The pandemic saw a surge of e-commerce transactions as consumers shifted to safer ways to shop. Globally, sales in grocery marketplaces grew by approximately 27 times, with categories like office furniture and electronic appliances growing four times. A report by Marketing Services Agency, SCANAD, shows that the surge is likely to continue even after the pandemic eases, driven by price and convenience of the platform.
The report also shows that consumers are paying increased attention to prices and promotions due to the pandemic’s financial uncertainty. 80% of the sampled consumers in the survey by Kantar reported paying more attention to prices than before, pushing costumers to seek more value in online shopping.
The uptick in e-commerce and online shopping is evident in markets around the continent. Jumia, Africa’s largest e-commerce, recorded a YoY increase in demand of almost four times in Q1 2020 compared to Q1 2019.
Some verticals especially services, household cleaners, food & beverages have seen a significant uptake while other verticals (mostly non-essential services) like clothing and accessories, home appliances and electronics have since a significant drop in usage from consumers.
The rising e-commerce culture is not without its set of challenges. Poor road networks in the greater Sub Saharan Africa make it five times more expensive to ship goods in the region than in developed markets like the US. Similarly, low internet connectivity in the region is also slowing down the growth of online marketplaces. Currently, internet coverage in Sub-Saharan Africa is under 45%.
SCANAD predicts that the current e-commerce boom could outlive the pandemic if SMEs can deliver on trust, service, customer experience, and pricing.
You can download and read the full report here.
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