Due to the enormous growth that this industry has experienced in recent
years, digital commerce is now the sector of the Nigerian market with the
fastest growth. Increased technological adoption and the expansion of online
payment platforms in Nigeria are the main drivers of this growth.
The e-commerce market in Nigeria is anticipated to reach its peak of $9
point 02 billion in 2023 and grow at an annual rate of 11-point 74 percent to
reach $14 point 06 billion by 2027, according to statista.com.
Although there are a number of obstacles facing the Nigerian e-commerce
sector, such as a lack of adequate infrastructure, a weak payment system, a
general lack of confidence in online transactions, and unreliable logistics and
delivery networks, these obstacles have had no impact on the sector's
expansion.
During a recent conversation about the importance of this industry in the
expansion of the Nigerian market, he said, Yuliy Shenfeld, Director of African
Operations for Jiji Africa.
"E-commerce has the potential to significantly contribute to the
growth of the Nigerian market by facilitating greater access for business
owners and generating employment in sectors like software development,
marketing, logistics, and customer service. It is a significant growth driver
that would increase the Nigerian market's competitiveness on the international
scene".
Here are the Top 10 Emerging Trends in Nigerian E-commerce
The e-commerce market in Nigeria is anticipated to be shaped by the
trends listed below:
• Increased Adoption of Mobile Technology
Because of the increased use of smartphones and other mobile devices,
more Nigerians are making online purchases. 89 percent of internet users make
purchases online, and another 24 percent plan to do so soon, according to the
National Communication Commission (NCC).
• Growing Interest in Online Payments
Nigerians are more likely to trust online payment systems, which makes it
simpler for them to make purchases online. This pattern has persisted in 2023
as more consumers grow accustomed to using digital transactions and online
payment methods.
• Emergence of Social Media Commerce
Social media attracts significant levels of
engagement from a broad audience, and the global market for social commerce is
predicted to reach a staggering $604.5 billion by 2027. Therefore, social media
platforms will still offer consumers a practical means of finding and buying
goods.
• Pay attention to the client experience
The seamless and customized customer experience that e-commerce
businesses offer, from browsing to delivery and beyond, is becoming
increasingly important. In an effort to set themselves apart from their rivals
and foster customer loyalty in 2023, e-commerce businesses have continued this
trend.
• Shopping in Augmented Reality (AR) and Virtual Reality (VR)
Online shopping in Nigeria has begun to undergo a revolution thanks to AR
and VR technology. The days of imagining how a piece of furniture might look in
their living room or how a dress might fit their figure are long gone. Users
can now test furniture in their homes, virtually try on clothing, and view
products in 3D space thanks to AR and VR applications, which provide an
engaging and immersive shopping experience. In addition to boosting consumer
confidence, this trend lowers the likelihood of returns, improving operational
efficiency for online retailers.
• Personalization and Artificial Intelligence (AI)
One cannot overstate the impact that AI is having on e-commerce.
E-commerce platforms can now provide personalized product recommendations based
on user preferences and browsing history thanks to AI algorithms that can
analyze enormous amounts of consumer data. Customized offers, discounts, and
marketing initiatives help customers feel special, which boosts their loyalty
and increases the lifetime value of each customer. AI will become more and more
crucial in determining how Nigerian e-commerce develops as it continues to
advance.
• Solutions for Cashless Payments
The e-commerce sector is actively promoting cashless payment options,
even though cash is still the preferred payment method for many Nigerians.
Retailers are increasingly accepting mobile wallets, online payment gateways,
and contactless payment methods as they look to streamline transactions, lower
the chance of problems involving cash, and appeal to tech-savvy customers.
• Influencer Marketing
For e-commerce companies in Nigeria, influencer marketing is still a very
successful tactic. Consumer behavior is significantly impacted by influencers,
who have a devoted following on social media platforms. E-commerce businesses
can successfully connect with their target audience and increase brand
awareness and sales by working with local influencers who are familiar with
Nigerian culture and consumer preferences.
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• Omnichannel Retailing
Customers can switch between different channels without experiencing any
interruptions thanks to omnichannel retailing, which seamlessly integrates
online and offline shopping experiences. E-commerce businesses in Nigeria are
adopting omnichannel strategies, setting up physical locations, and integrating
their online and offline presences. Customers can select the most convenient
shopping method based on their preferences and circumstances, which improves
customer convenience and fosters brand loyalty.
• Peer-to-Peer Commerce
This is quickly gaining popularity in the Nigerian e-commerce market,
where buyers can quickly and easily connect with sellers to complete
transactions. The Jiji platform is a typical illustration, where users can turn
unwanted or used items into cash by selling them directly to buyers. Customers
can now easily raise money to finance their projects, businesses, education, or
even japa expenses, which is a huge advantage.
Even though these trends continue to shape the industry and play an
increasingly significant role in the expansion of the Nigerian market, the
country's e-commerce sector is poised for continued growth this year. When
these occur, we would be eager to run the numbers.
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