The internet is a tool we all use to our benefit, but it remains underappreciated for various reasons.
What do you use the internet for? Are you surfing the web with the goal of gathering information? Accessing some of the sources of entertainment such as an online casino? Or do you use the internet to run errands and shop online?
With each passing year, the Nigerian people use the internet more and more to purchase items online. The fact that people prefer to buy things online rather than visit the land-based shops has a substantial impact on the Nigerian economy.
Why is that? How many people shop online? And what does it mean? Find out the answers now!
Stats and Numbers
In 2016, the Nigerian people spent about ?327 billion on online shopping, which amounts to approximately $819 million, using PayPal and other popular shopping methods online.
According to surveys, 77% of those who responded used their computers to pay for grocery food delivery, while 69% used the same method to purchase beauty products and personal care products. A lot of the responders also used the available services to buy clothes and restaurant deliveries.
The majority of the shoppers preferred to pay for their purchases upon delivery, aka via cash. However, as time goes by, more people begin to use debit cards and various e-wallets to make the same transactions.
Explaining Those Changes
Even though the economic state in Nigeria is far from stellar, the e-commerce market keeps prospering despite the odds.
Out of 180 million citizens, 62% of the Nigerian people are young people, who grew around technology and they are not afraid to use it. Since more people have access to the internet nowadays, there is nothing that can stop them from using it to their advantage.
Experts believe that in the next few years the e-commerce sector in Nigeria will contribute 10% to the nations’ GDP, which is estimated at ?10 trillion.
However, even though those numbers seem to be impressive, the new online shopping trend won’t save the Nigerian economy. The main reason for that is the fact that the Nigerian people prefer to purchase items from foreign shops rather than Nigerian ones.
At the end of the day, it all comes down to trust. People don’t trust Nigerian merchants whatsoever, which is why they prefer to pay for their purchases in cash only after they get the item they ordered.
Often enough when shoppers order items from local merchants, the item may not be in store or it can take too long for it to arrive at its destination. On the other hand, international businesses that offer the option to order items online, have an advanced system in place that prevents those things from happening.
Popular websites such as Ali Express and ASOS ship the ordered items to the buyers within days, and it takes a few short weeks for the item to arrive in Nigeria. That means that the Nigerian people are willing to pay in advance, using debit cards and other payment options, if that means that they will get their order without delay.
According to statistics, the Nigerian people are willing to buy items online, but it seems that they don’t trust the quality of the local e-commerce options. Due to this trust issue, the money doesn’t go into the local market, and the Nigerian economy suffers from it.
If local businessmen will take the time to perfect their online services, there is no doubt that more people will order items from local shops. That means that with a little bit of effort, the money people spend online will be directed towards improving the local economy rather than funding foreign businesses.
Hopefully, some changes will be made soon, thus allowing the Nigerian e-commerce market to grow and evolve with the rest of the world.