What Is The Main Reason For E-commerce Growth Of Nigeria?
The world is moving at a quicker pace, and the advent of globalization that is actively pitched by technology is reshaping the things. Technology right from the time it began has continued to simplify the life of people and made it faster bringing in amazing developments which were not heard before. Similarly, the world is now witnessing the e-commerce growth of Nigeria. The prevailing pandemic has taught humans a lot of things and has shifted the world towards the digital world. Now, most people are dependent on the digital media from manufacturers to end consumers to continue the supply and demand chain.
What Is E-commerce Growth?
Before we see in particular the e-commerce growth of Nigeria, let us first know what is growth in e-commerce and is the e-commerce industry growing? For the past decade, e-commerce or electronic commerce has been growing an average of 154% every year. According to a study e-commerce in Nigeria 2020 grew twice the estimated number. US commerce saw a growth of 32% in the last year and has reached $790 billion from $598 billion in 2019. E-commerce also represents 14% of the combined retail spending in 2020. E-commerce is primarily of 3 types: business-to-consumer (websites such as Flipkart, Amazon, Ajio), business-to-business (such as Shopify), and consumer-to-consumer ( such as eBay). E-commerce sales worldwide reached $876 billion in the initial quarter which is an increase of 38% in 2021.
E-commerce Growth Of Nigeria
Like it affected every other aspect, this Covid-19 pandemic has significantly disturbed the global chain of supply including other activities. During this dark time, many consumers shifted to online shopping for even the smallest things for their daily life. Not everyone did out of choice, some even did to ensure safety.
According to a report of the United Nations Conference on Trade and Development., as the new normal happens to be the lockdown, many users and consumers went digital buying and selling more goods and services on the internet. This drove up the e-commerce share of the global retail trade to 17% in 2020 from 14% in 2019.
As available in other parts of the globe, e-commerce changed the economic and business scenario of Nigeria. According to the e-commerce statistics in Nigeria the revenue from e-commerce is expected to turn out at a yearly growth rate of 11.78% from 2021 to 2025. This rise will result in the increase of the Nigeria e-commerce market size by 10 billion.
Between 2001 to 2008 there was an increase of 90% of the internet users in Nigeria. As of 2021, there are a total of 104.4 million internet users residing in Nigeria. With the growth in the number of internet users comes a huge increase in the online transaction of finance over the years.
One of the interesting aspects of the statistics of online shopping in Nigeria is that right from inception the e-commerce platforms initiated excitement and brought many benefits and the main among them is the ease of buying and selling. For the youth, online shopping is not only an ease of purchase but a demonstration of being highly polished.
While we can continue to discuss the appeal of e-commerce, it is very important to identify and evaluate the current realities and the future of e-commerce in Nigeria.
A decade ago when Nigeria was still fumbling with technological development, the e-commerce business was a very big and new thing to explore for many businesses then. It is very unfortunate to say that there are many startups that are still floating and many have already given up. The main problem of e-commerce in Nigeria is there is no consistent and proper funding for e-commerce startups.
To see a steady E-commerce Growth Of Nigeria there has to be diversification and expansion in the offerings. There are many like Jumia, who is going as distant as adjusting their business structures to improve profitability.
List Of E-commerce Business In Nigeria
With the development and the country shifting more towards digital and to cater to the e-commerce growth of Nigeria there came many businesses in this platform. The list of such e-commerce entities are listed below:
- Jumia Nigeria.
- VConnect Nigeria.
- Printivo Store.
- Jiji Nigeria.
With the new normal of being at home and the prevailing Nigerian citizens have shifted to the digital world for selling and purchasing for which the nation has witnessed e-commerce growth of Nigeria with an increase in global retail trade to 17% in 2020 from 14% in 2019.