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!
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.
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.