In the last few years, there’s been a significant increase in the number of people shopping online. This in turn has led to increase in the number of ecommerce platforms in the country, as everyone want to take advantage of the many benefits the Internet presents.
We’ve seen ecommerce stores for fashion, groceries, gadgets, and even auto-parts.
On the basis of its high business environment opportunity potential, a newly released research by the Economist Intelligence Unit (EIU) has revealed that Nigeria is in pole position to take advantage of the Africa region’s e-commerce potential projected to reach $50 – $75 billion within the next 5-10 years.
From the report, here’s a few details of how ecommerce is performing in Nigeria:
- The report which relied on data generated by the research and analysis division of the Economist Group, stated that the old informal structure of retail businesses is being replaced with a newer trend, which is the e-commerce model.
- Growing appetite for smart phones, mobile usage and wider network coverage has allowed many Africans to embrace the potential of e-commerce using their mobile devices.
- Using a metric of per 100 people, Nigeria scored 80.4 out of 100 to lead the entire continent as the country with the greatest potential opportunity within the wider African ecommerce market.
- Leading the charge for Nigeria, are the three main online retailers such as Jumia, Jiji and Konga, which serve a mass-market clientèle.
- In terms of Internet usage, Nigeria’s mobile internet subscription – at 91.9 million, is said to represent one of the highest rates of mobile Internet usages in the world. Further important to note is Statcounter, a web-traffic analysis tool, which put Nigeria in the lead of countries with the highest percentage of online sites viewed on mobile phones, at 81 percent, compared with the global average of 50 percent.
- Despite having one of the lowest levels of mobile connectivity in the world at just 81 percent compared with 139 percent for Eastern Europe, seven of the ten fastest-growing Internet populations in the world are in Africa, according to data from Hootsuite and We are Social.
- Growth in consumers’ enthusiasm towards e-tailing or e-commerce for Nigeria, the report noted, is being driven by recovering global oil prices. Following the period of recession, many major shopping mall projects were halted. The entrenched informal retail system benefited immensely. E-commerce sites were patronised as complements, not as first resorts.
- A growing consumer interest in fashion and apparel sector, accounts for majority of sales in the sector. Here again, Nigeria also takes the lead, as its online apparel market is projected to grow from $104 million in 2014 to around $1.1 billion in 2019, according to Euromonitor International, a market research firm.
Ecommerce has become really big in Nigeria. It’s redefining retail, and offline stores are beginning to migrate to serve the growing number of online customers.
If you’re into retail and thinking of selling online, you can start with these online stores.