Explore the benefits of e-commerce in Africa, including the wider audience, increased revenue, 24/7 availability, cost savings, and global market access. Embrace good software development as the foundation for propelling your business.
Gone are the days of only brick-and-mortar businesses with no systems or operations being run online by automated software models like they are today. Nowadays, it is an anomaly if a business doesn’t have an online presence. In fact, many stores start out as e-commerce stores first then branch out into physical stores. While others remain solely online.
In Africa, the revenue generated in the e-commerce market was just under $34 billion in 2022 with forecasts predicting that the number will increase to $41 billion in 2023. By 2027, it's forecasted to generate revenue of around $68 billion. On the continent, the biggest contributors in the region are South Africa, Nigeria, and Kenya.
With the pandemic further driving more people towards e-commerce, a business that didn’t yet have an online presence raced to get onboarded to serve the masses they were missing out on. Further confirming the benefits associated with having an online store. Discussed below are the reasons why businesses should consider moving online.
An online business allows you to expand your reach through an online presence, catering to consumers far beyond geographical boundaries. The Internet permits businesses to sell their products and services in new markets globally, opening up new opportunities for potential growth.
Leveraging the internet to make sales means consumers from all over the world in different time zones can order and purchase your products. Combined with the fact that an online store isn’t limited by operating hours like its physical counterpart, more business can be done around the clock. This accessibility and convenience to a wider audience in more markets lead to more sales over time.
Rent, maintenance e.g. utilities for the store building as well as staffing are expenses that online stores can save on compared to physical stores. Making e-commerce stores cost-effective as more processes and operations are streamlined due to software and made more efficient, reducing the need for warehousing costs.
On top of lower costs related to warehousing, rent, and labour costs, marketing is another expense that online stores save. Traditional marketing methods such as billboards and other physical advertising methods have been shown to become less effective and outdated. Since more of our time is spent on our devices, that’s where most of the attention comes from. This means digital marketing tools such as social media marketing, email marketing, and search engine optimisation are more cost-effective in reacher potential customers at a lower cost.
With online platforms, data and insights about customer behaviours, patterns, and preferences are valuable in understanding and gaining new insights about customer needs. This information can also be used to optimise marketing campaigns e.g. targeting strategies and improve the overall customer experience.
Due to the nature of online businesses, these platforms are able to integrate with multiple tools and software, be it inventory management systems, customer relationship management (CRM), payment gateways, or customer support systems. Such integrations streamline business operations and allow automation which saves time and resources. Software development and web development processes are crucial to ensuring this.
E-commerce businesses offer convenience and flexibility that physical stores cannot compete with. Customers can browse products and services, compare and review prices, and finally make purchases all within their homes. The product or service is then delivered to their preferred destination. Lastly, personalised recommendations and frictionless checkout processes make for an overall effortless customer experience.
As previously mentioned, not having an online version of your business is like giving your market share to your competitors. Relying solely on your restricted geographical location can not only harm your business’ growth potential but even reduce your growth altogether. Without the reach that the internet provides, you’re no longer able to provide to new customers. And without the added features that come with online businesses, current customer retention might be difficult to hold onto.
With an online business, you have the same resources and information at your disposal as other businesses. Physical stores cannot compete with the benefits that the Internet provides. As the continent becomes more digitised and industrialised, it’s only a matter of time before others notice that their businesses should be too if they want to stay competitive.
