E-commerce in Africa over the years has grown rapidly, and this trend is expected to continue. This extraordinary growth is due to a number of things. Africa has the world’s youngest and second-largest population. As a result, a large digital audience is possible. The widespread adoption of smartphones and other mobile devices, internet penetration has been increased to 11.5%.
There are approximately 281m online shoppers in Africa as mobile e-commerce dominate the online retail market. Different types of digital payments are becoming more common in African countries. This is unquestionably an important part of e-commerce. Credit cards are still in their infancy. Digital buyers employ alternative payment options such as cash-on-delivery and mobile money.
Here are 3 facts you should know about e-commerce in Africa.
The most competitive markets in Africa
The competitive markets in Africa include Nigeria, South Africa, Kenya, Morocco, and Egypt. These are the continent’s five major economies. Online retail is booming in these regions, due to a number of top companies that also operate in other African nations, including Jumia, Konga, Takealot, and Kilimall.
Jumia and Konga, Africa’s most popular online marketplaces, are headquartered in Nigeria. The largest ecommerce platform, Takealot.com, is based in South Africa, while Kilimall started in Kenya.
Due to how mobile e-commerce is so significant, a look at the most popular shopping applications might give you a clearer idea of what the major businesses are. Jumia Online Shopping, unsurprisingly, tops the ranks in Nigeria and Kenya, and is second to Souq in Egypt. Souq is the largest e-commerce platform in Arab-speaking countries and is owned by Amazon. Meanwhile, the most popular fashion buying app in South Africa is the South African e-commerce site.
The mobile money revolution and payment mechanisms
Payment techniques are another component that aids in understanding ecommerce in Africa. As previously said, the African digital payment landscape is highly distinctive. According to data on the transaction volume of selected digital payment platforms in Africa, mobile money payments with M-Pesa were far more prevalent than those made with African credit cards.
Mobile money, which is mostly unknown in advanced economies, is a revolution in other markets, allowing financial services to be conveniently accessed across the country, especially in remote rural areas. Even if the consumer does not have access to the internet, mobile money allows them to receive, store, and spend money using their phone. Cash-on-delivery is another popular payment method, in which customers pay for their orders when they are delivered. Cash-on-delivery became the most prevalent payment option in economies with limited credit card penetration and poor trust in digital payments.
What digital buyers in Africa Spend On
Consumer preferences for what to buy online are also factors that distinguish online buying in various markets. Statista performed a poll in many African nations to find out which things Nigerians, South Africans, Moroccans, Kenyans, and Egyptians like to buy online. Digital customers in all of these countries reported that they buy clothing, shoes, and consumer electronics online.
Despite its phenomenal development, African online shopping remains below the world average, especially in the continent’s most important markets. According to recent data, 57 percent of Egyptian internet users bought anything online. In South Africa, roughly 58 percent of people shop digitally. The global percentage is 77 percent.
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