Africa’s e-commerce sector to grow by $50b by 2018
Africa’s e-commerce industry is projected to grow by $50b by 2018 as the sector presents an exciting opportunity for retailers to grow their businesses by connecting with new customers on the continent.
Co-Founder and Co-CEO of Jumia, Mr. Jeremy Hodara, said that the e-commerce sector must focus on delivering a stronger consumer experience in order to achieve the set goal.
Hodara said that online retail environment in Africa is largely untapped considering that seven of the 10 fastest growing internet populations in the world are in Africa.
According to him, Jumia, Africa’s number one online retail platform has joined forces with technology company, Mastercard, to drive cash out of the online retail sector and provide a more secure and convenient way for consumers to shop online, adding that many online purchases are still being paid for with cash at point of delivery.
He said: “Developing stronger and streamlined online retail platforms and offerings is necessary to unlock the full potential of e-commerce on the continent. Optimizing the overall customer experience by guaranteeing safer and simpler payments means opening the online retail environment to greater number of African citizens,”
The Jumia’s boss, however, stressed that cash is still widely used by consumers and e-retailers, adding that at Jumia, for instance, between 65 and 95 per cent of all orders are paid using cash on delivery, a percentage that varies according to the countries in which the e-retailer operates.
“Consumers are still hesitant about paying for items online which contributes to the drop off at check-out and abandoned online shopping carts”, he said.
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