Amazon is coming to Nigeria with its $4.9 trillion strength and it could mean a complete overhaul of e-commerce in Africa’s largest economy to push Konga and Jumia to the edge.
Amazon’s Nigerian entry, scheduled for second quarter of 2023, is part of its expansion drive into five new countries in Europe, Africa and Latin America.
Nigeria and South Africa take the spot for its African drive with the e-commerce giant hoping to rework the market-space with lower prices and deeper grassroots presence for millions of customers.
Documents sighted by IT Edge News revealed that the company plans a formal launch in April 2023 and is already recruiting key staff to push its market entry.
Amazon has since 2016 started exploring Nigeria’s market with its Prime Video subscription services and its Amazon Web Services (AWS).
With its Prime Video streaming services, Amazon has gradually reworked that burgeoning sub-sector with massive investment in production and licensing deals with local film and television studios.
AWS is already the go-to services for thousands of enterprises including big corporate players and small medium businesses (SMBs). These enterprises are leveraging lower cost, more robust and friendlier cloud and server hosting from the tech giant.
Its e-commerce launch to be fostered round massive infrastructures to support direct supply of goods from rural to urban centres would mean greater benefits for all actors in the production, supply chain including farmers and producers of local products. That is an edge Konga and Jumia are unlikely to firm up on.
Amazon is entering the market with unmatched financial and technical muscles. In 2021, retail Amazon’s e-commerce sales amounted to approximately 4.9 trillion U.S. dollars worldwide. This figure is forecast to grow by 50 percent over the next four years, reaching about 7.4 trillion dollars by 2025.4 Feb 2022, according to Statista.