ONLINE STORES IN NIGERIA RECORD A NEW HIGH
Good times are here for online stores in Nigeria as a recent survey suggests that 38% of Nigerians now trust and buy items online. This means that approximately 64 million Nigerians now buy different items online.
The survey which was conducted nationwide by Philip Consulting, a business and management consulting company stated that online stores in Nigeria record a transaction of $2 million per week. This is approximately N320 million per week or N1.3 billion per month.
According to the survey, Nigerians bought fashion products, mobile phones and services like restaurants and spa deals mostly among other online businesses.
The cheering news about online stores in Nigeria is that items that are returned after sales are less than 20% of purchases per month. This I believe is good news for the online entrepreneurs and also for most Nigerians who are still not at peace with buying their items online. The populace is gradually building confidence on online stores in Nigeria.
The consulting firm said in the survey report that “Online merchants most often make use of their own delivery facilities and staff to convey items to customers, however, external couriers such as DHL, UPS and Fedex are sometimes used for out-of-state deliveries”.
From retailers’ perspective, the success critical factors in the industry include a nationwide delivery system, value for money, a wide variety of products and services and consistency. It also reports that some of the biggest challenges faced by online retailers include poor customer service culture, city navigation and logistical issues and under-stocked items
Though online stores in Nigeria have been in existence for quite some time, many Nigerians are yet to embrace the culture of online shopping, it said. The report said “The larger proportion of our respondents, 62 percent, still prefers to shop through traditional retail channels such as open markets, supermarkets, street shops and malls. Most of those who say they prefer to shop online still continue to shop using these traditional channels.”
According to the survey, Jumia remains the top favourite online store taking up 38 percent, Jumia is owned by a German e-commerce company, Rocket Internet and telecommunications companies, Millicom and MTN, Konga scored 25 percent while DealDey scored 15 percent. OLX scored 10 percent; Kaymu.com scored 3 percent while other online stores in Nigeria shared the remaining.
The report said despite the increasing depth of internet penetration in Nigeria, users do not appear to use it exhaustively for online shopping. “Although, the latter’s emergence in the country is fairly recent, steps need to be taken to provide Nigerians with an understanding, acceptance and utilization of the platform. Likewise, efforts by complementary sectors of the economy should be made in conjunction with online retailers to change the mindset of non-users and encourage online retail.”
Also, a survey done by us suggest that most Nigerians do not patronize Online Stores because they are not very okay inputting their debit card details on the site which they do not trust. They are afraid their Debit Card details may be hijacked.
Warning: Their are lots of online stores in Nigeria now, selling one fake product or the other or promising you a shopping voucher in exchange for your personal information. Be careful with the ones you patronize. I will advise you use the common and already trusted online stores.