The e-commerce industry is one of the sectors the federal government (FG) is looking to explore for economic improvement. It is predicted that it will generate $75 billion in revenues per annum by 2025, and the future is looking good for the nation.
In 2020, ecommerceDB, a database by Statista, reported Nigeria is the 35th largest market for eCommerce globally. A year later (2021), the ranking improved to 33rd globally.
Recently, while re-assuring citizens that FG is working to establish a strategy on e-commerce that will boost the growth of the sector, the Minister of Industry, Trade and Investment, Niyi Adebayo, stated; “the number of online shoppers in the country, which was at $76.7 million in 2021, is expected to hit $122.5 million by 2025.”
With the unemployment rate at 33.3 percent and the population at over 200 million, “e-commerce provides an alternative to sustain businesses and preserve millions of jobs,” according to the Ministry of Industry, Trade and Investment.
For the nation to achieve the projected estimate, cogent challenges faced in the industry will need to be addressed. These challenges include trust issues, logistics, listing difficulties, and customer services.
Many Nigerians are discouraged from buying things online because of some dishonest sellers who will post a product and deliver something else.
This is why the Nigerian social media space is usually bombarded with the case of What I Ordered Vs. What I Got.
To overcome this major problem, Barry Okojie, a Nigerian-born Canadian, started an online marketplace called Jaraa. The name comes from the word “Jara,” which in the Yoruba language means a complimentary or extra gift to purchase.
Jaraa was founded in January 2020 but the official website was not launched until 12 months later, in January 2021. The digital platform offers an all-in-one service with options to sell pretty much everything without any posting cost.
The concept behind Jaraa is to offer everything on one platform. Unlike most e-commerce places, people are able to post an ad for anything they want to sell, including electronics, furniture, real estate, professional services and even offer jobs.
Jaraa will perhaps erase the need to visit multiple sites in Nigeria and become the leading online marketplace in the upcoming decade. The key point of using Jaraa is that it doesn’t charge anything and promotes local businesses. Small businesses or startups can quickly start selling without worrying about spending on the listing.
Logistics is also a major concern for the operators of e-commerce platforms and buyers. Due to the poor road network and increase in fuel prices, the delivery cost in some areas is usually expensive, sometimes higher than the cost of the item ordered. So customers are generally looking for deals available nearby to save on the extra cost.
Though it might be a difficult journey as there are lots of obstacles to survive in this industry, Barry Okojie believes that Jaraa will succeed and bring a change to the Nigerian e-commerce industry.
and then