How e-Commerce Supports the Growth of African Business

Guides and Tips
February 12, 2021
How e-Commerce Supports the Growth of African Business

It is already common knowledge that anyone can operate any business of their choice, using the internet to reach their customers and to meet their buying needs. There is no longer a need for a brick and mortar store. In this short article, you will see how e-commerce is supporting business growth in Africa.

E-commerce (the buying and selling of goods and services over the internet) has helped both small and large businesses to reach new customers. In Africa, e-commerce is growing in popularity with customers and business in leaps and bounds, thanks to the emergence of online payment innovations and increased internet accessibility. 

Some of the ways in which e-commerce is enabling both small and large businesses to grow include:

  1. Accessibility.

E-commerce removes distance barriers and makes businesses more accessible to as many customers as possible. Customers in rural areas have access to retail businesses in the big cities, as long as they have access to the internet. This has given both small and large businesses access to markets that they could not reach before. Customers can easily order products that were previously difficult to buy.

  1. Expanded global reach.

E-commerce increases a business's global reach. Businesses can reach markets in Africa and other continents without the need for a physical presence. This will increase brand awareness and also allow more customers to find the business.

  1. E-commerce provides a cheaper way to do business.

Retail businesses benefit from lower overhead costs with e-commerce, allowing for better profit margins, and the ability to re-invest in the business for growth. They can avoid the high cost of rent and need fewer employees by conducting business online.

  1. E-commerce opens up cheaper advertising channels for a retail business.

Digital advertising can be cheaper than traditional advertising channels. A small business can carry out a highly effective marketing campaign on the internet on a smaller budget, especially via social media marketing channels like Facebook, Instagram, etc. Google advertising can also play a role, as many online shoppers search on Google before making buying decisions.

Aside from being cheaper, digital advertising like email marketing can be made more personal, in order to connect with customers. This in turn can lead to more sales.

Despite its rapid growth over the years, and the innumerable ways e-commerce is supporting business growth in Africa, it still has drawbacks. For example, the inability to make payments due to local limits, online security challenges, customer distrust of e-commerce, a high cost of internet bandwidth and inefficient delivery systems may hinder e-commerce from realizing its full potential in Africa.

However, Klasha is solving some of these problems. We have learned a lot about consumers’ pain points over the past few years, and we are committed to solving these unique challenges. Our solution allows merchants worldwide to sell online to Africa while allowing customers to pay in local African currencies and benefit from quick order shipment to the continent. We remain committed to simplifying borderless payments for commerce in Africa. 

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