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Guest Blog: Ecommerce, the new way of Ghanaian shopping

Follow @eventlabgh < Some few years ago, most Ghanaians shopped in their local brick and mortar stores which were inundated...




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Some few years ago, most Ghanaians shopped in their local brick and mortar stores which were inundated with parking and weather problems, long queues, and wobbly shopping carts/trollies, shops collapsing etc. Even when online shopping started catching on with some segment of the Ghanaian populace, people felt uncomfortable using their credit cards and giving their personal information to cyber-shops. That has all changed.

Throughout the world, online buying has grown exponentially. The money Ghanaians spend online is projected to increase significantly within the next five years. Consumers may still be concerned about the security of online shopping, but more and more of them are prepared to buy on the web. It is notable to mention that some online shops to protect consumers have gone the extra mile to verify Ad posters (Ad posters have to provide Voters ID, Passport, Driver’s License numbers or pins) before their Ads are approved or listed online. Others like KudiShops verify their Associate or Dealers by checking through a set of requirements, i.e, company must be VAT registered (Provide Snap Short of certificate for verification), must have warranty on all products (minimum of six months) with after-sales-services and enlist only products available with constant supply.

Some few years ago, most B&M stores had it written in some obscure corner of their shops “goods ones bought are not returnable”. The consumer therefore was left to his fate if he walked away from the store without checking for expiry date, size, etc. Quite recently, there was a post on social media which read, “thank you for visiting our store, however, please note that you enter the store at your own risk. The owners do not accept any responsibility for any harm you may suffer in this store, even if it is caused by the negligence of the owner or its employees, so please be careful”. This was the inhumane experiences consumers endured.

Online shops on the other hand are offering par excellent customer service with easier return policies and in some cases very attractive discounts on returned goods, faster and free delivery within selected areas. What is more exciting is that consumers can shop at the comfort of their homes or anywhere they find themselves by means of their mobile handset, tablet, etc. Most online shoppers enjoy lots of discounted deals on a wide range of products and services. Analysts indicate that a lack of convenient and reliable electronic payment services or platforms for online shoppers is a major problem confronted by Ghanaians who shop online. This notwithstanding, online shopping is gradually increasing by the day. The steady growth of online shopping has also been characterized by strong consumer demands and the increasing number and type of goods available. The proliferation of mobile phones and availability of faster internet networks cannot be over looked.

Most businesses are now operating the Omni channel model by hosting a virtual store while they push for sales also through their physical (stores). On average, retailers that have both a physical (store) and online presence have reported an average of 23% growth. Online only retailers however have seen only 9% yearly growth. Online shoppers are beginning to think that the best deals are available online and that they get better prices there.

A growing generation of young, internet-savvy Ghanaian individuals has embraced new, online technology. Ghana has an estimated population of 27.72 million people (World Bank) of which 5.24 million are active internet users.

In South Africa, 51% of individuals with internet access shop online. In Kenya, 18-24% make online purchases. In Nigeria approximately 28% of the population has internet access according to ITU figures. Per the figures mentioned, one can comfortably say that the above mentioned countries has taken the lead on shopping online. Ghana however is gradually edging up, competition is on the rise as market players realize consumer patterns are shifting online.

Apparel, computers and consumer electronics will continue to be dominant purchases; these three areas make up 40% of the current online sales which won’t change in the near future.

The internet is only going to become more popular as time goes by and online shoppers in Ghana become more comfortable about the security and on-time delivery of their purchases. This is the one area of merchandising that continues to have a positive outlook far into the future. A shining example of such a module which is making waves in the ecommerce industry in Ghana is KudiShops. Despite its almost one year existence, it is making waves that in the not too distant future one is likely to see them at the top of the industry.

By: Joshua Mensah-keli



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