Nigeria Ecommerce Table of Contents
In the Nigerian population and the expanding economy, the largest in the continent and is an interesting emerging market. With 162 million telecom service users in 2017, the population was around190 a million, making it Africa's largest mobile market with an 84% rate of penetration. These technologically skilled customers are increasingly interested in online business and greater access to the global economy. GDP is expected to increase by 2.6 percent in 2019 and is also promising.
Historically, Nigeria has a political history of strong ethnic divisions that is both ambivalent and often brutal. But Nigeria has been a federal democratic republic since 1999, shaping its policy in existing democracies like the United States and the UK, while still incorporating complex customary regional legislation. Like all young democracies, Nigeria has had difficulty in teething, but many businessmen agree that the political situation does not hinder change because people are demanding more from the government about transparency and economic change.
The total increase in e-commerce in Africa is as high as 25.8 percent in the whole world, which makes full market sense for the most populated country in Africa.
The e-commerce industry in Nigeria, leaving a minute to sit at the barrier of trade in Nigeria (an average of 25% a year). There are prospects, infrastructure is created and ambitious growth efforts underway but seeds must be seeded early on and some growing pains must be made available.
The two large E-Commerce sites in Nigeria are Jumia and Konga, they pave the way for innovation and enhanced technology, enhancing services and consumer engagement through substantial investments made by international companies. Figures reveal the total investment of 200 million dollars for the Nigerian e-commerce market.
Konga approved payment on shipment until recently, like many other Nigerian e-commerce sites, 78 percent of Nigerians would prefer this method. Shola Adekoya, the former CEO of Konga, addresses the contentious decision to pull the plug on the POD (payment on delivery)choice of its service during a 2018 post on Medium:
There is have less concerns, order delivery time has fallen by 20 percent, as we arrive quicker, and the deliveries failed are down to 1.9 percent from 25.2 percent. (moving toward less than 0.5%)
Initially, Payment On Delivery has helped to gain credibility and trust, but it was costly and time-consuming for any growing enterprise to push payments to the country's national-level - 'We are now in a position to consolidate customers journey on the network easier and spend time on customers experience...,' Adekoya continued.
This has, without a doubt, been adverse to the business because the bulk of the population of Nigeria is unbanked, but still, it is a vital step. The demand for FinTech innovation in the country provides a profitable incentive for businesses in the industry to enter a market that is equipped and prepared to enter into e-commerce.
Some of Nigeria's common payment gateways are Paystack, Flutterwave, GTPay, and Interswitch, but a long way to achieve trust among the Nigerians remains to be done.
Like the others, the Internet is being used by Nigerians to pursue decent sales and discounts. The country has one of the world's youngest (62%) populations, who are in need of information, convenience, and value for money.
Corporations seeking to penetrate the market would still need to harness the influence of social media to gain consumers, sites like Twitter and Facebook play a major role in Nigerian daily lives. Public targeting and transformation are certainly one of the trickiest components of Nigeria's online market. In online sales, 55% of consumers are browsing and purchasing from their telephones, which will make a fully-functioning mobile website so significant.
The Asian Research Journal of Arts and Social Sciences notes that most Nigerians still tend to lease, buy like Buy Today, Pay Tomorrow transactions and this, naturally, does not help to the e-commerce pattern and a cultural change is necessary to bring consumers into online confidence channels and purchasing commitments.
For many Nigerians online shopping is also a privilege and relatively skeptical. Businesses and governments must work to ease the process from acquisition to distribution by decreasing the expense and risk of placing orders online and improving overall customer service.
In 2016, 52% of surveyed people confessed to challenges while shopping online. Despite the obstacles, this offers creative companies an ideal chance to settle in the market. This depends primarily on informed business choices and partnerships with trustworthy and experienced companies who have stable networks and a profound understanding of the Nigerian customer.
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Shopify is a software company that specialises in ecommerce software for small to enterprise level businesses.
Shopify is listed as the best ecommerce software related to Ecommerce Platforms. Shopify was founded in 2006 in Ottawa, Canada and currently has over 6,124 employees registered on Linkedin.