Neo Market: A Case for E-Commerce in Nigeria

The use of the internet for marketing,  payment in exchange for identifiable goods and services and its delivery; sums up e-commerce activities. It has become quite popular in the Nigerian economic scene, fuelled by the wants of an estimated 180 million citizens, 60 percent of which are active internet users; leaving a chance for 40 percent expansion. E-commercial activities have revolutionized the way business is done in Nigeria, a business transaction can now be conducted at the tip of your fingers, just by the push of a button. With the increase of mobile penetration and falling cost of data, more Nigerians are switching over to using online platforms to have their needs met. The current estimate of the volume of online transactions in Nigeria is $12billion and is said to rise to $75 billion by 2025. Nigeria even with ailing infrastructural backdrop is ranked 7th on the list of internet users in the world, with 22.4 million active users on facebook monthly (11.9 % of its population), 19 million active of twitter.

One of the major players Jumia, a venture-funded company in 2016 reached a billion dollars valuation with reported revenue of $149.6 million dollars in revenue by 2018. It has competition in firms like Konga, Payporte, and Vconnect.

New ideas are daily being designed and niche being crafted to meet various needs, budding entrepreneurs are taking advantage of social media platforms to network.  Brands now have to engage their target audience with their unique value prepositions online or run the risk of being perceived as archaic.

The future of the E-commerce/ service-providing sector is still budding with the infusion of technology and logistic business, e-commerce still has a lot of room for growth. This is already apparent in the growing trend of online payment platforms, this has helped foster ease of payment as we edge on towards a credit-based cashless economy.

The key to exploring this silver lining is creative thinking, using technology to make life in a challenging economic climate, more productive. Jumia now operates in more than 10 African countries,  has expanded into travel and foods, they could grow to rival Amazon in the not too far future. The growth of online trading is the spur we need to get local products out, as it gives our ailing economy a fighting chance like the sling and pebble in the hands of a giant killer.

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