Digital commerce is becoming the fastest growing commerce in the Nigerian market, even as the director of African Operations, Jiji Africa, Yuliy Shenfeld, has attributed the growth to the increasing adoption of technology and the rise of online payment platforms in the country.
A report by statista.com, revealed that, the e-commerce sector of the Nigerian economy is expected to peak at $9.02 billion in 2023 with an annual growth rate of 11.74 per cent, resulting in a projected market volume of $14.06 billion by 2027.
Shenfeld, while speaking to LEADERSHIP on the trends that are expected to shape the Nigerian e-commerce sector, stated that, 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.
“The reason being that 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,” he stated.
Speaking on the adoption of technology, the director said, more Nigerians are using their devices to make online purchases with the rise of smartphones and other mobile devices, adding that, the National Communication Commission (NCC) revealed that, 89 per cent of internet users make purchases online, with another 24 per cent planning to do so in the near future.
On the growing interest in online payments, Shenfeld said, trust in online payment platforms is growing in Nigeria, making it easier for consumers to make purchases online. This trend, he said, has continued this 2023, as more consumers are becoming comfortable with digital transactions and online payment options, he added.
The director further said, the emergence of social media commerce will also boost the e-commerce, adding that, “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.”
E-commerce companies are also placing greater emphasis on providing seamless and personalised customer experience, from browsing to delivery and beyond, Shenfeld averred, adding that, this 2023, e-commerce companies have continued this trend as they strive to differentiate themselves from their competitors and build customer loyalty.
