreneurs exhibit moderate levels of TR, with significant differences based on demographics such as gender, age, education, and income. The survey showed that only 36.3% of respondents had adopted internet-based promotional media, indicating a need for increased support for SMEs in adopting and utilizing e-commerce. These findings have implications for SME managers and government agencies in developing countries like Indonesia, highlighting the importance of identifying TR drivers (optimism and innovativeness) and barriers (discomfort and insecurity) that affect the effective use of the internet in this critical area for SMEs.

Ahmad et al., (2020) Pakistan, conducted online survey on impact of social media application on increasing sales to entrepreneurs. The study involves 150 respondents, the study revealed that 83% of respondent, have concluded that social media has numerous benefits for any business. For example, social media such as Instagram provides a cheap option for businesses to promote their products, helping track customer targets and others social media application increase sales among entrepreneurs and this is due to comments shared by other people on the social media application.

Nelson (2020) conducted online survey on effects of social media application on increasing sales among marketers. The results showed that online users are more likely to produce review and 3 out of 5 their own review of the product and 81% of women are more likely to share with others about the product they like compared to men. The study also reveals that 58% of social media users write product review to protect others from bad experience. Smith (2019) conducted a study on the assessment of social media application on increasing sales among marketers’ participants obtained from Facebook fan page and result shows that entrepreneurs or marketers must actively engage with their target customers in order to compete in the competitive market place.

Pembi et al., (2017) conducted research on the impact of sales promotional strategies on organizational performance in Nigeria. The objective was to examine the impact of sales promotional strategies on organizational performance. The study takes a sample from staff of the plant starting from the top, middle, and lower level of management. The study used both the primary and secondary sources of data collection; the data collected were subject to descriptive statistics such as percentage analysis and regression analysis for testing hypotheses. The study concluded that sales promotional strategies have positive and significant effects on organizational performance. The study further recommended that company should plan, organize, direct, and control their sales promotion programme in place, as this will help them to make such promotional strategies effective and efficient.

Walton, (2016) in his research on the impact of sales promotion on organizational performance, the study generally sought to examine the effect of sales promotion on the profitability of Guinness Ghana Brewery Ltd. The population of the study was 865 that included management, staff, and key distributors of which a sample of 160 used. The study adopted a descriptive research design; the main sources of data were both secondary and primary, and STATA 13 used for the analysis of the data, and congruency theory of sales promotion used. The study concluded that there is a positive and significant relationship between sales promotion and profitability. The study concluded that 1 percent increase in 15 sales promotion was associated with 0.44 percent increase in sales turnover. The relationship between sales promotion and customer acquisition was positive and significant.

Adeniran et al., (2016), researched on the Impact that Sales Promotions have on Sales Turnover in Airlines Industry in Nigeria, the study designed to look into different categories of promotional incentives, which are applicable to the airlines industry, and to ascertain the extent of their impact on sales turnover. Questionnaires administered to 450 air travellers, ex post facto, survey research design adopted frequency analysis, regression, and t-Test methods of analysis used. The research concluded that sales promotions involving monetary and non-monetary incentives, with online and offline offers have impact on sales turnover. Therefore, this study joins the large body of research so far conducted on consumer responses to sales promotions over the past few decades to attest to the growing relevance of sales promotions in today’s marketing environment.

Makungu (2018) conducted an online survey on the effectiveness of face book and Instagram advert on increasing purchasing intention in Tanzania a case of nitrogen herbal product. The study involves 100 respondents and it was descriptive, and found that Facebook and Instagram became the popular social media and advertising tool in Tanzania. Face book advertising can be effective on the influence purchase intention to the consumer only if the product information detail is well communicated and shared among users by comments, likes, and different recommendations of word of mouth. The researcher recommended that marketers should extend their marketing strategies and budget to include face book and Instagram adverts, as it’s the easier and faster way of communicating directly to customers.

Tandon (2021) conducted online survey on effects of social media application on increasing sales among entrepreneur. The results showed that active social media users are more likely to product reviews online and 3 out of 5 their own review of the product and 81% of women are more likely to share with others about the product they like compared with men 72%. The studies also reveal that 58% of social media users write product review to protect others from bad experience. Sending bulk messages to customers and clients is one of the most effective ways to market your product instantly and boost sales. WhatsApp broadcast lists allow businesses to add thousands of customers who notified instantly about any business update, announcement, news, product launches and sales.

