Nigeria Ecommerce Market Size and TrendsAbbakin
If you are stating an online business in Nigeria, or you’re investing in existing business and now wants to go global; here is the Nigeria ecommerce market size and trends you need to know. We can help you design a professional eCommerce website, write your products descriptions, integrate social media marketing, corporate branding and search engine optimization strategies to grow your business and increase your online sales.
As you would expect, this post contains the statistics of online shopping in Nigeria with data from reliable sources and trade institutions. So; looking at Nigeria with a population of over 180 million people, the journey of e-commerce businesses in Nigeria have had tremendous impacts on retail business transactions in Nigeria and have influenced the nation economy greatly.
This is because out of the 180 million Nigerians, 62 per cent are youths – which represent a potential audience as they are highly connected on the internet via the usage of mobile phones. Thanks to the Nigerian mobile operators and advancement in global technology landscape.
Based on the data from the Nigerian Communications Commission (NCC), mobile network coverage in Nigeria is currently estimated at 77 per cent on the basis of 185 million as the country’s population. However, the Internet data penetration via the Global System for Mobile Communications (GSM) is still at 50 per cent; while other providers are estimated at 10 per cent or less.
Thus, the potential impact of a thriving e-commerce market in Nigeria is its improved trade activity as this provides a cost-effective method of connecting producers and merchants directly to online customers. Therefore if you are thinking and researching about the Nigerian online market size and trends; the time is now ripe for you to connect your great products with the Nigerian buying communities through the global revolution of e-Commerce.
Why You Start eCommerce Business in Nigeria?
Currently, the e-Commerce market in Nigeria is worth over $13 billion; according to a report by London based Economist Intelligence Unit (EIU). Experts in the Nigerian financial service sector have also estimated that Nigeria’s e-commerce market value could rise to $50 billion (N15.45 trillion) over the next 10 years.
The National Bureau of Statistics (NBS) predicted that the e-commerce sub-sector was expected to contribute about 10 per cent, of a projected N10 trillion, to the nation’s Gross Domestic Product (GDP) in 2018. With the increasing penetration of internet in Nigeria and across Africa; this is a huge market and the sales volume is bound to continue progressing in the coming years.
Nigeria Ecommerce Market Potential and Major Players
With the effect of Covid 19 pandemic, the demand on e-Commerce products and services are still changing; and the supply chain is also evolving. Customers are now asking ‘why they should buy from many Nigerian stores and why they should order your products?’ The industry giants, such as Jumia Nigeria, Konga Online Store, Mall for Africa, Jiji etc., are leading the African charge to boost the continent’s growth of online based retail businesses.
Nevertheless, for e-commerce to attain its full potential in Nigeria, physical infrastructural issues, logistics challenges, trust, as well as e-fraud challenges need to be tackled by well planed government and stakeholders policies and strategies. Also; the logistics challenges that pose danger and delay to the movement of goods and passengers across the country is threatening the shopping experience, delivery of ordered products and the e-commerce industry in Nigeria.
What We Learnt from Jumia & Konga Online Stores
According to Konga, the e-company has a customer pool of 750,000 online shoppers. However, there are only 200,000 active customers. Though the rural population accounts for only 10% of its total active customers, this could be due to low internet penetration and poor electricity supply in rural areas in Nigeria; as well as low income levels in the current downturn.
A report released by Jumia on the Nigerian Mobile Sector revealed that 70 percent of Nigerians preferred the cash on delivery option to other forms of online payment (like the credit/debit cards payment, and the mobile money option). Despite the Jumia Company operating in 10 other African countries, analysts pointed out that the e-commerce industry has also witnessed reduced patronage at the back of the current economic recession.
The Economist Intelligence Unit (EIU) also noted that the rising affluence of e-commerce is not causing Africans, especially Nigerians, to abandon the traditional shopping methods entirely; but it is helping an increasingly inspirational consumer base nation to broaden its tastes. Again, while Jumia is able to deliver to less accessible places or locations in Nigeria, sourcing goods from shops or stalls is not as straightforward though.
Final Thoughts: Nigeria Ecommerce Market Size and Trends
Abbakin is a Web Design, Branding and Digital Marketing Agency in Nigeria based in Lagos. We work with individuals and eCommerce companies in creating advertising campaigns, driving website traffics, generating leads and converting site visitors into customers. We can develop online shopping systems, integrate online payment gateways and craft effective marketing strategies to suit your kind of business or niche.
As a business owner who is ready for online growth, you need to understand that the traditional business models do no longer fit into the digital economy. You need to have a long-term business strategy and take a quantum leap into technology in order to be able to capture business opportunities in the Nigeria online marketplace.
All of the competitive approaches to consider would be best decided by the customers as they are the ones how know what represent value for them. In the last few years, the number of change in the retail sector has altered the tastes on how people want to access the market. Since there are many people involved in the buying cycle, you need to understand who the right customers are; and be able to analyze and project the target market share to your advantage.
Interestingly, strategies built around competition are at best being reactive; while corporate branding, strategic marketing plans and digital marking services will give your business a differential boost. In that wise, it’s important not to ignore who your competitors are, rather; to design your marketing objectives with real-life online shopping trends in Nigeria or in your industry.
An online shopping system is a collection of digital tools and telecommunication elements that enables shoppers to initiate and complete business transactions with your company website. We help startups enterprises grow their businesses using such digital technology. For increased awareness and sales, best ways to reach more online customers are through mobile apps, responsive websites and online promotions.
The economy has changed – so social platforms (i.e. Twitter, Facebook) and digital marketing strategies are the best ways to drive awareness for your business. The Abbakin brand has been able to position and sustain itself as a home-grown digital marketing company in Nigeria that can be competitive in the international market. With our experience team of marketers and web developers, we are ready to help potential entrepreneurs break into the Nigerian ecommerce industry easily.
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