The Nigerian economy is growing and e-Commerce is playing a key role in this growth.
Nigeria’s e-Commerce sector is worth more than $13 billion and that market value could rise to $50billion over the next decade.
An important player in the e-Commerce sector is Jumia which recently listed its shares on the New York Stock Exchange. The e-Commerce platform has faced and encountered quite a few challenges in Nigeria.
This did not deter Jumia from dominating the e-Commerce space in Nigeria, it rode on the back of the Nigerian experience and expanded to 13 more African countries.
The challenges of e-Commerce in Nigeria still persist despite efforts from stakeholders to tackle some of them. This article shares some of these challenges and how to overcome them.
1. Mistrust of online shopping:
Since the entry of e-Commerce in Nigeria, you expect that Nigerians would trust online shopping. The fact is more people need to be educated about the fact that online shopping is more convenient and very reliable unlike other forms of shopping. Measures have been put in place to ensure that online shopping is easy and seamless. Hence, there is no need to mistrust online shopping.
2. Preferring to pay with cash:
Nigerians are accustomed to paying with cash. It’s more familiar and tangible than digital payments. However, with digital payments, customers can now make payments without any hassles. It is easy, fast and reliable. To boost prepaid transactions, incentives should be offered to customers like way Jumia Pay is currently doing. Jumia Pay offers customers who shop on Jumia 5% cash back if they prepay for their order.
3. Last mile delivery:
Nigeria’s transportation and delivery system are not equipped to deal with the booming e-Commerce industry. Transport infrastructure is limited and the numbering of streets is not topnotch. This has created obstacles for e-Commerce merchants seeking viable delivery options. To overcome this, many e-Commerce companies now employ the use of the motorcycle which easily navigates these roads and delivers orders in good time. In fact, there are organisations that now use drones to deliver orders.
4. Internet connectivity:
Internet penetration has significantly increased in Nigeria. However, internet connectivity is still a shortcoming. There are still some Nigerian communities that lack internet services which can allow them to order goods online. Infrastructure development is the key to providing Internet to more of the population. These solutions provide infrastructure and reduce the expenses involved in connecting to the Internet.
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