Park & Chang (2017) Korea, conduct research on doe’s social media influence entrepreneurial opportunity. Use qualitative and findings revealed that important practical and academic implication for how social media affects entrepreneurs and used to increase the ability of entrepreneurs to find new opportunities. Kihombo (2019) in Tanzania, did research about roles of social media on small/medium business performance. In this use questionnaire in data collection and employed 94 participants and the study found that out of social media plays an important role in improving the general performance of business through increasing the number of customers, profit maximization, increase sales growth, product awareness and enhance brand awareness.

Mamun & Nawi (2019) in Malaysia did research about factors affecting the adoption of social media as a business platform such as Instagram, a quantitative. Data collected from 300 selected students’ entrepreneurs in public universities and findings suggest that performance expectancy, perceived trust, perceived risk have a significant positive. Dulanjana & Danstan (2022) in Sri Lanka did research about impact of social media on business performance. The study used questionnaire with a sample of 101 respondents from western province of Sri Lanka who operate their business along with an established social media presence. The study found that the incorporation of social media in advertising help SMEs boost their awareness of customer perspectives and strengthen their customer relation and thereby having a significance impact on their business performance.

Batumalai & Sahid (2022) in Malaysia did research on the effects of social media usage on small enterprises performance use quantitative and the results showed that use of social media is moderately high. Furthermore, the use of social media also has a positive and significant impact on the performance of small enterprises in order to raise awareness of the importance of using social media as a marketing tool in improving the performance of small enterprises. Kajumba & Adekunle (2020) did research on the effect of Instagram among entrepreneurs and the finding shows that Instagram is one of the fastest growing and most popular social platforms for socialization, personal indulgence, and information and product sharing. Based on this premise, it is important to understand the role that Instagram plays in digital entrepreneurship. In addition, it presents Instagram visual power and high number of followers, which enhance sales and attract a new set of entrepreneurs who would otherwise be disadvantaged because of cultural, economic, and political barriers.

METHODOLOGY

This study utilized a mixed-methods approach, combining both qualitative and quantitative research to address the limitations inherent in each method. By employing a descriptive research design, the study aimed to systematically describe the characteristics and behaviors of a specific population, focusing on e-commerce entrepreneurs in the Ilala district, particularly in Segerea and Kinyerezi, with a sample size of 97 out of 130 targeted individuals. The researcher applied a non-probability sampling technique, specifically purposive sampling, to select participants, and data collection was conducted through questionnaires and interviews. Questionnaires provided standardized responses, while interviews offered deeper insights through open-ended discussions. The collected data were analyzed according to their nature, with quantitative data examined using descriptive statistics to create frequency tables, pie charts, and graphs, while qualitative data were analyzed through content and thematic analysis.

FINDINGS

The contribution of technology on the sales performance of E-commerce entrepreneurs

This objective used to establish the contribution of technology on sales performance of E-commerce among entrepreneurs. The findings obtained through interview and questionnaire as presented in Table 1.

Table 1: Contribution of technology on the sales performance of E-commerce entrepreneurs

Source: Field Data (2024)

The findings from Table 1 revealed that, 36 (39%) of entrepreneurs strongly agreed with the statement that, technology can capture, manage, and analyze massive volumes of customer behaviors and buying habits to help optimize sales strategies among E-Commerce entrepreneurs. 50 (54%) agreed while 6 (7%) disagree with the statement. The table also indicated 43 (47%) of entrepreneurs strongly agreed with the statement that the rise of mobile devices has transformed online shopping and increased sales among E-Commerce entrepreneurs. From the same statement 47 (%) agreed while 2 (2%) disagreed. The table further revealed that 40 (43%) on entrepreneurs strongly agree with the statement that mobile-friendly websites and apps facilitate seamless transactions on smartphones and tablets then increase sales among E-Commerce entrepreneurs while 52 (57%) agreed with the statement.

