Overview of E-commerce in Africa
The B2B market in South Africa is one of the most interesting in the world. In this article you will find out how you can export to Africa, enter African markets like South Africa, and realise opportunities without risk. A local B2B e-commerce platform provides a viable solution to test and sell your products on the African continent.
The global COVID-19 health crisis accelerated e-commerce growth on the African continent. Online shopping spurred and the availability of local E-commerce platforms in the B2C but also in the B2B space increased significantly.
The e-commerce sector is growing rapidly in Africa at an average of 17.19%, compared to the average global e-commerce growth of 6.3%. At the beginning of 2020, the African e-commerce market was worth USD 27 billion, and it is estimated that this will grow to USD 75 billion by 2025. In South Africa, the e-commerce market is expected to reach US$4.6 billion in 2021. Revenue is expected to grow at 8.16% annually. In Nigeria, e-commerce market is expected to reach USD 6.13 billion in 2021.
Revenue is expected to grow at 11.62% annually, and in Kenya, the e-commerce market is forecast to reach US$1.51 billion in 2021 - Revenue is expected to grow at 11.78% annually.
How can a Swiss exporter reap these opportunities at low risk?
Many believe B2B is the key to unlocking Africa’s full e-commerce potential. A local B2B e-commerce platform provides a viable solution to test and sell your products on the African market. The Swiss Business Hub Southern Africa, in cooperation with the strategic partner Enterprise Africa realises an initiative with a B2B e-commerce platform with focus on high-quality products from the DACH-region. Swiss SMEs can test the market and evaluate their offering and market potential in South Africa and other African business hubs, such as Kenya and Nigeria, at low cost and risk, without having to travel, commit to an agent/distributor or set up a local business in Africa.
The e-commerce platform enables Swiss SMEs to sell their products to B2B buyers in Africa, offers secure business transactions, flexible logistics and warehousing solutions as well as specialised support in all major business hubs in Africa.
Through the e-commerce Platform, sellers can gain first-hand market insights and valuable feedback from industry experts, end-users and retailers on their products in the South African market A very upfront way to sell directly without a costly set-up and dealing with local context.
Through a local warehousing option, sellers can achieve buyers’ needs of a quick turnaround. Products can be stored locally and distributed with the help of our network of local logistics partners.
A successful marketing strategy is crucial to succeed in the African markets. In addition to selling products on the platform, you will receive local marketing support to ensure that products are actively promoted in their target industries and can be easily discovered by B2B buyers. Online marketing Search Engine Optimization (SEO): Search Engine Advertising and/or Social Media marketing, depending on the specific product market will give your products a boost in brand awareness and local exposure to B2B buyers and assist with converting interest into purchase of your products.
How does the on boarding process work?
To list your products on the Enterprise Africa E-commerce platform, we will need information regarding the products you wish to sell, the industry sector, targeted countries, high-resolution images of the products, a product description, information for shipping purposes and whether to proceed using the local warehousing option or sending products via drop shipping. When products are sold via the platform, Enterprise Africa will forward the payment to the seller, keeping only the agreed-upon commission, before the shipment will initiated. This process allows for maximum control.
If you are interested in becoming a seller, please send an email to firstname.lastname@example.org. We will happily set up a personal introductory meeting via Video call, in which we will discuss the goals of your business venture into Africa to ensure that we can provide you with a solution that is customised to your needs.