By Martin Ekpeke
Africa’s B2B e-commerce landscape is set to thrive based on the prediction that by 2030, more than 75 percent of the workforce in Africa will be made up of millennials, who are digital-minded and grew up with e-commerce as their go-to channel for purchases.
Thus, players in the e-commerce ecosystem have been advised to anticipate and begin to make investments in that regard.
Giving this advice at the official launch of Zandaux, a B2B e-commerce platform in Lagos earlier this week, Mr. Gabriel Idahosa, President / Chairman of Council of LCCI of the Lagos Chamber of Commerce and Industry (LCCI) posited that B2B commerce is undergoing profound transformations.
“Traditional sales models are rapidly declining and most B2B sales interactions between suppliers and buyers are shifting to digital platforms. In the coming decade, no goods or services will be sold without a digital shop, buy, or self-service option. Businesses will be required to undergo unprecedented levels of digital transformation to radically change how they attract and retain customers, market their products, operate within supply chains, and provide services,” he said.
In Asia and America, almost 70 percent of all B2B sales are made through e-commerce while Europe is very much lower at about 20 percent, Africa currently is nowhere near this level. Thus, the continent has a lot of catching up to do.
Africa as an economy has long been a reservoir of untapped economic potential, and the time has come for us to harness the power of B2B e-commerce to unlock new opportunities.
Thanks to Zandaux, which recently launched its platform in Kenya and now Lagos-Nigeria along with similar platforms. These platforms have the potential to create value by streamlining and expediting cross-border trade, eliminating inefficiencies, reducing costs and facilitating seamless transactions, which are core mandates of the African Continental Free Trade Agreement (AFCFTA) and will in turn, catalyze economic growth, foster innovation, and empower businesses across the continent.
The potential impact of platforms like Zandaux on B2B e-commerce in Africa is enormous. Though many online purchasing processes in Africa are still disorganised, B2B and B2C have high expectations for e-commerce on the continent. According to iO, a European consulting firm, “Half of all B2B e-commerce platforms fail to buyer expectations in Africa. Even more alarming, 94% of B2B buyers encounter customer experience problems online.
Some of these challenges include unclear navigation, problems with checkout or a platform that is not optimised for mobile use. Many organisations do not yet see B2B e-commerce as the primary channel. All these must be tackled. It requires a completely different approach and a shift in the organization, not only in terms of technology but also in terms of teamwork and the use of marketing and communication.