In addition, the table revealed that, 38 (41%) of visited entrepreneurs strongly agree that, platforms like Instagram, Facebook, and Pinterest influence purchasing decisions among customers of E-Commerce entrepreneurs. Among the entrepreneurs 54 (59) agreed with the same statement. Social commerce features allow direct sales through platform such as Instagram, Facebook, and Pinterest, this statement strongly agreed by 27 (29%). The same statement agreed by 56 (61%) and disagreed by 9 (10%) of visited entrepreneurs. Furthermore, the table indicated that, 33 (36%) of entrepreneurs strong agreed by the statement that, automated chatbots like Chart GPT assist customers, answer queries, and guide them through the buying process. Among the visited entrepreneurs 47 (51%) agreed and 12 (13%) disagreed with the statement.

The researcher also employed semi-structured interview to get deep information on the contribution of technology to the sales performance of E-Commerce and one among the entrepreneurs have the following to say:

Advanced technology has great technology on sales performance of our business. For example, I lost my products on Instagram, after sometimes customers press order; I deliver and paid instantly. The mobile application simplifies marketing, track of delivering and paying methods as everything done as fast as possible (Entrepreneurs, 2024).

The other respondent added that;

The use of smartphone simplifies the selling of products and increases the sales volume. I used my smartphone to post my products through WhatsApp and Instagram. For example, I created WhatsApp group then my customers joined there. The power of technology through WhatsApp group allows me to advertise, distribute, and receive payments through inconvenience methods of payments like VISA-Card (Entrepreneur, 2024).

The findings from quotation revealed that, technology simplified all activities related to marketing. The sales volume of E-commercial among entrepreneurs increased with technological advancement application like Instagram and WhatsApp. The findings are similar with the study of Makungu (2018) who found that, Face book advertising could be effective on the influence purchase intention to the consumer only if the product information detail communicated well and shared among users by comments, likes, and different recommendations of word of mouth.

Additionally, the study, conducted through semi-structured interviews, revealed that e-commerce entrepreneurs acknowledge the significant impact of technology on enhancing their business sales volumes. This effect supports the notion that companies utilizing e-commerce can theoretically broaden their market presence while simultaneously implementing mass customization techniques tailored to specific customer preferences and needs. The interviewees noted that computer networks facilitate knowledge sharing and connectivity, thereby accelerating and reducing the costs associated with the communication of identical information.

The findings suggest that businesses leveraging the networking capabilities inherent in e-commerce can potentially expand their market reach, which is contingent upon enhancing the visibility of their operations. The adoption of e-commerce can diminish or eliminate the reliance on intermediaries who exploit their market power to extract excessive profits from companies. However, one entrepreneur expressed skepticism, arguing that the anticipated efficiency gains associated with e-commerce are unrealistic and fail to account for the absence of essential capabilities. In the realm of e-commerce, there exists a disconnect between the culture that underpins e-commerce practices and the realities that reinforce these practices, suggesting that the imperative for opportunity may undermine the resource constraints and local infrastructure challenges faced by businesses in developing countries.

Nevertheless, the results indicate that while e-commerce adoption tends to contribute to increased sales for firms, drawing definitive conclusions regarding return on investment (ROI) remains more speculative than conclusive. This is because organizations through their marketing units have struggled from time past to measure adequately the exact contribution of their marketing activities on the return on investments (ROI). One among visited entrepreneurs added that:

In this trade there is in no intermediaries. The intermediaries are always increasing the price to customers and reduce sales volume. In this mode of business, there is a direct link between retailer and customer. This situation ensures the increase in sales volume of our business (Entrepreneur, 2024).

The quotation from respondent revealed that, the application of technology on e-commerce ensures the increase on sales volumes. The technology excludes the intermediaries who were otherwise affect both price and sales performance among e-commerce entrepreneurs.

Readiness of entrepreneurs to adopt technology

The purpose of this part, which involved semi-structured interview, was to examine technology readiness levels and to investigate the extent of internet adoption among entrepreneurs involved in E-commerce. Demographic characteristics, education level, and internet use as e-commerce to promote their products also discussed due to their possible relationship to technology readiness. The results show the benefit of investigating the profile and background of the entrepreneur and his/her willingness to use/adopt technology to accomplish their goals in their home and working life.

The overall Technological Readiness among the visited entrepreneurs indicates that the entrepreneurs are medium in terms of their technology readiness. There are significant differences in terms of technology readiness across various demographic variables (e.g. gender, education, and age). From the result, it revealed that, the descriptive analysis that entrepreneurs score medium on Technology Readiness (optimism, innovativeness, discomfort, and insecurity). This result found that entrepreneurs exhibited high levels of innovativeness and optimism and they experienced considerable discomfort and insecurity. About the gender variable, only innovativeness found to be significantly using internet or not Using Internet compared to the other variables.

