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Ecommerce in Africa to hit $75 billion by 2025

Walmart’s literally flying with its Wing drone delivery to its app! Guess the sky’s not yet the limit for ecommerce innovation. 🪂

But that’s not the biggest news we have for you today. We have some scoops that span another continent and multiple generations that might convince you to revise your selling strategy. 

ECOMMERCE NEWS

According to Deutsche Welle, Africa's e-commerce is predicted to hit $75 billion by 2025. By then, it could make up 10% of retail sales in the continent’s largest economies—Nigeria, South Africa, and Egypt. No wonder big names like Amazon are eyeing to enter. 👀

But how can Africa unlock its full potential?

🧱 Growth hurdles

The boom in Internet usage in Africa, especially in Nigeria, is to blame. In 2022, there are about 570 million Internet users, more than double the number in 2015. Plus, platforms like Instagram make it easy to reach customers directly.

Despite this growth, there are hurdles that the online shopping industry faces, such as:

  • Scams: A Nigerian shopper shared that receiving a different item from what you ordered is prevalent. 
  • Customer service. Another shopper pointed out that once vendors get your money, some usually don't care as much about customer service.
  • Culture. Experts say outsiders may have difficulty aligning their offerings with Africa’s cultural preferences. This might be the reason why Africa’s big ecommerce players are local.

🪖 Amazon’s brave debut

Africa boasts some local heavyweights. Jumia leads the pack with 23 million monthly visits, closely followed by Takealot.com with 10 million visits. Other notable players include Souq.com (now under Amazon's ownership), and fashion retailer Shein.

In May, Amazon made its entrance into the market. While some are concerned about the competition, local business owners like Paula Maseko remain optimistic. "Amazon may have more resources and offer lower prices, but we'll adapt and thrive," she says.

The main question for sellers: Should you be tailoring your offering to African consumers as early as now? 🪡

TOGETHER WITH INSENSE

FREE Template: How to brief for viral TikTok Shop campaigns

The #1 TikTok pain point for Amazon sellers is effectively briefing TikTok Shop affiliates to produce high-quality videos that drive sales. Insense, an official TikTok Shop Partner, can help with that.

Insense and its team of TikTok Shop experts will help…

  • Produce effective creative briefs for flawless content delivery
  • Match you with vetted creators FAST within 2 days 
  • Deliver killer shoppable videos in 10 days or less

And they’ve published a FREE Creative Brief Template!

You can use the free template to:

  • Accelerate your TikTok Shop video content creation
  • Receive flawless content deliverables the first time
  • Effectively explain your brand and product for high-impact shoppable TikTok videos

Download your FREE Template

BITES OF THE WEEK

SOCIAL PULSE

Social commerce isn’t just about Gen Zs

Gen Zs are currently the largest, most diverse, and most influential generation globally.

Aside from being dubbed the” TikTok generation,” they’re starting to come to their purchasing power era—contributing $360 billion in the U.S. alone!

However, an article by Total Retail reminds retailers that social commerce isn’t just about this trendsetter generation.

🔤 There’s M and X before Z

Gen Z is indeed leading in social commerce trends.

  • 88% of Gen Zs use social media to discover new products.
  • 22% of Gen Zs make purchases directly through social commerce channels.
  • 44.7% of TikTok users are Gen Zs, making them a prime target for social commerce campaigns.

Winning them over is important—but isn’t everything. You’d have to extend the same level of effort to other generations because:

  • 92% of Gen Xers use social media daily, yet only 5% of influencer marketing spend targets them.
  • Millennials have a total retail spending of $1.928 trillionover a 12-month period.  
  • Millennials and Gen X also actively use social media for product discovery and purchasing.

📌 Inclusive strategies are a must

We’re not saying to leave Gen Zs alone.

We’re saying your carefully curated content and awesome ads can also win over millennials and Gen Xers!

Hence, you must be inclusive when you create your Interactive videos, live streams, and shoppable ads. This way, you can truly maximize your brand exposure and earning potential.

ACTIONABLE ADVICE

How to maximize your social commerce potential

Shopping isn't just about browsing through online stores anymore. It's happening right where people spend much of their time—social media platforms. As sellers, this social commerce wave is an opportunity you don’t want to miss.

💡 Fast Company shared some tips to help you thrive in this changing landscape:

  • Use platform features. Use tools like digital storefronts and product tags on social media platforms so customers can buy your products from their feeds.
  • Connect with your audience authentically. Share user-generated content and partner with influencers to build trust and loyalty.
  • Pay attention to the data. Analyze data from social media platforms to understand what your customers want and how they shop.
  • Make shopping easy. Make sure your customers can easily find and buy your products with secure and seamless checkout processes.
  • Stay updated with the latest trends in social commerce. Technology is always changing, so be ready to adapt to new tools and techniques.

🛍️ Turn social media browsing into buying

Social commerce isn’t going away anytime soon, and it’s a great way to reach more customers than ever before. So, embracing it is a smart way to stay ahead of your competitors.

Author : SellerBites
Faith began working on SellerBites in 2021, a weekly newsletter that provides sellers with the latest news and updates in FBA. With first-hand experience in managing various seller and vendor accounts, she understands what sellers face on this platform. Her background led to the conception of SellerBites, which main goal is to help people become better, more informed entrepreneurs in the Amazon marketplace.
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