- Nigeria Leads South Africa, Others in Online Shopping
A recent survey has shown that Nigerians shop more online than other sub-Saharan African (SSA) countries.
According to GeoPoll, which conducted the survey on five African countries including Nigeria, South Africa, Uganda, Kenya and Ghana, said though there have been significant growth in online shopping on the continent, but SSA still don’t trust e-commerce sites.
GeoPoll is the world’s largest mobile survey platform, with a network of 200 million users in Africa and Asia.
According to the survey, 66 per cent of Nigerians buy items online every few months compared with 60 per cent in South Africa and 45 per cent in Kenya.
However, at least 55 per cent of Ghanaians and 51 per cent of Ugandans have never bought anything online.
The report discovered that many of those who had tried online shopping had only tried it once.
Among the top reasons cited for not frequently using online shopping sites were lack of trust, shipping costs, unsupported payment methods, or because a friend had a bad experience.
The GeoPoll revealed that many complained of unreliability of some sites, poor delivery and the purchase process. Others felt that there is no need for online purchases as the items were readily available at their local store.
The majority of shoppers in Kenya, Nigeria and Uganda paid on delivery for items bought online. However, in South Africa, 50 per cent of shoppers preferred to pay using their debit card and a further 26 per cent use their debit card for online purchases. Cash on delivery in South Africa is also the preferred mode of payment at 20 per cent compared to mobile money.
Already, eCommerce sub-Sector in Nigeria is estimated to worth $10 billion with some 300,000 online orders expected each day. The worth is projected to hit $13 billion by 2018.
Indeed, despite the economic gloom in Nigeria, eCommerce players claimed about 20 per cent growth in traffic at the just concluded ‘Black Friday’ sales.
The Black Friday, which ran between November 23 to 29, across different eCommerce platforms including Jumia, Konga, Yudala, Spar, Dealdey, Kaymu among others in Nigeria, is usually the Friday after the American Thanksgiving, and it is one of the major shopping days of the year in the United States.
Konga, through its Yakata 2016 sales, claimed to have witnessed the company’s biggest shopping period in its four year history. The online ecommerce giant revealed that it processed 155,000 orders totaling N3.5 billion within the sales period.
Konga Chief Executive Officer (CEO) Shola Adekoya, said: “Yakata 2016 has exceeded all of our expectations in terms of sales; we had been cautiously optimistic that we would improve on last year’s period, but with the Nigerian economy as it currently is, we had been conservative with our projections. However, it seems that there are hundreds of thousands of savvy shoppers keen to make their Naira go a little bit further at the moment; hence they came to Konga to find the very best deals.
Yudala also claimed to have witnessed huge traffic on the plaftrom, stressing that within the first 12 hours of its Black Friday, it recorded a sales of about N450 million.
Speaking to The Guardian, Vice President, Yudala, Prince Nnamdi Ekeh, said people took advantage of the opportunity to shop immensely.
He pointed out that some people actually shopped ahead of the Christmas period.
Ekeh pointed out that between December 2015 and November 2016, prices of electronics rose by 60 per cent and some other items because of currency issues among others, “so people just latched on the opportunity of this Black Friday to shop ahead.”
CEO Jumia Nigeria, Juliet Anammah, said Nigerians have not stopped buying but have instead, re-prioritised their shopping needs “and so retail stores are seeing more purchases in household items and children’s items rather than the regular impulse buying of clothing items.
According to a recent KPMG report, in seven sub-Saharan countries, e-commerce makes up one to three per cent of the gross domestic product, GDP, which is the total value of goods produced and services provided in a country annually. It is predicted to make up 10 per cent of total retail sales in key markets by 2025, with 40 per cent yearly growth over the next 10 years. The total retail economy is projected to grow rapidly, along with the population as a whole and its spending power per capita.
YouTube Suspends Trump Channel
YouTube Suspends Trump Channel
Google-owned YouTube on Tuesday temporarily suspended President Donald Trump’s channel and removed a video for violating its policy against inciting violence, joining other social media platforms in banning his accounts after last week’s Capitol riot.
Trump’s access to the social media platforms he has used as a megaphone during his presidency has been largely cut off since a violent mob of his supporters stormed the Capitol in Washington DC last week.
Operators say the embittered leader could use his accounts to foment more unrest in the run-up to President-elect Joe Biden’s inauguration.
“In light of concerns about the ongoing potential for violence, we removed new content uploaded to Donald J. Trump’s channel for violating our policies,” YouTube said in a statement.
The channel is now “temporarily prevented from uploading new content for a ‘minimum’ of 7 days,” the statement read.
The video-sharing platform also said it will be “indefinitely disabling comments” on Trump’s channel because of safety concerns.
Facebook last week suspended Trump’s Facebook and Instagram accounts following the violent invasion of the US Capitol, which temporarily disrupted the certification of Biden’s election victory.