The determinants of technology adoption and usage behavior confirmed that attitudes toward using technology were more salient to men. According to the age variable, innovativeness and discomfort found to be significantly different compared to the other variables. There are clear differences with age in the importance of various factors in technology adoption and usage. Although people feel that they can use the technology without help from others, always follow the development of technology where they have fewer problems than others do. However, few of them also feel uncomfortable and have the perception that the technology not intended for ordinary people.

Some high-tech products are only available with English for use or instruction, so they argue that these technologies not offered in an understandable language. When seen from the descriptive result of education levels, we found that most of the elder entrepreneurs were only educated to senior high school level. Therefore, the study suspects that their English language skills are very low, but it used as material for further research on the level of English language skills among entrepreneurs. The next result is that level of education plays an important contribution to the TR. Respondents with a high degree-level education also score higher on technology readiness compared to other groups. Entrepreneurs who have a high level of education have optimism and innovations but they have high discomfort and insecurity levels.

This can happen because the entrepreneurs who have the benefit of higher education have the ability to analyze, to judge something by looking at the positive and negative terms, so they are more cautious in adopting the technology. Actually, people who have high education have a high willingness to try new things and have optimism that technology can ease their workload. Concerning income, we found that optimism, discomfort, and insecurity found to be significantly different. Furthermore, it revealed that, the entrepreneurs, who have higher incomes, have a high level of optimism. They have seen the benefits of the technology for their work. Nevertheless, here we see that the higher the income, they also have high levels of insecurity and discomfort.

These high levels of insecurity come from the lack of security available online when using credit cards for transactions, or that private data viewed by anyone, and that they feel uncomfortable when there is a lack of person-to-person interaction when only dealing with a machine. This could be due to that sense of discomfort and insecurity, which arise because of not having a lot of knowledge about the ways of doing business online. We can conclude that their readiness for e-commerce services is still low. From the results of the adoption of the internet to promote products, only about 36.3 percent use it. If viewed from the TR, it revealed that the innovativeness was significantly different between entrepreneurs who adopt the internet and those who do not.

The use of social media on increasing Sales Performance

The findings from the field shows that among the surveyed respondents, 40% were male and 60% were female as presented in the Table 4.2. These results imply that in E-commerce marketing platforms, males are on the front line to use online marketing strategies in comparison to males because are the who are responsible in taking care of most of the families in developing countries like Tanzania. These results are contrary to those of Lenhart et al., (2015) who revealed that, historically, women have been more avid users of social media than men have. Therefore, females are the most use of social media marketing and thus are frontier in improving sales revenue of any online business.

In addition, the study results also show that the majority of the surveyed respondents (34%) had at least a certificate level of education, while a few of them (only 2) just had a master’s level as indicated in Table 4.2. This result implies that the majority of entrepreneurs doing online business is educated and thus has knowledge of adopting online marketing strategy in their daily activities and thus contributes to sales volume. These results concur with those of Riddell and Song, (2017) who revealed that highly educated people are faster in technology adoption as compared to the low educated people thus enhancing productivity. Therefore, educated entrepreneurs may increase the sales income of the firm more than other employees do with limited academic backgrounds when using digital technologies like social media marketing.

Furthermore, the findings show that the majority of respondents about 96% are familiar with social media marketing strategies while few of them 4% are not familiar with social media marketing strategies as presented in Figure 1 below.

Source: Field Data (2024)

This implies that most of visited entrepreneurs are familiar with social media marketing strategies thus there is a possibility to adopt these strategies for increasing sales revenue. The study noted that the user familiarity with using social media marketing strategies could attributed to their high level of education since 34% as presented in Table 4.2 above have a certificate level of education. These findings were similar to Kumar and Jincy, (2017) who found that, brand familiarity affects user persuasiveness in their adoption of social media marketing strategies. Therefore, the success of social media marketing use on sales revenue depends on user knowledge and awareness of these strategies. In addition, the study analyses reasons for using social media as a marketing tool of visited entrepreneurs. Results from Table 4.6 shows that the visited entrepreneurs use social media marketing tools for disseminating information; creating awareness about the products; improving sales revenue and obtaining information from customers as presented in Table 2 below.

