Africa Business News: Entrepreneurs. Investments. Banking & Finance. Emerging Markets. Start-Ups
Tuesday, 17 December 2013
Nigeria’s online shopping is multi-billion dollar business, says operator
The value of online shopping business in Nigeria has been put at several billions of dollars. Assessing the business, David Allison, CEO of Adibba Online Shopping Limited, a new entrant into the online shopping platform, says the e-commerce is being facilitated by the Central Bank of Nigeria’s (CBN) cashless policy.
“With the new cashless policy being gradually implemented in Nigeria, things are looking up. People are getting warmer towards the idea of doing transactions online with several platforms springing up” he says recently.
Allison calculates that Nigeria is over 50 percent ready for e-commerce, saying though there are scepticism about e-payment solutions but the business is growing and will grow as there are over 300 registered e-commerce sites presently, “as more people get enlightened on the business, it will reduce the burden of doubts.”
Allison, who recognises that the e-commerce market in Nigeria is relatively new, says Adibba.com, which is a Nigerian-owned company launched in September 2013, is a platform borne out of the desire to satisfy the ever growing needs of shoppers. “Our product categories vary from electricity solutions to fashion, phones, computer and electronics, food and drinks, games, toys and kids and Africana.
“We are in the market to make everyday experience extraordinary. We go that extra steps to make the customer feel satisfied and it is working for us,” Allison says.
Allison assures that products purchased from Adibba are authentic; because it is in partnership with top manufacturers of different products, however, Adibba operates full money-back guarantee. If goods are delivered and the customer is not happy with it, it could be returned and the customer gets his/her money at no condition.
Recently, BusinessDay reported that total investment in Nigeria’s online shopping market by both local and foreign investors was worth over $15 million (about N2.4bn), with analysts predicting that the figure will double in 2014, as more investors see opportunity in the new sector.
Analysts, who assessed the growing industry, strongly believe that more online businesses will open in Nigeria in the next few months, signalling a belief in the Nigerian environment.
The report quoted CEO of StartUps Partners’ Africa, Jaime Moreno, who told journalists during an interactive session that the country holds huge potential for e-commerce development. His optimism is based on Nigeria’s large population.
According to him, the opportunities are enormous and “we think Nigerians are becoming very brand savvy as consumers’ response had been overwhelming.”
With its population of over 160 million people, Nigeria recorded an estimated 25 percent growth in online shopping in 2011, valued at N62.4 billion, which is an increase growth of additional N12.5 billion to the N49.9 billion recorded in 2010, a survey by Euromonitor International, a global market research organisation, was reported to have said.
“In the next two years, there will be active e-commerce eco-system,” Abasiama Indaresit, senior consultant at Wildfusion, an internet marketing agency, told BusinessDay. Abasiama, who is familiar with the industry, calculates that total investment in the sector is conservatively over $15 million.