Nigeria's upper and
middle classes are growing. Thus, there is a strong appetite for
foreign products such as Juicy Couture tracksuits, Ralph Lauren
shirts and Pulsar. Because Amazon and E-Bay do not operate in
Nigeria, many Nigerians have for a long time, relied on people
going abroad and coming back with classy jewelry, clothes,
electronics and other items. This has changed with the
introduction of homegrown solutions for the likes of Amazon.
Online shopping in Nigeria is emerging and growing rapidly.
Highly Promising Sector
Ecommerce is one of the most promising sectors in Nigeria. It is
attracting foreign investors including international venture
capital firms like Helios, Rocket Internet and Echo VC partners.
Rocket Internet has invested heavily in Jumia while Mall for
Africa has received Helios funding. International investors are
also funding konga.Com.
Local Nigerian investors are also investing in firms that deal
with online shopping in Nigeria. Spark.ng is a local company
providing mentorship and funding to many Nigerian internet
Internet retailers in Nigeria are spending huge. They have huge
advertising budgets. It is common to see OLX and Jumia
advertisements on Nigerian media.
Annual Sales Exceeding $10 Million
Each week, Nigerian online retailers are delivering tons of
products. According to Internet Retailer Magazine, some Nigerian
ecommerce merchants are making annual sales in excess of $10
million. Ecommerce industry in this country is going through a
healthy phase. This will lead to economic growth and more
Different Business Models
Online shopping in Nigeria is taking many forms. There are
coupon selling sites, price comparison sites, offline retailers
with web presence, fully-fledged online stores and websites that
make it easy for Nigerians to place orders in American ecommerce
sites such as Amazon and E-Bay.
A good number of the retailers including Jumia, Kaymu and Konga,
are fully-fledged online stores. They sell only online and have
no physical stores.
Some Nigerian offline retailers have capitalized on the growth
of Nigerian ecommerce by venturing online. This includes
Slotlimited.Com. Slot sales phones, computers and laptops in the
offline world. This company has a number of offline stores.
OLX Nigeria is dominating the free classified ads niche. It
allows buyers to place free product advertisements. Buyers do
not buy from the site but from individual sellers. Therefore, a
buyer has to contact and buy from an unknown seller.
The business model of Mall for Africa is a unique one. It is
based on facilitating Nigerians to buy from leading American and
British ecommerce sites. With this company, Nigerians can
purchase from more than 100 international retailers in an
affordable and secure manner.
Nigeria's Ecommerce Giants
Leading the pack in online shopping in Nigeria are Jumia,
Konga.Com, Mall for Africa, Taafoo.Com, Buyam and
Slotlimited.Com. The top players in Nigeria's ecommerce space
are offering customers excellent service and unique user
experiences. The biggest market players have beautiful and
highly functional websites. They also deliver products on time.
Nigeria's ecommerce giants are majoring on low prices, quality
products and fast service. They are also building strong social
media communities with some having more than 400,000 Facebook
fans and thousands of twitter followers.
There are technological and logistical challenges facing online
shopping in Nigeria. Logistics network is poor in this country.
Payments are very manual.
The good news is that these problems represent opportunities.
People that can solve these problems stand to create big
ecommerce companies out of the problems.
Nigeria is one of the fastest growing countries in the world.
There are more than 48.1 million active internet subscriptions
in Nigeria. These present a huge market for ecommerce. Online
shopping in Nigeria is still young, having emerged in 2012.
Thus, there is room for growth.