Table 2: Reasons for using social media

Source: Field Research

The findings as demonstrated in Table 2 above reveal that dissemination of information is significantly positively related to the reasons for using social media marketing platforms thus increasing sales revenues as mentioned by 77 (84%) of respondents. This implies that every unit of dissemination of information using a social media marketing strategy increases sales revenue of particular product. This finding is similar to Zhang (2022) who found out that “the rapid development of e-commerce website shall not only expand traditional sales channels but also changed people’s shopping methods, making online shopping more convenient” cementing the role of social networking system in boosting sales.

The table further revealed that, the creation of awareness about the product was among to the reasons for using social media marketing platforms among visited entrepreneurs thus increasing sales revenues of their corresponding products. This implies that the more creation of awareness done about the about particular product using social media marketing strategy increases sales revenue. This finding is similar to Lockett, (2018) who revealed the opportunities for small retail business leaders to develop online marketing strategies, increase revenue, and provide jobs to the public. Additionally, he found out that “business leaders established direct relationships within the community to increase brand awareness, increase growth, and maintain sustainability.”

These findings imply that online marketing strategies have a direct link to sales revenue. Furthermore, the findings as demonstrated in Table 4.6 above revealed that improving sales revenue mentioned as among of the reasons for using social media marketing platforms thus increasing sales revenues among visited entrepreneurs. This implies that, use of social media marketing strategy among visited entrepreneurs increases sales revenue of particular product. This finding is similar to Ahmad and Guerrero, (2020) who found that social media marketing positively influences small business brand awareness thus increasing sales revenue.

The most used social media platform among E-commercial entrepreneurs

When respondents were asked to rate their common social media marketing platform according to usage, the results showed that Instagram is the social media marketing platform that contributes most to sales income, followed by WhatsApp, Facebook, then Twitter as shown in Table 3 below:

Table 3: The most used social media platform

Source: Field Research, 2024

The findings, as demonstrated in Table 3 above revealed that Instagram is the most used social media marketing platform that possibly contributes to sales revenues. The platform used by 96% of visited e-commercial entrepreneurs. This implies that the e-commerce entrepreneurs use Instagram marketing platform the possibility of increasing sales revenue. However, the findings, as illustrated in Table 4.1 above reveal that WhatsApp significantly related as a next-used social media-marketing platform that increases sales revenues of visited e-commercial entrepreneurs. This implies that, the more entrepreneurs using the WhatsApp marketing platform increases sales revenue as a mostly used marketing platform by 93% of respondents. The same table revealed that, 91% of E-commercial entrepreneurs used Facebook, while 67% used Twitter platform for marketing strategies to increase sales performance.

Therefore, Instagram is the most used social media-marketing platform that the e-commercial entrepreneur’s uses to engage with customers, disseminate information, and create awareness about their products, as the above results show, thus increasing its sales volume. These results are similar to those of Wally and Koshy, (2014) who reported that Emirati women entrepreneurs, especially for home-based businesses, extensively use Instagram. Likewise, Mahmoud et al., (2021) supported these findings by adding that with over 800 million monthly users, Instagram has become one of the most popular social networking sites utilized by individuals and businesses alike.

The study established that, Instagram social media platform used as a technological resource for the business’s purpose of improving sales revenue as applied among the visited e-commercial entrepreneurs. These results also comply with RBV theory which holds that social media marketing strategies such as mobile phones, websites, email, and social media marketing represent technological resources that when applied effectively will help an organization improve sales revenue.

In addition, when respondents asked about reasons for advertising on social media platforms, the findings demonstrated they mainly regard such platforms for engaging with customers, monitoring what customers are saying online, and getting feedback from customers as indicated in Table 4 below:

Table 4: Reasons for using social media

Source: Field Data (2024)

The findings in Table 4 above revealed that monitoring what customers are saying online was among of the reasons for using social media marketing platforms for advertisements thus increasing sales revenues of e-commercial entrepreneurs with 98%. This implies that the use of social media to monitor what customers are saying online using social media marketing advertisements increases sales revenue. At the same time Zhang & Vos, (2014) argue that with technological growth, companies are utilizing new methods of social media monitoring such as sending alerts when the word of interest mentioned.

