Chapter 1 Online Shopping
Chapter 1 Online Shopping
Chapter 1 Online Shopping
INTRODUCTION
Online shopping is the process of buying goods and services from
merchants who sell on the Internet and people can purchase just about
anything from companies that provide their products online. Online
shopping is a form of Electronic Commerce . E-commerce or Electronic
commerce, is a subset of E-Business (a company that does all or most of
its transactions through the Internet), is the purchasing, selling, and
exchanging of goods and services over computer networks (such as the
Internet) through which transactions or terms of sale are performed
electronically.
These business transactions occur either as business-to-business (B2B),
businessto-consumer (B2C), consumer-to-consumer (C2C) or consumer-
to-business (C2B). The terms e-commerce and e-business are often used
interchangeably. The term ETail (electronic retailing) is also sometimes
used in reference to transactional processes for E-Shopping or Online
Shopping.
Online Shopping is the browsing and purchase of goods using
computer (Internet) also called Home Shopping.
This chapter consists of four sections: section one, explores background
of the project. section two , project objectives were listed. Section three,
the scope of the project . section four, significant of the project were
viewed.
Background of the project
In the last decade, online shopping has experienced an explosive growth
due to the fact that it represents a more economic and convenient
approach to purchasing in comparison to traditional shopping.
In the twenty-first century, trade and commerce have been so diversified
that multichannel has taken place and online shopping has increased
significantly throughout the world (Johnson, Gustafsson, Andreassen,
Lervik, & Cha, 2001). Globally, e-commerce constituted about 2.29
trillion dollar market (John, 2018) and expected to reach 4 trillion dollar
by 2020 (eMarketer, 2016) due to the double-digit worldwide growth in
sales (15%) and order (13%) (eMarketer, 2018) in all sorts of e-
commerce such as business-to-business (B2B), business-to-consumer
(B2C) (Zuroni & Goh, 2012).
The last two years got off to a good start. For many, 2019 was the year
in which online retail would finally make its big breakthrough in Africa.
In April, the e-commerce platform Jumia went public on the New York
Stock Exchange. Founded in Nigeria, the company specializes in online
retail, operating in more than ten African countries.
And the African market offers great potential. "If you compare with
Europe for instance: There typically 60% to 80% of the population will
buy things online," the head of the Department of E-Commerce and
Digital Economy at the United Nations Conference on Trade and
Development (UNCTAD), Torbjörn Fredriksson, told DW. "But in
Africa, with very few exceptions, less than 5% of the population is
currently buying things online."
In the early 2010s, African tech ecosystems were defined by the promise
of e-commerce with a simple mission; getting hundreds of millions of
young Africans to make purchases.
Adecade on, the mission still remains a work in progress with question
marks lingering around logistics and last mile delivery problems- and
that’s reflected in the level of spending among African shopping.
(QUARTZ AFRICA, 2020).
Statistics portal Statista reported that the total value of e-commerce in
Africa reached $16.5 billion in 2017 and is expected to reach $29 billion
by 2022. Although e-commerce is spreading steadily in Sub-Saharan
Africa, three economies continue to dominate the e-commerce
landscape.( theasianbanker, 2021).
According to the UNCTAD E-commerce Index Report 2018, Nigeria,
South Africa and Kenya account for more than half of the online
shoppers in Africa in 2017. Nigeria is Africa’s largest business to
consumer e-commerce market in terms of both number of shoppers and
revenue.
On African continent, owing to poverty, cultural obstacles, lack of
addresses and well-marked roads, security problems, poor internet
infrastructure, low literacy levels and insufficiency of regulative
framework, poor banking facilities and among others, the process of
adopting this recent technology of online shopping is slow amid
customers (Abiodun, and Suraju, 2013).
E-commerce in Somalia is nascent, and across Africa generally, online
shopping remains niche, says Matthew Reed, a consultant at research
firm Ovum.
"Many people are still living on desperately low incomes, so e-
commerce is really just for the middle classes. And there are other big
challenges for e-commerce firms, not just in Somalia," he says(BBC,
2017).