Digital commerce is becoming the fastest growing commerce in the Nigerian market, as immense growth has been recorded in this sector in recent years. This growth is driven by the increasing adoption of technology and the rise of online payment platforms in Nigeria.
According to statista.com, the e-commerce sector of the Nigerian economy is expected to peak at $9.02bn in 2023 with an annual growth rate of 11.74 percent, resulting in a projected market volume of $14.06bn by 2027.
Although the Nigerian e-commerce industry faces several challenges including poor infrastructure, payment infrastructure, a general lack of trust in online transactions, non-reliable logistics and delivery networks, these challenges have in no way hindered the growth experienced in the industry.
In a recent chat with Yuliy Shenfeld, Director of African Operations Jiji Africa, while discussing the significance of this Industry in the growth of the Nigerian market, he said
“E-commerce has the potential to play a significant role in the development of the Nigerian market by offering increased accessibility for Business owners and Job creation in areas such as software development, marketing, logistics, and customer service. It is a major growth driver that would improve the competitiveness of the Nigerian market on the global stage.”
The following trends are expected to shape the Nigerian e-commerce sector this 2023:
Increased Adoption of Mobile Technology:
More Nigerians are using their devices to make online purchases with the rise of smartphones and other mobile devices. According to the National Communication Commission (NCC), 89% of internet users make purchases online, with another 24% planning to do so in the near future.
Growing Interest in Online Payments:
Trust in online payment platforms is growing in Nigeria, making it easier for consumers to make purchases online. This trend has continued this 2023, as more consumers are becoming comfortable with digital transactions and online payment options.
Emergence of Social Media Commerce:
Weetracker.com reports that the global social commerce market is set to reach a whopping $604.5 billion by 2027, with social media attracting high engagement levels from a wide audience. Hence, Social media platforms will continue to provide a convenient way for consumers to discover and purchase products.
Focus on Customer Experience:
E-commerce companies are placing greater emphasis on providing seamless and personalised customer experience, from browsing to delivery and beyond. This 2023, e-commerce companies have continued this trend as they strive to differentiate themselves from their competitors and build customer loyalty.
Peer to Peer Commerce: This is fast becoming a thing in the Nigerian e-commerce space where buyers are able to easily connect directly with sellers to transact. A typical example is the Jiji platform where people are able to convert unwanted or used items to cash by selling them directly to buyers. One huge benefit of this is that customers are able to easily raise funds to finance their projects, businesses, education, or even japa expenses.
The Nigerian e-commerce industry is poised for continued growth this year, even as these trends continue to shape the industry and play an increasingly important role in the growth of the Nigerian Market. We would be excited to crunch the numbers, when these play out.
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