Jiji Africa, an African online marketplace, has listed five possible trends that will impact Nigeria’s e-commerce industry in the year 2023.
According to Jiji Africa, e-commerce is becoming the fastest-growing commerce in Nigeria judging by the immense growth recorded in this sector in recent years.
Faced with several challenges including poor infrastructure, payment infrastructure, a general lack of trust in online transactions, and non-reliable logistics as well as delivery networks, the industry has continued to grow unhindered.
BusinessDay understands that this growth is driven by the increasing adoption of technology and the rise of online payment platforms in Nigeria.
According to statista.com, Nigeria’s e-commerce sector is expected to peak at $9.02 billion in 2023 with an annual growth rate of 11.74 percent, resulting in a projected market volume of $14.06 billion by 2027.
On the significance of the industry in the growth of the Nigerian market, Yuliy Shenfeld, director of African Operations of Jiji Africa, said in a recent interview with newsmen that e-commerce has the potential to play a significant role in the development of the Nigerian market by offering increased accessibility to businesses and create jobs.
He described it as a major growth driver that would improve the competitiveness of the Nigerian market on the global stage.
Here are the five trends that are expected to shape the Nigerian e-commerce sector in 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.
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According to the National Communication Commission (NCC), 89 percent of internet users make purchases online, with another 24 percent planning to do so in the near future.
The 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.
The 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 focus on providing seamless and personalised customer experience, from browsing to delivery and beyond.
It is expected that e-commerce companies will continue this trend as they strive to differentiate themselves from their competitors and build customer loyalty in 2023.
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.
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