In announcing the suspension last week, Facebook chief Mark Zuckerberg said Trump used the platform to incite violent and was concerned he would continue to do so.
Twitter went a step further by deleting Trump’s account, depriving him of his favorite platform. It was already marking his tweets disputing the election outcome with warnings.
The company also deleted more than 70,000 accounts linked to the bizarre QAnon conspiracy theory, which claims, without any evidence, that Trump is waging a secret war against a global cabal of satanist liberals.
Trump also was hit with suspensions by services like Snapchat and Twitch.
The president’s YouTube account has amassed 2.77 million subscribers.
The home page of the Trump channel featured a month-old video of Trump casting doubt on the voting process in November’s presidential election, and had logged some 5.8 million views.
On Tuesday, an activist group called on YouTube to join other platforms in dumping Trump’s accounts, threatening an advertising boycott campaign.
Analysts Predict 1,137% Earnings Per Share Growth for Shopify’s Full Year 2020
While the pandemic has devastated countless businesses, it has provided a major boon for eCommerce platform Shopify.
Shopify’s stock rallied by 169.9% in 2020 compared to the industry’s 26.6% growth. As of mid-December 2020, according to the research data analyzed and published by Finnish site Sijoitusrahastot, it had a 90 RS rating, which means that it had outperformed 90% of stocks during the year.
Based on the Zacks Consensus Estimate, its Q4 earnings per share (EPS) are set to jump by 188.37% to $1.24 while its sales will grow by 78% to $899.2 million. For the full year 2020, analysts project a massive 1,137% jump for the Shopify EPS.
Shopify Merchants Sell Over $5.1 Billion on Black Friday, Cyber Monday
Since Shopify went public in 2015, its stock has risen over 40-fold to more than $1,200 at the end of December 2020. Between 2016 and 2019, it skyrocketed by over 1,400%.
The eCommerce platform’s earnings for Q1 to Q3 2020 grew at an average of 552%. That was well above the 101% three-year average. In Q3 2020, its revenue nearly doubled from $390.6 million to $767.4 million.
Earnings in Q3 2020 rose from a net loss of 29 cents to $1.13 per share. Gross Merchandise Volume (GMV) soared by 109% reaching $30.9 billion, compared to 46% in Q1 2020 and 119% in Q2 2020. For the first nine months of 2020, there was a revenue increase of 82%.
For the first time, Shopify’s GMV surpassed that of eBay in Q2 2020, doing it again in Q3 2020. It claims to have a 6% share of the US market, higher than eBay’s but lower than Amazon’s 37%.
During the Black Friday Cyber Monday weekend, merchants on the Shopify platform sold goods worth $5.1 billion. Compared to 2019, this marked a 76% uptick and set a new record. Comparatively, independent businesses on Amazon sold goods worth $4.8 billion. The number of buyers on Shopify increased by 50% year-over-year (YoY) to 44 million during that weekend.
Global Digital Payments Market to Grow by 23.7% in 2020 to $4.9 Trillion
While it was already under way prior to the pandemic, the global shift to digital payments has been positively affected by the crisis.
According to the research data analyzed and published by Finnish website Sijoitusrahastot, the global digital payments market grew by 21% YoY in transaction value during H1 2020. Statista projects that the market’s total transaction value will grow by 23.7% year-over-year (YoY) in 2020 to reach $4.93 trillion. The number of users is also set to increase by 10.1% YoY to reach 3.47 billion.
Asia’s Digital Payments Market to Reach $2.88 Trillion in 2020
In the period between 2020 and 2024, the global digital payments will grow at a 13.4% compound annual growth rate (CAGR) to reach $8.17 trillion by 2024. The market’s top segment is digital commerce, estimated to grow at 4.8% YoY reach $2.93 trillion in 2020. By 2024, it is set to grow to $4.11 trillion, growing at a CAGR of 8.9%.
China will take the lead in digital payments, growing to $2.31 trillion, as well as in digital commerce, reaching $1.17 trillion in 2020. For Asia as a whole, digital payments will reach $2.88 trillion in 2020 as per a Statista report.
According to McKinsey, Asia generated $900 billion in 2019 as payment revenue, almost half the global total. Between 2018 and 2019, digital payments in Asia Pacific grew by 24.7%. Comparatively, the growth rate was 14.1% in the global market, 12.2% in Europe and 5.6% in North America.
China has a dominant role in the market, thanks to mobile payments. Based on a Finextra report, 70% of China’s consumers use mobile wallets regularly. It estimates that in 2020, 80% of global mobile wallet revenue will come from China.
Capgemini projects that in 2020, mobile payments in APAC will grow at 13.9% YoY to reach $277.5 billion. In contrast, the figure will be $229.1 billion in Europe, growing at 6.2% YoY and $184.8 billion in North America, growing at 3.0%.
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