Why are eCommerce giants like Amazon and Alibaba still missing from West Africa?

Why are Amazon and Alibaba not present in West Africa? This question, which comes up quite often in discussions on the continent, is very legitimate when we see how fast eCommerce is developing in the world and when we know the commercial potential of the region. In this article, we have identified some reasons that we believe would justify the fact that these giants of eCommerce are not yet present in West Africa. 

Generally, when we want to buy articles online, we do not necessarily know what we are looking for, and even when we know it, we are always looking for the best offer for the product we want. This search is translated into minutes or hours of internet connection. In West Africa, in addition to the telephone subscription, you must also subscribe to a mobile Internet subscription, which has a high cost. For those who still manage to have an internet connection regularly, another major problem arises — the means of payment. 

A psychological barrier still exists in many potential consumers. The development of credit card scams in the mid-2000s made people very skeptical about the use of credit cards. As a result, card payments have not yet entered the daily habits of populations. An alternative exists and is much better accepted by the community. It is the "mobile money" developed by the local mobile operators. But this payment method is not compatible with Amazon or Alibaba. Only for local eCommerce sites. 

However, not everyone is concerned with this psychological barrier. There is a category of potential buyers who can easily access the internet and are familiar with the use of credit cards. But for these, a problem remains — the problem of addressing streets and houses. In a capital like Abidjan, less than 10% of homes have a precise address, usable by postal services. Placing an order online, therefore, necessarily implies delivery in relay point. 

All these constraints will have to be taken into account before these two giants are implanted. However, the case of the Nigerian company Jumia, an African leader of eCommerce, can give an interesting example. Export Portal, a global B2B trade marketplace, is another exciting example of international eCommerce trade integration. While its offerings are comprehensive, it still has the mobility to pivot and provide support to all its users, something larger corporations cannot do as quickly. Learn more about what Export Portal has to offer and register today!