- 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.
Jeff Bezos Sets a New Record as Net Worth Hits $172bn
Jeff Bezos Breaks His Own Record, Now Worth $172bn
Jeff Bezos, the Chief Executive Officer and Founder of Amazon Inc, on Wednesday broke his own record to set a new all-time record of $172 billion net worth.
Bezos’s previous record was $167.7 billion attained in September 2018. However, the billionaire broke the record on Wednesday after Amazon shares gained 4.4 percent to close at $2,878.80 per share.
This is despite the billionaire parting with 19.7 million Amazon shares in July 2019 as part of his divorce settlement to his wife, Mackenzie Bezos.
Mackenzie Bezos’s 19.7 million shares now worth around $56.9 billion, making her the second richest woman and the thirteenth richest person in the world.
Jeff Bezos’s net worth has now risen by $57.4 billion from the year-to-date, according to Bloomberg Billionaire Index.
Opay Pauses Some Business Operations as COVID-19 Bites
OPay Halts Some Business Units Amid COVID-19 Pandemic
Opay, a seamless mobile money service provider, has announced it would be putting some of its business units on hold as COVID-19 pandemic bites.
In a statement released by the Chinese owned mobile money start-up on its official twitter page @OPay_NG, the company said “We can confirm that some of our business units including the ride-hailing services, ORide, OCar as well as our logistics service OExpress will be put on pause.”
This, it said was largely due to the tough business environment brought about by COVID-19 pandemic, the lockdown and government ban of motorbikes in Lagos.
The statement read “Globally, ride-sharing businesses have been heavily impacted by the pandemic. But several months ago, foreseeing this issue, OPay had already taken preemptive steps to restructure our business focus away from rides. It is worth to note that this final restructuring has minimal impact on OPay as a whole business.”
“It is important to clarify that ride-sharing had always been only one part, and not a major part of OPay’s diversified business in Nigeria. In fact, OPay had been investing more and seeing accelerated growth in its commitment to Nigeria’s financial and technology inclusion.
“During the pandemic, we have seen continued demand for our offline mobile money agency, and online digital payment, which remains the core of our business.
“From January to April 2020 for example, we witnessed a 44% growth of offline and online transaction value even in the midst of pandemic and lockdown. This is a testament to the high demand for flexible and easy financial services by Nigerians. OPay remains one of the most well-funded and profitable mobile money platforms in Nigeria, and we will continue to do more for our customers.”
Below is the company’s official statement as published on Twitter.
Facebook, Google Earn 80% of Annual Digital Ads Spend – Report
Facebook, Google Earn 80% of the £14bn Spent on Digital Ads in 2019
A recent report from the United Kingdom’s competition watchdog has shown that Facebook and Google earned 80 percent of all the money spent by advertisers on digital platforms in 2019.
In the 440-page report, the Competition and Markets Authority (CMA), UK said Google and Facebook market positions are having a “profound impact” on newspapers that now receive almost 40 percent of all visits to their sites through the two platforms.
“This dependency potentially squeezes their share of digital advertising revenues, undermining their ability to produce valuable content,” the watchdog said.
This is coming two weeks after Investors King called on the Federal Government of Nigeria to protect Small and Medium businesses against Facebook and Google activities or watch the nation’s SMEs die. Investors King had posited that “Nigerian startups can not compete with Facebook and the recent tax announced by the Federal Government through the ministry of finance would not be enough to stop these giant tech companies from taking advantage of Nigeria’s young growing market.”
According to the CMA report, out of the £14 billion spent on digital advertising in the United Kingdom in 2019, Google with more than 90 percent share of market search earned £7.3 billon while Facebook with more than 50 percent of display market earned £5.5 billion. Representing 80 percent of the total digital ads spent in 2019.
While the report admits that the two platforms help small businesses reach customers and are valued by users, it also said they have “developed such unassailable market positions that rivals can no longer compete on equal terms”.
Andrea Coscelli, Chief Executive at CMA, said: “What we have found is concerning – if the market power of these firms goes unchecked, people and businesses will lose out.
“People will carry on handing over more of their personal data than necessary, a lack of competition could mean higher prices for goods and services bought online and we could all miss out on the benefits of the next innovative digital platform.
“Our clear recommendation to government is that a new pro-competitive regulatory regime be established to address the concerns we have identified and regulate a sector which is central to all our lives.”
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