Mobile will Boost eCommerce to the New Heights of Success
With the advent of mobile phones in the Asia-Pacific and Africa, the whole aspect of communication has experienced a sea change. This has resulted in the boon for the eCommerce market in Africa and the neighbouring areas. By the year 2025, it is expected to have a share of around 10% of retail sales, and cross over 1.4 trillion by 2020. Experts think that the growth of eCommerce in 2018 will be constant and big business opportunities will be achieved.
Mobile communication has become a significant platform to access the internet and this had contributed immensely to the growth of eCommerce. In addition, there are other factors like the growth of online banking, cashless transactions, and of course the global market scenario. This has significantly increased reach and reception. For example, Jumia the renowned retailer in Nigeria has partnered with MTN to allow MTN sim cardholders to browse shopping sites for free.
The dependence on mobile communication in developing African nations has led to faster growth of eCommerce and the mobile adoption rate has increased significantly. In the years to come, eCommerce is expected to grow in the years to come.
Top trends to expect in 2018 in the eCommerce sector:
1. Unmatched opportunity for business: Nations like India, Pakistan and Bangladesh have a modest mobile penetration of around 35%, and so the eCommerce market has a significant market potential. In the coming years, businesses are expected to expand quite high.
2. Competition of the big players: The USA still holds the major share of around 70% of all eCommerce orders, followed by the UK at 13% and China at 10%. Online business in China is growing at a rapid pace.
3. Overseas shopping is on the increase: Most consumers across the globe, including African customers, are ordering from overseas. More than 43% of consumers are making purchases from USA, UK and China. Some of the plausible reasons include:
- Online consumers have now been assured and secured with payment security. Moreover, the process of buying and shipping has improved drastically.
- New products in other parts of the world can now be accessed and bought online. Moreover, the prices have become cheaper than before.
- Logistics services have become faster and cost-effective, which have benefited both retailers and customers alike.
- SMBs are now able to easily import items from other nations without having to face hurdles. Orders can now be processed and drop shipped to the customer’s place without huge capital or expensive pricing.