II. Understanding the Nigerian e-commerce landscape
The Nigerian e-commerce market has grown exponentially in the last decade. The market is driven by its young population that has adopted digital technology due to increased internet penetration and rising smartphone usage.
The potential of the e-commerce market in Nigeria is enormous, with industry reports projecting the market to hit $7,627.6 million this year.
A. Key players
During the early days, online marketplaces such as Jumia and Konga held a dominant position in the Nigerian e-commerce market. Despite the entry of other players, these online marketplaces remain major e-commerce platforms in Nigeria. Other notable examples include Jiji, Cars 45, and more.
The rise of e-commerce and changes in consumer behaviour have prompted traditional businesses, physical retailers, and wholesalers to embrace digital technology and venture into online selling.
In Nigeria, a wide range of products can now be bought and sold online, with some of the most popular categories being food, fast-moving consumer goods (FMCGs), groceries, beverages, alcohol, clothing, and mobile devices.
Moreover, social commerce has gained significant traction, with small business owners using platforms like Facebook, Instagram, Twitter, WhatsApp, and others to sell their products. This trend has allowed them to establish a strong presence in the Nigerian e-commerce market.
B. Consumer behaviour and preferences in online shopping
The rise of e-commerce in Nigeria can be attributed to the expanding middle class, primarily young and urban individuals who have recently gained earning power. This demographic has embraced e-commerce due to its convenience, affordability, and the value it offers when making purchasing decisions.
Furthermore, Nigerian consumers are strongly inclined towards mobile and social commerce, driven by their extensive use of social media and mobile devices. A study conducted in 2021 revealed that Nigeria topped the list of countries in terms of online purchases made via mobile devices.
However, the Nigerian e-commerce market is affected by the country’s infrastructural deficit, resulting in the speed of delivery not being a defining factor. These challenges have influenced expectations regarding delivery times. In most cities surrounding Lagos, deliveries typically take around 24 hours, while inter-state deliveries can take several days and sometimes up to a week.