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With these developments, Mckinsey\u2019s Global forecast that Africans could be buying $75 billion worth of goods and services online by 2025.<\/p>\n
”Interestingly, Nigeria, the continent\u2019s largest consumer market, revenue has doubled each year since 2010.\u00a0Five years ago, Internet penetration in Africa was just was about one-third of the world average and in 2016, it improved to 28.6 percent, which is just 61 percent of the global average. This clearly indicates that the retailers no longer have the fear that they have been selling the products to people who aren\u2019t online”, as quoted by LogUpdate Africa.<\/p>\n
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Eyeing potential in Africa\u2019s e-commerce market<\/strong><\/h3>\nExperts say that there remains a lot of positivity for Africa’s ecommerce market. Speaking at the opening panel session,\u00a0IATA’s Global Head of Cargo, Glyn Hughes estimated that by 2050, \u00a0the continent\u2019s population could reach 2 billion people, representing 20 percent of the world\u2019s population, while it was also the world\u2019s youngest [population median age] continent and would remain so. \u201cThis means there is an increased labour force potential and huge potential consumer market,\u201d he said.<\/p>\n
He added, \u201cWith regards to the internet connection, 28 percent of the continent is actually connected to the avid use of internet versus 54 percent of global average. Leading the ways are Nigeria, Kenya, South Africa in terms of connectivity.\u201d<\/p>\n
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Room for improvement<\/strong><\/h3>\nOne of the major areas for improvement identified by Atlas Air Vice President, Sales and Marketing, Graham Perkins was in customs rules and regulations, which he said in some countries \u201cdated back decades\u201d.<\/p>\n
”In some places 100 percent of shipments required inspection by customs, while in others transit cargo could not process through customs, which meant it would be impossible to set up a regional hub in that country. Wealthy Africans also worry about being scammed, which prevents them from buying high-value items and putting their financial details online. On the other hand, Cash on Delivery (COD) poses to be a problem for sellers: theft, the cost of returns, which wipe out losses from successful sales, couriers returning cash late, etc.”, he stated.<\/p>\n
”One of the emerging solutions is mobile-based e-commerce third party payments.There exists a huge opportunity for startups which can act as a trusted third party between buyer and seller to handle money”, he continued.<\/p>\n
Those who are in the e-tailer business would look at the fast and on time delivery of the products to the end customer. Since the Logistics infrastructure is not adequate in the African countries, e-commerce sector is yet to reach where it should be. The last mile delivery boys on bikes ride on the poor road infrastructure to ensure timely delivery of the product.<\/p>\n
Perkins suggested the need for African countries to create a free trade zone as this could benefit e-commerce retailers and air cargo businesses investing in regional hubs.<\/p>\n
New wave of technology: How Logistics can drive E-commerce<\/strong>
\nSince Africa\u2019s complex Logistics requirement encompasses multiple logistics vendors to move goods from one region to another, what happens is that the data get processed in different levels and resulting in transparency issues between service providers and customers. Technology can bring multiple vendors together to a single platform where they can exchange data and work in a synchronised manner. E.g: Shipment is booked from Nairobi by Company A, Moved to Mombasa through a Bus Fleet company B. Delivered locally in Mombasa by bikers associated with Company C, and all of them are hooked to each other so if customers track the package on a website they will be able to get full information.<\/p>\nIt is an unarguable fact that the operations of e-commerce companies such as Jumia, Konga, Carmudi, Easy Taxi, Everjobs, Jovago, Kaymu, Lamudi, Vendito and Zando across 23 African countries has greatly helped to facilitate the e-commerce boom in the continent.<\/p>\n
With regards to the E-commerce boom in Africa, Perkins pointed out, ”I would say that Africans are ready to take [e-commerce] on, the question is, is Africa itself willing to take it on?\u201d.<\/p>\n
One of the major areas for improvement identified by Atlas Air Vice President, Sales and Marketing, Graham Perkins was in customs rules and regulations, which he said in some countries \u201cdated back decades\u201d.<\/p>\n
”In some places 100 percent of shipments required inspection by customs, while in others transit cargo could not process through customs, which meant it would be impossible to set up a regional hub in that country. Wealthy Africans also worry about being scammed, which prevents them from buying high-value items and putting their financial details online. On the other hand, Cash on Delivery (COD) poses to be a problem for sellers: theft, the cost of returns, which wipe out losses from successful sales, couriers returning cash late, etc.”, he stated.<\/p>\n
”One of the emerging solutions is mobile-based e-commerce third party payments.There exists a huge opportunity for startups which can act as a trusted third party between buyer and seller to handle money”, he continued.<\/p>\n
Those who are in the e-tailer business would look at the fast and on time delivery of the products to the end customer. Since the Logistics infrastructure is not adequate in the African countries, e-commerce sector is yet to reach where it should be. The last mile delivery boys on bikes ride on the poor road infrastructure to ensure timely delivery of the product.<\/p>\n
Perkins suggested the need for African countries to create a free trade zone as this could benefit e-commerce retailers and air cargo businesses investing in regional hubs.<\/p>\n
New wave of technology: How Logistics can drive E-commerce<\/strong> It is an unarguable fact that the operations of e-commerce companies such as Jumia, Konga, Carmudi, Easy Taxi, Everjobs, Jovago, Kaymu, Lamudi, Vendito and Zando across 23 African countries has greatly helped to facilitate the e-commerce boom in the continent.<\/p>\n With regards to the E-commerce boom in Africa, Perkins pointed out, ”I would say that Africans are ready to take [e-commerce] on, the question is, is Africa itself willing to take it on?\u201d.<\/p>\n
\nSince Africa\u2019s complex Logistics requirement encompasses multiple logistics vendors to move goods from one region to another, what happens is that the data get processed in different levels and resulting in transparency issues between service providers and customers. Technology can bring multiple vendors together to a single platform where they can exchange data and work in a synchronised manner. E.g: Shipment is booked from Nairobi by Company A, Moved to Mombasa through a Bus Fleet company B. Delivered locally in Mombasa by bikers associated with Company C, and all of them are hooked to each other so if customers track the package on a website they will be able to get full information.<\/p>\n