Why Leverage E-commerce Sites For Your Business?
E-commerce in Africa has been positioned for significant growth in the next few years and is already home to a number of local and international players. The sector has been gaining momentum in a number of countries. The African e-commerce industry is ripe for significant growth in the next few years and is already home to a number of local and international players. That’s why this is the best time to begin to leverage e-commerce sites for your business!
Photo credit: eMarketer
E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, internet marketing, and online transaction processing.
Simply put, e-commerce refers to commercial transactions conducted online. These business transactions are carried out as business-to-business, business-to-consumer, consumer-to-consumer or consumer-to-business.
There are various methods by which e-commerce is carried out, however, the most commonly practised classes of e-commerce are “Business to Consumer” (service to end user) and “Business to Business” (e-vendor)
With deepening internet penetration, 50% of the continent is expected to have access to the internet by 2025, online shopping could account for 10% of retail sales, or $75 billion. The foremost factors responsible for this growth are:
A Young, Tech-Savvy Generation:
A large percentage of people between the ages of 18yrs and 35yrs in Africa make up roughly 66% of the population on the continent. A youthful advantage that has accelerated the continent’s growth in the global economy.
The Increasing Mobile and Internet Penetration:
As evident in the diagram below, the increase in the use of mobile phones and ever increasing internet accessibility makes e-commerce website a pool big enough for every business to swim and grow if effectively implemented and managed.
Photo credit: Internet World Stats
Mobile Payment Solutions:
The development and introduction of indigenous mobile payment solutions, most notably “Paystack”, has contributed to the growth of the e-commerce market in the ever-growing economy of Nigeria and Africa at large.
A Booming Financial Technological Sector:
The growing support of financial investment for the technological industry from local and international institutions has endeared the heart of the aspiring and competent youthful population to embrace e-commerce massively. There are already indigenous e-commerce giants competing with the world most global brands, which is a testament to the growth of e-commerce in Africa.
Advantages of Leveraging E-commerce Sites
In Nigeria, a business owner is presented with 60 million active users of the Internet, according to the Director and Lead Digital Advisory Team, Ernst & Young, West Africa, Mr Dapo Adewole.
He also said that Nigeria’s e-commerce spending was currently put at $12bn and was projected to grow to $75bn by 2025.
The advantages of leveraging on the availability of e-commerce sites for your business will not be fully understood without the full understanding of the some of the importance of an e-commerce to a business and the economy at large.
Photo credit: Statistica
The advantages that business owners have cannot be overstated. Its benefits have been the driving force behind the increasing index for e-commerce growth globally.
Most noteworthy among the benefits are:
- It is cost saving on operational and office management expenses
- It helps your business to establish an online presence equipped with a pronounced social media integration system
- It equips your customers with adequate information readily available in the catalogue
- It helps your business to serve niche markets from which prominence will be attributed
- The seamless accessibility to customer data helps to understand the interest of each client and how to help meet their needs
- It is easy to retarget or remarket to the customers acquired via online transactions based on their transactional history
- It helps to boost brand awareness, especially when your business takes advantage of all the well-established business to business e-commerce brands
- It helps your business to be known in the international market by leveraging the global nature of the social medium integration and the limitedness of search engines
- It strengthens your online conversions and sales, through convenience experience and time saving transactional procedure
- Most importantly, payments can be received through online banking, credit/debit cards, or online payment portal through your preferred integration system.
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