e-commerce

Infographic: E-commerce in Africa – Preferences of African consumers in Nigeria, Kenya & South Africa

Emerging markets research firm, Jana recently released insights on the e-commerce preferences of African consumers in Nigeria, Kenya & South Africa. Surveying 600 consumers in each country, the company asked respondents questions ranging from their favorite online store to their favorite payment mechanism.
e-commerceThe African e-commerce industry is ripe for significant growth in the next few years and is already home to a number of local and international players.

Several trends have already emerged in the past year as key drivers of the industry and we enumerate them in our recent e-commerce insight brief: 5 trends driving e-commerce in Africa. At present, South Africa is the continent’s largest e-commerce market with players like Rocket Internet’s Zando, MIH Internet Africa’s Kalahari and Tiger Global backed Takealot.com ranking high. Research by World Wide Worx indicates that online retail in South Africa is currently growing by about 30% year over year.

omobola johnsonNigeria is projected to soon overtake South Africa’s e-commerce market given its massive population and impressive Internet usage numbers. Recently, its Government announced that it is targeting 80% broadband Internet coverage in the country in the next 5 years; an incredibly ambitious goal that could be a game changer on the continent if it comes to fruition. Read more about the country’s plans for its ICT sector here.

Meanwhile, Rocket Internet’s Jumia has quickly risen in Kenya to become one of the country’s top 100 online destinations soon after its launch earlier this year. However, the website still has some catching up to do in strengthening its brand recognition among online shoppers in Kenya.

Undoubtedly, these are early days in the continent’s leading e-commerce markets but it is interesting to see the insights gleaned from some of the continent’s online shoppers.

Some of the responses indicate that work needs to be done on educating African consumers on what online shopping really entails. Some respondents when asked for their favorite website for purchasing goods online for instance mentioned Google. In addition, given that there is minimal usage of some banking products such as credit cards in countries like Nigeria, the large percentage of users indicating a preference for “credit cards” as a means of payments highlights the need for mass awareness on the difference between various kinds of financial products.

Across all three markets, delivery time featured highly as an obstacle for buying products online. In addition, convenience featured highly as the biggest advantage for shopping online.

Check out the insights below.

ecommerce infographic

 

Post Author: CPAfrica.com

Every year, CP-Africa attracts millions of unique visitors that want to learn about technology, innovation & the future of business in Africa. To become a contributor, e-mail editor@cp-africa.com. For adverts and sponsorships, e-mail adverts@cp-africa.com

2 thoughts on “Infographic: E-commerce in Africa – Preferences of African consumers in Nigeria, Kenya & South Africa

  • Asoto Adeola

    (June 3, 2013 - 8:23 pm)

    I carried out a similar survey using 30 respondents in Nigeria and result are very similar. My only reservation is the payment mechanisms(). I do doubt the analysis as Nigerians use their debit card more than credit card as there are relatively low credit facility being offered to individuals in country.

    From the report, I am surprised by the fact that the other countries are still more skeptical about online transactions and prefer cash to other mechanisms in comparison to Nigeria.

    All in all, cash payment still trumps. The issue of trust still remains the topmost obstacle in eCommerce conversion.

    • El_Komo

      (June 6, 2013 - 9:04 am)

      The cash thing with especially S.Africa stumped me too. Obviously one of the major issues to scaling in Africa is providing a cash on delivery process as the business scales. It is very expensive especially with dropped/rejected orders.

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