E- commerce ,is an electronic way of doing business, where people can use the internet for their needs like, paying their bills, shopping online, applying for job vacancies, registering for exams etc.
As a result , it tends to boost business activities and create doubly employment opportunities and the convenience of shopping with little or no stress involved and almost all payments are processed quickly and efficiently. It puts especially the small and medium scale enterprises (SMEs) in the front line thus making them competitive in the market.
With an emerging growth in e-commerce, Nigeria is fast approaching an increase in economic growth. A major player in the e-commerce industry, co-founder of Jumia.com , one of the leading online retailers in Nigeria, Mr. Tunde Kehinde, who was reffered to e-commerce as the process of buying and selling of products or services on the internet, stated that the internet has no doubt come to stay with its amazing possibilities.
Stating that with over 160 million people, Nigeria stands a great chance to become the next e-commerce hub of Africa, he said: “Online shopping has changed the way customers and retailers think. Customers are constantly seeking to comfortably shop endlessly while retailers are constantly seeking new paths to growth. A country’s prospects for online retail success are closely related to how many are comfortable purchasing products online in terms of security and customer satisfaction.”
According to Kehinde , Nigeria recorded an estimated 25 per cent growth in online shopping with revenues valued at N62.4 million in 2011, which is N12.5 billion increase from 2010 as reported by Euromonitor International, a global research organisation.The value of online shopping business in Nigeria has been put at several billions of dollars.
Assessing the business, David Allison, CEO of Adibba Online Shopping Limited, a new entrant into the online shopping platform, says the e-commerce is being facilitated by the Central Bank of Nigeria’s (CBN) cashless policy.“With the new cashless policy being gradually implemented in Nigeria, things are looking up. People are getting warmer towards the idea of doing transactions online with several platforms springing up” he says recently.
Allison calculates that Nigeria is over 50 percent ready for e-commerce, saying though there are scepticism about e-payment solutions but the business is growing and will grow as there are over 300 registered e-commerce sites presently, “as more people get enlightened on the business, it will reduce the burden of doubts.”
Recently, BusinessDay reported that total investment in Nigeria’s online shopping market by both local and foreign investors was worth over $15 million (about N2.4bn), with analysts predicting that the figure will double in 2014, as more investors see opportunity in the new sector.
The Nigerian government should ensure to get more public services online to further drive e-business, Mr Tunde Kehinde said. “If the government can use internet to give public services, the general society will adapt itself with the technology easily and this will greatly affect the advancement of electronic way of doing business in the country,” he said.
He said :”Having realised the potential of e-commerce in any developing nation, all concerned bodies must co-operate to make a big difference. The government, experts in the e-commerce industry, online merchants, banks and other stakeholders must work together collaborate, in order to avoid obstacles and benefit the nations from the outputs of e-commerce.
Culled from Bussinesday