Indications have emerged that majority of shopping done in Nigeria today by people living between middle and upper class are online while other who are yet to fight the fears of frauds still shop offline.
Business Hilights investigations on why many are yet to join online shopping show that even those that are within the upper class also have cold feet in online shopping, but majority are many that are yet to be android and IT compliant. Some of them are not ready to join the chorus due to fears they may or may not explain publicly.
Both banks and online shopping companies are highly complementary and clearly instrumental in enhancing financial inclusion in the economy. With the use of internet enabled mobile phones and SMS (leveraging the telecoms sector), mobile devices are increasingly being used for financial services in Nigeria, thereby making it possible for customers to conduct financial transactions using these channels.
As more bank customers become financially included and access banking products through digital and mobile platforms, they become more amenable to e-commerce, thereby expanding it further.
Besides, our findings further revealed that nobody is making efforts to convince offline shoppers on the gains of online even as the platform remains on the rise.
Shopping online can best e described as Electronic commerce, commonly called e-commerce. In a short form, it is the trading or facilitation of trading in products or services using computer networks, such as the Internet or online social networks.
The platform has been growing along with companies offering the services in Nigeria, thus making online shopping, a strong catalyst for economic development in Nigeria- led to the creation of jobs; boosted productivity; hugely reduced the cost of doing business; and provided access to new markets.
Two entities can be said to be driving the deal including money deposit banks who has raised their bars in electronic banking and online retailers that are growing everyday in the country.
Whereas banks tend to provide the payment platforms vide transfers, PoS and others, the online shopping companies scout for goods and services that are regularly sought by buyers and creating awareness on the availability and readiness to deliver on the shortest time possible.
Stemming from their industry experience, banks have assisted businesses in adopting e-commerce in their delivery of goods and services, especially in setting up the infrastructure and payment capabilities for them to successfully engage in e-commerce, thereby enabling such clients receive payments efficiently for the goods and services they offer.
A report commissioned by the Banking Committee of Nigeria (BCN), said “customers are conveniently able to pay for services such as electricity and water bills, Internet and cable subscriptions; airline and cinema tickets; even financial services like insurance and payment of taxes from the comfort of their homes”.
“Some of the benefits that businesses have gained from implementation of e-commerce are increased revenue as they are better able to reach more customers, achieve higher customer satisfaction, cost reduction, and overall improvement in efficiency.
“Deposit money banks have contributed to the growth of e-commerce by gradually pulling customers away from offline branch banking onto online banking, which includes e-payments and mobile transfers. By encouraging the use of payment technologies, and offering more of their products digitally, banks are discouraging customers from standing in long queues, thereby ensuring their convenience.
BCN also noted that “Apart from the infrastructural role that banks have had to play in the sector, they have also continued to provide their traditional services to players in the sector such as financing support to e-commerce enterprises in the form of working capital, financing for expansion, among others.
Currently, the online platforms that are making waves in Nigeria are growing daily.
For example, due to the financial intelligence of Access Bank, it assisted Uber’s expansion drive in Nigeria. Access bank established a financing scheme in conjunction with KIA motors and Hyundai to grow Uber’s footprint by increasing its drivers by as much as fivefold. First bank also pushed this drive forward by helping drivers acquire used cars at relatively low interest rates.
Today, Yudala is championing both online and offline shopping across the country with excellent services in partnership with some select banks.
Jumia Nigeria also partnered with First bank to set up a consumer finance scheme, where customers can purchase items on credit from the online retailer through a First Bank Naira Credit Card.
Yandi online shopping has just come on board with high level activities capable of sweeping the market.
Fidelity Bank also recently launched The Fidelity GreenMall, an online marketplace with fully integrated e-commerce capabilities for online payments, delivery logistics, advertising, and business networking opportunities, amongst others
Konga likewise partnered with One credit, a Nigerian micro-finance bank to launch the “Buy Now Pay Later” scheme, an affordable consumer credit facility that enables customers pay for online purchases in equal monthly installments.
Recently, GT Bank launched “The SME MarketHub”; an e-commerce portal for Small and Medium Scale Enterprises (SMEs). The portal is designed to enable Nigerian entrepreneurs migrate their businesses online and take advantage of the vast international and local sales opportunities within this space.
Though bad experiences in online shopping can be said to have dropped to the barest minimum since the few cases involving one of them that came from South Africa, statistics show that the business will continue to rise in the country as both banks and the technology used are all coming up with new ideas to serve the shopping public.