This pushes the need for e-commercial entrepreneurs to use social media marketing as an advertising strategy thus contributing to sales revenue. In addition, the findings as demonstrated in Table 4.5 above revealed that 74% of respondents mentioned the engagement with customers as among of reasons for using social media marketing platforms for advertisements thus increasing sales revenues. This implies that every time the entrepreneur engages with customers using social media marketing platforms for advertisements increases sales revenue. This finding is similar to Ashley and Tuten, (2014) who argue that social media is key for frequent updates and participation with customers which is closely associated with customer engagement using online marketing.

Furthermore, the findings as demonstrated in Table 4.5 above revealed that getting feedback from the customers as mentioned by 93% of e-commercial entrepreneurs related to reasons for using social media marketing platforms for advertisements thus increasing sales revenues. This implies that feedback from customers using social media marketing platforms for advertisement increases sales revenues. A similar study found that online social media marketing offers touch-points with the customers such as feelings, perceptions, and experiences, and encourages ongoing interaction thus revealing uncovered themes through customer feedback (Ashley and Tuten, 2014).

The use of Facebook helps customers to improve customer complaints handling thus maintaining customers and increasing sales volume. In addition, Ray et al., (2019) added that through interactive media like Images, Videos and now stories with catchy captions, marketers, and brands are able to reach to their audience and receive feedback in the form of likes and comments from their target group.

The influence of information on the sales performance of E-commerce entrepreneurs

The researcher first used questionnaire to collect the data on influence of information on the sales performance of E-commerce entrepreneurs. The views of visited entrepreneurs presented on Table 5.

Table 5: The views of entrepreneurs on the influence of information in sales volume

Source: Field Data (2024)

The findings from Table 5 revealed that 30 entrepreneurs that are 33 % said that product name has most influence on sales performance on E-commerce. Not only that but also 56 (61%) said that there is influence and six (7%) there is little influence of information of product name on sales performance. In addition, 47 (51%) of entrepreneurs said that product description has most influence on sales performance on E-commerce. However, 45 (49%) said that product description has influence on sales performance on E-commerce. The table further indicated that, price of commodity has most influence on sales performance on E-commerce for 88 (96%) and has influence for 4 (4%). Moreover, the product image has most influence on sales performance on E-commerce for 56 (61%) and influence for 36 (39%).

Furthermore, the table revealed that, specification of product has most influence on sales performance on E-commerce by 36 (39%), influence for 32 (35%) and little influence for 24 (26%). Then, availability of commodities has most influence on sales performance on E-commerce by 16 (17%), influence for 58 (63%), and little influence for 18 (20%). The same table indicated that, warranty and return information has most influence on sales performance on E-commerce by 12 (13%), influence for 10 (11%) and little influence for 70 (76%). In addition, the table indicated that, information of related products has influence on sales performance on E-commerce by 9 (10%), and little influence by 83 (90%).

Through semi-structured interview, one among the visited entrepreneurs said that:

1. With mobile application such as Instagram, I can post a picture with all details and facilitate sale volume. Instagram post allow description of product, picture, price, uses, and even availability of product. All these information is important for customer to make purchasing decision and increase sales performance (entrepreneur, 2024).
2. The quotation from respondent indicated that, product information plays a great role on sales performance. Online customers always look for image of product, price, and description on uses or side effect of product.

Influence of sales promotion on sales volume

One among the way of displaying product information is through sales promotion. On this research, study intended to find out whether sales promotion activities conducted in the on line, business has impacts on sales volume. The sales promotion activities intended for the subject included quantity of product available, price discount, exhibitions on social media, and benefit of product.

Entrepreneur Sales Promotions Activities push you to make more Purchases

The aim of this question was to determine if respondents understand the general role of sales promotion plays in motivating them to increase their purchase quantity. All 92 (100%) respondents managed to answer the question and the findings presented in Table 6.

Table 6: Sales Promotions Activities push you to make more Purchases

Source: Field Data (2024)

The findings from Table 6 revealed that, 35% of the respondents strongly agree; while 65 % were, agree with the statement that, entrepreneur sales promotions activities push you to make more purchases.

Product Quantity influence Sales Performance

The aim of this question was to determine if the visited entrepreneurs understand the influence of product quantity on sales performance. All 92 respondents managed to answer the question and the findings presented in Table 7.

