2019 Marketplace Expansion Index

The ecommerce and sharing economies are booming. Thousands of fast-growth marketplaces are emerging all around the world.
This index examines the top 36 countries for ecommerce and sharing economy platforms to expand.

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Nigeria

2019 Rank # | 2018 Rank #

Big Mover

New

evolving

Nigeria

The newest entrant to the expansion index has large, high-growth ecommerce industry but is hindered by an economy heavily reliant on cash and poor logistical infrastructure.

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Biggest Movers

#27

Marketplace Expansion Index Rank

New Entry

Pros

  • Huge addressable opportunity with 100+ million internet subscribers
  • Limited competition, mostly local companies
  • High availability of freelance employment

Cons

  • Very high cost of doing business, difficult to run profitable ecommerce business
  • Very nascent digital payment infrastructure
  • Security remains a concern in many regions

Facts You Can't Forget

1

Mobile-first market. Nigeria’s mobile market is Africa’s biggest with about 162 million subscribers (84 percent of population).

2

Cash is King. 70 percent of Nigerians preferred the cash on delivery option, compared to 28 percent for credit/debit cards and 12 percent for mobile money options. However, due to security issues and high cost, some ecommerce companies are trying to push customers to digital payment methods.

3

Black Friday. This North American shopping tradition has been imported by Nigerian ecommerce sites, and is typically the largest online sales day of the year. Jumia saw more than 100 million site visits during Black Friday 2017 sales event.

Ranking Highlights

For our full explanation, visit our methodology page

Infrastructure

5

The fundamentals of any society and enterprise, including: payment infrastructure, ease of doing business, and Logistics Performance Index.

Workforce

10

You’re only as good as your people. Factors in this category include: levels of English proficiency and participation in freelance employment.

Ecommerce Activity

7

This category assessed ecommerce opportunity size, retail ecommerce growth and ecommerce as a percentage of retail transactions.

Competition

5

The fate of foreign entrants, based on the volume of cross-border transactions and if a global marketplace dominates that geography.

Essential Reading

""We believe that, by end of 2018, at least every Nigerian will have access to a mobile phone," added Anammah, Chief executive officer, Jumia Nigeria, Juliet Anammah."

"We are already seeing huge breakthroughs in digital banking and the adoption of fintech-based services by Nigerian consumers — be they retail or business customers."

"The Global Industry Vision (GIV) 2025 report revealed that the number of personal smart devices will reach 40 billion and the total number of connections around the world will reach 100 billion, creating a digital economy worth of $23 trillion."