Online shopping has become the new norm as many Nigerians are gaining access to smartphones. With the advancement in technology, developments of new features, and access to the internet, shoppers are no longer limited to a single device. They can seamlessly switch between devices without losing out on their purchase journey.
Speaking of convenience consumers can have whatever they order delivered to them right to their doorsteps. Players in the e-commerce space are making online shopping so seamless by leveraging technology, which is directly shaping how people shop.
Discussed in this post are the current trends impacting the e-commerce industry and how new entrants can capitalize on these trends.
E-commerce Trends and Impact in Businesses
81% of Nigerian Consumers now shop online since the COVID-19 pandemic, the surge in e-commerce was perhaps the most notable change in the retail sector in 2020. This pattern has evolved into consumer shopping behaviour as people prioritize convenience, and we don’t expect this pattern abating anytime soon.
One of the biggest advantages of e-commerce is that businesses are able to reach a wider network of audiences. By displaying products online with easy payment methods, customers can shop and are spared the stress of journeying to a physical store, even people who are unaware of your product can learn through targeted campaigns.
The e-commerce industry has contributed significantly to economic growth through increased job opportunities, a rise in international trade, the convenience of online buying and selling, business improvement and creation, an acceleration of financial inclusion, and digitalization. E-commerce is having a bigger impact on today’s economy than one can imagine.
We have seen top players in the e-commerce space launch an on-demand delivery platform known as Quick Commerce, which aims to satisfy and speed up delivery for the fast-growing young population and emerging middle class.
According to the entrepreneur Oscar Pierre, CEO, and co-founder of Glovo (a Q-Commerce service in Nigeria) said in an interview, “The mission is to have everything consumers can find offline including goods sold in the market right on their phones thereby reducing stress and increasing daily productivity”. This will support faster and easier delivery of everyday products to consumers.
As of April 2023, Nigeria ranked first among countries spending more time on social media, meaning entrepreneurs can seamlessly engage their customers online. The use of social media for e-commerce also known as social commerce is currently gaining traction; a lot of businesses in Nigeria are already using platforms like Instagram, Facebook, Twitter, and TikTok to sell their products and services. For instance, Instagram, a powerful business marketing tool with its unique features, has created a platform that allows viewers who see a product they like on a page to buy and complete transactions without leaving the app.
Omni channel is another big e-commerce trend where a single brand today has the potential to reach their customers across multiple touch points, from physical interaction to website visits, social media pages, live chat, mobile apps to phone calls. All of these have resulted in online shopping becoming a smooth experience for shoppers. In this way, brands are also able to offer a personalized customer experience, because customers want to be heard and valued, and once they get what they want, their loyalty is there.
Overall, it is important to know that the business environment is changing rapidly and brands need to take advantage of the latest trends to remain competitive. However, it is also important for companies to consider factors such as policy changes, financial investments, and big data analytics when considering possible trends.
For this reason, researching market opportunities is a step in the right direction for companies. By collecting data from various sources, companies can better understand the dynamics of their target audiences, and develop a comprehensive understanding of the market that gives insights into the competition for customer demand, product prices, and emerging trends. Consequently, it is vital for companies to use market research data as a basis for decision-making.
References
https://businessday.ng/bd-weekender/article/e-commerce-trends-in-nigeria-for-2023/
https://sunnewsonline.com/impacts-of-e-commerce-activities-on-nigerias-economy/
https://www.tradift.com/blog/post/five-e-commerce-trends-online-business-owners-in-nigeria-should-watch-out-for-in-2023/
https://www.linkedin.com/pulse/trends-impacting-nigerian-e-commerce-2023-sumit-shekhar/