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ECOMMERCE THRIVES AGAINST A BACKGROUND OF A SOLID LOGISTICS

ECOMMERCE THRIVES AGAINST A BACKGROUND OF A SOLID LOGISTICS

The 2018 United Nations Conference on the Trade and Development (UNCTAD) Business-to-Consumer E-commerce Index ranked Kenya in 7th position in ecommerce uptake in Africa and position 85th globally. Leading the Africa pack is Mauritius, Nigeria, South Africa, Tunisia, Morocco and Ghana respectively. Globally, Netherlands took the lead having improved from a being placed 4th on the same in 2017. While Africa needs to boost Internet penetration to grow e-commerce, it also needs to get more of her existing Internet users to trust the online market for making purchases, secure servers, bank accounts, a clearly marked and mapped address system.
The UNCTAD report further estimates that that the B2C e-commerce market in Africa is worth about $ 5.7 billion in 2017, which corresponds to less than 0.5% of GDP, far below the global average of over 4%. However, the uptake of eCommerce in Africa has seen online shoppers surge at an annual rate of 18% which is way above the global rate of 12%. There is no doubt that e commerce is fast emerging as a new frontier in Africa and in the global market. As eCommerce continues to grow, retailers need to expand their distribution networks, build more fulfillment centers, and leverage more on 3PL partners. At the same time, online retailers must place greater focus on conveniently locating their fulfillment centers close to their markets to facilitate faster deliveries. (more…)