Broadband Expansion Driver of N150Bn e-Commerce Industry-Iroegbu

Nigeria's N150 billion electronic commerce (e-commerce) industry is set for significant growth in the next few years, riding on the back of sustained efforts by the Federal Government and the private sector to enhance broadband availability, analysts have said.

 Affordable data cost offered by mobile operators as well as consistent acquisition of smartphones have also been identified as major factors that would drive e-commerce adoption.

 25 percent of Nigeria's over 116 million mobile subscribers use smartphones, according to global market research company, TNS.

Industry analysts expect online sales to reach N1.25 trillion by the end of 2013. Besides, online sales grew 25 percent in 2011 to N62.4 billion, up an additional N12.5 billion from N49.9 billion in 2010.

Kanu Iroegbu, certified digital marketing consultant, is optimistic that this upward growth trajectory in online sales will not recede, because electronic commerce companies are increasingly channelling their energies and resources towards providing locally-relevant solutions to Nigerian customers.

The preceding year has seen e-commerce companies’ move away from merely cloning international brands. In view of this, investor confidence in the e-commerce landscape, according to industry analysts, is growing tremendously.

e-Commerce is growing very rapidly, an estimated volume of about N75 billion was done by e-commerce in Nigeria as at 2012 and if that is correct, in another four or five years we will be looking at N150 billion.

A report has it that with a population of over 160 million and an already thriving e-commerce market, Nigeria is becoming a game-changer in African e-commerce and that Nigeria's Information and Communication Technology (ICT) sector has grown exponentially over the past five years, with the recent implementation of its five-year National Broadband Plan, which will see Nigeria's broadband internet penetration increasing by 80 percent by the end of 2018, the country is likely to surpass South Africa's e-commerce market.

Iroegbu while assessing the security aspect of the development said that “Ecommerce security is a vital part of online trading. It is essential for customers to be relaxed for protection of their account or credit card information while billing takes place.

If this will not be the case, the customer won't take the risk of trading online then, thereby affecting the online trading in a big way.

“With new technology, businesses and companies are modifying their Ecommerce website for more functionality that increases the security and convenience of the user. The four phase of an E-commerce website can be mentioned as given: Brochure ware; Web storefront; One-to-One Customer Relationship and Communities that are of Interest”.

He defined Brochure ware as a kind of an E-commerce tool for the companies.

“A site would definitely be more good and effective if it picks up the advantage of the interactive ability of the Internet like that of navigated links to go ahead and back over the website. One more method of promoting the business online is encouraging the customers for sending questions, providing feedbacks, and inquiring about the products. These contacts can then be further transformed to valuable leads that complement the sales channel of the company, or online services.

“Web storefront - It expands the functionality of the site and includes buying and selling online that allows the customer the chance to visit a site and then purchase services or goods. Web storefront creates demand, acquires information of customer, fulfill the orders and process the payment also.

“One-to-One Customer Relationship - Here the information of the customer that is acquired from the past interaction for personalizing the content of the site, or its services and products according to the needs of the customer and his/her preferences is brought into use. The marketing campaigns on Internet also provide better addressing to the needs of the customer, which can thereby increase the satisfaction of the customer and retain him/her which will thus result in higher amount of sales and more profits.

“Communities that are of Interest - Here the information of the customer is brought into use for identifying and engaging the online community with the personalized services and products that is tailored specifically for the community that is created.

Ecommerce has certainly changed the face of business and made shopping a relaxed and fun-filled experience”.

The Certified Digital Marketing Consultant added that performing trade over the internet is not an easy business therefore designing of E-commerce websites requires good amount of research.