Lagos - About a quarter of the country's
population has cited the lack of security as the biggest challenge impeding on the adoption of e-Commerce.
This is according to Sumesh Rahavendra, head of marketing for DHL Express Sub Saharan Africa (SSA), who says the recently-released 'Shop the World' nonetheless revealed emerging markets offers the highest growth potential for the eCommerce industry.
He pointed to a recent Jana3 survey conducted in the continent's largest economy, Nigeria, which revealed that 23,55 percent cited the lack of security as the largest obstacle for buying products online.
More than 38 percent respondents also picked cash, compared to 29,52 percent who chose credit cards, as the payment mechanism they would prefer to use when purchasing goods and services online.
"This highlights that consumers on the continent are still familiarizing themselves with the online payment methods," added Rahavendra.
He cited a local company as signifying the potential in e-Commerce.
Also read: The security network of this country is questionable
"An example is Nigeria online retailer, Jumia, which despite being founded only two years ago, is quickly gaining market share within the country which reiterates the region's potential."
The DHL Shop the World report meanwhile revealed that Asia Pacific took center stage in the global eCommerce market, which is largely attributed to increased access to internet.
"Technology on the African continent is a hindrance in terms of connectivity, but we are noticing a rising trend in retailers growing significantly due to advances in this area."
According to figures by the International Communications Union, 16 percent of the African population has internet access, up from 10 percent in 2010.
"As technology continues to evolve in the respective African countries, as will the levels of online shopping. It is of our opinion that many African businesses will start to skip the traditional 'bricks and mortar' formal retail environment, and instead move straight into online shopping space due to the rise in mobile and internet services within Africa," concluded Rahavendra.
- CAJ News