The rapid growth of e-commerce in Nigeria has brought numerous benefits. However, the change towards online shopping is undermining various aspects of the local economy, impacting market traders, small businesses and the overall trade landscape. In this report,examines how e-commerce is affecting trade business and the broader implication for Nigeria’s economy.
However, the rise of e-commerce is causing mixed feelings among local business owners and market women as local business owners and traders are finding it difficult to compete with the pricing, reach and convenience offered by e-commerce platforms. Local small businesses often lack resources to compete with established e-commerce giants. The digital divide exacerbates this issue, as many businesses cannot invest in online platforms, limiting their ability to attract and retain customers who are increasingly shopping online. They argue that this change could lead to job losses in local retail sectors, with market traders, and other roles tied to physical retail spaces are at risk as sales decline.
“We don’t have the same reach or technological expertise as big online stores. They can offer lower prices and home delivery, which we struggle to match. It’s putting us at a significant disadvantage. We rely on walk-in customers, and with more people shopping online, our sales have dropped significantly,” Okafor said.
Sharing her experience about online scams, an online consumer, Titilope Adeniji, said, “I shop online frequently because it’s convenient and saves time, but I have had some negative experiences with fraud and poor-quality products, there have been instances where the items delivered did not match the descriptions or images online, and getting refunds or exchanges was a hassle. I have encountered fraudulent sellers who took my money and never delivered the goods.
However, e-commerce still faces several obstacles. The regulatory environment for e-commerce in Nigeria is still evolving with inconsistent regulations and a lack of comprehensive policies creating a condition where local businesses face stricter regulations compared to their online counterparts. Olaoluwa said e-commerce operates as a complementary layer to local markets, relying on the products and services they offer.
He pointed out that tools such as Sharesell, Bumpa and Selar can help local markets connect with buyers more efficiently.