Table 7: Product Quantity influence Sales Performance

Source: Field Data (2024)

The findings from Table 4.9 revealed that, 33% of visited entrepreneurs strongly agree that product quantity had influence on sales performance. However, 45 % agreed, 13% disagreed, and 10% strongly disagreed with the statement.

Exhibition of product on social media

The question aimed at getting entrepreneurs opinion on whether exhibitions conducted by manufacturers on social media increases customers and sales at their sales points. The findings of respondents presented in Table 8.

Table 8: Exhibition of product on social media

The findings from Table 8 revealed that, 28% of visited entrepreneurs strongly agree that exhibition of product on social media. However, 47 % agreed, 14% disagreed, and 11% strongly disagreed with the statement.

The influence of product benefit on sales performance

The purpose of this variable was to find out the understanding of entrepreneur on the influence of product benefit on sales performance. All 92 (100%) respond to this question rating either agree or disagree. The findings presented in Table 9.

Table 9: The influence of product benefit on sales performance

Source: Field Data (2024)

The findings from Table 9 revealed that, 13% of visited entrepreneurs strongly agree that product benefit had influence on sales performance. However, 61 % agreed, 11% disagreed, and 15% strongly disagreed with the statement. The study established that, descriptions such as; product names, price, image, specification, and availability always influence purchasing behaviour of customers leading to increasing in sales volume. All these product descriptions could easily publish online with platform like Instagram. The findings of this study correlated with Bukhari & Vaishno (2021) who revealed that, the research reveals that those retailers who are not using social media such as Instagram as a marketing tool should adopt it for its low cost, wider reach, user friendliness and for feedback of customers. Instagram is an imagery-based platform, meaning that what you put on your profile will affect your customers and partners’ perceptions.

The role of distribution on the sales performance of E-commerce entrepreneurs

Distribution is among of factors contributed to increase of sales volume. The researcher asked respondents to rate the influence of distribution on sale s and their findings presented in Table 10.

Table 10: The role of distribution on the sales performance of E-commerce entrepreneurs

Source: Field Research, 2024

The findings from Table 10 revealed that, E-Commerce ensuring efficient product distribution was strong agreed by 30 (33percent), agreed by 57 (62%), and disagreed by 5 (5%). The statement, which state that, E-commercial Expanding market reach and enhancing customer satisfaction strong agreed by 36 (39%), agreed by 46 (50%), and disagreed by 10 (11%). In addition, the statement which state that, E-commercial facilitate the movement of goods from manufacturers to consumers on time was strongly agreed by 38 (41%), agreed by 49 (53%), and disagreed by 5 (5%). Not only that but also, the statement, which state that, E-commercial handling tasks such as warehousing, transportation, and inventory management was strong agreed by 31 (34%), agreed by 48 (52%), and disagreed by 13 (14%). Furthermore, the table revealed that 28 (30%) strong agreed by the statement that, E-commercial offer cost efficiency, economies of scale, and customer support services.

The findings of this study supported by Ahmad et al., (2020) who conducted online survey on impact of social media application on increasing sales to entrepreneurs. The study established that, social media such as Instagram provides a cheap option for businesses to promote their products, helping track customer targets and others social media application increase sales among entrepreneurs and this is due to comments shared by other people on the social media application.

CONCLUSION AND RECOMMENDATIONS 

Based on findings the current study concluded that, E-commercial had influence on sales performance among entrepreneurs. The influence of E-commerce observed on advancement of technology such as the use mobile app, automated chart bots and mobile friendly websites. Advanced technology, information of products, and the role played by distribution had influence on E-commercial sales. The visited entrepreneurship argued that, the use mobile application like Instagram increases their sales performance with low cost of advertisement.

The study’s findings recommend that the government invest in technology and communication development to enhance e-commerce, which has proven to provide employment opportunities for the youth and contribute to the national economy. It is crucial for the government to ensure affordable data prices and stable services nationwide, while the Ministry of Education should integrate e-commerce into the educational system from the primary level.

The research supports earlier assertions that online businesses offer significant advantages for potential entrepreneurs in developing countries, particularly in terms of cost reduction and accessibility, as starting an online venture often requires much lower capital than traditional brick-and-mortar stores. To combat unemployment, the government could implement short entrepreneurial training programs tailored for youth, equipping them with the necessary skills to launch their online businesses.

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