E-commerce growth: Emerging consumer behaviours and trends

In today’s digital age, the business of buying and selling of goods and services over the internet is on the rise. It is called electronic commerce (i.e. E-commerce). The eCommerce market includes businesses that operate solely online alongside those that have physical presence but also sell products or services online.

E-commerce relies heavily on the internet’s worldwide web and the use of electronic data interchange (EDI) where transactions involve the use of computers, tablets and smartphones. In this regard, E-commerce platforms must be designed with a user-friendly interface with accessibility and convenience search features to guide users.

Types of E-Commerce Models

The e-Commerce market encompasses a wide range of industries ranging from retail and consumer goods to travel and hospitality. It is a rapidly growing segment of the global economy. eCommerce has enabled businesses to reach customers worldwide, launch innovative products and services and increase revenue. E-commerce models include:

• Business to Business (B2B): Transactions between businesses.
• Business to Consumer (B2C): Transactions between businesses and individual consumers.
• Consumer-to-Consumer (C2C): Transactions between individual consumers.
• Consumer to Business (C2B): Transactions where individuals sell products or services to businesses.

Key Elements of E-commerce

For e-commerce to thrive, several key elements and conditions must be in place. These include:

• Digital Infrastructure: This relates to networking technologies or underlying systems and protocols that will enable communication and data transfer. A robust digital infrastructure is essential for connecting buyers and sellers over the internet.
• Databases: Repository or Data Warehouse for storing and managing product information and customer data.
• Electronic Mail (E-mail): For communication between parties.
• Payment Systems: For processing transactions securely.

Drivers of the E-Commerce Market

According to reports, the Africa e-commerce market size reached $ 317.0bn in 2024.In addition, MARC Group (a global management consulting firm with operations in 6 major continents and across 100 countries) makes a projection that the E-Commerce market will reach $1,017.0 bn by 2033 with a growth rate (CAGR) of 13.8%. This article further looks at the main drivers of the E-Commerce Market.

–Rising Digital Literacy

Digital literacy encompasses more than just an access to smartphones and basic internet browsing. It also involves one’s ability to conduct digital transactions with ease. As educational efforts intensify, digital literacy is increasingly becoming an essential skill for the general population.

The crux of the issue is that when consumers are digitally literate, they are more likely to contribute to product reviews, and even promote trustworthy platforms. In effect, they play an active role in enhancing the reliability and credibility of the e-commerce ecosystem.

-Economic Growth & Stability

Economic conditions have a profound impact on the E-commerce market. A stable economic boosts consumer confidence and drive their willingness to engage in digital transactions.

When consumers feel economically secure, they are more inclined to diversify and increase their online spending thereby encompassing both necessities and lifestyle purchases. A stable economy draws the attention of both local and global investors looking for burgeoning markets to invest in.

-Demographics & the Rise in Digital Devices

The E-commerce market is also being spurred by regulations aimed at boosting the digital economy. Others factors include the growing penetration of internet and smartphones, the increasing demographics of young and digitally literate individuals and the emergence of localized payment solutions to create a cash-lite economy.

Key Statistical Trends

According to Statista in a recent eCommerce report on Western Africa, these trends provide a deeper insight into the rise in the E-commerce market.

• Revenue in the eCommerce Market is projected to reach $11.80bn in 2025.
• Revenue will to show an annual growth rate of 74% (CAGR 2025-2029) and result in a projected market volume of $15.90bn by 2029.
• The number of users in the E-commerce market is expected to amount to 8m users by 2029.
• User penetration will be 7% in 2025 and is expected to hit 12.5% by 2029.
• The average revenue per user (ARPU) is expected to amount to US$343.90.

In Ghana, the number of users in the e-commerce market is expected to increase in total of 2.9 million users ( 55.88%) from 2024-2029.

In the same vein, the number of users in the digital payments segment of the fintech market is projected to increase in total of 4.9 million users ( 39.84%) within the same period. The revenue in the e-commerce market will also increase in total of $630.4m ( 68.76%) within the same time in focus.

Implementing E-commerce Strategies

A company’s ability to compete in the digital marketplace depends on how it fully integrates E-commerce platforms into its core marketing strategies. Some of the underlying strategies are:

1. Responsive Website Design

Responsive website design is an imperative for the e-commerce environment. E-commerce sites cater for the burgeoning segment of mobile users by providing a variety and fluid contents across various platforms.

Consumers can easily access information and opinions from various sources regarding product descriptions, reviews, ratings, blogs and videos. Consumers can also share their own opinions and feedback with other consumers and businesses through posts, comments, reviews or ratings on those social media.

These features enable consumers to make an informed purchasing decision. Consumers also expect businesses to be more responsive, transparent and accountable, and to provide seamless and consistent service across all channels and touchpoints.

2. Search Engine Optimization (SEO)

Search Engine Optimization is a critical aspect of any digital venture and ensures that a product or a service appears in relevant searches.

This way, search engine optimization creates visibility and attracts the right audience to a company’s products and services. A deliberate effort aimed at establishing a mutual relationship between E-commerce and digital marketing can significantly boost a business’s unique opportunity to drive online sales.

3. Advanced Data Analytics

It is important to keep track of buyers’ behaviour, preferences and engagement patterns and use the insights to fine-tune a business’ E-commerce strategies. A set of core data-related technology components such as a Data Warehouse, a Customer Relationship Management (CRM) system and a Data Management Platform can be deployed to provide a 360-degree view of a customer’s purchasing life cycle.

Benchmarking should also be an integral process e-commerce strategy. Through data analytics, benchmarking can help draw comparisons with industry metrics and evaluate performances.

4. Exploring Emerging Technologies

Emerging technologies such as artificial intelligence (AI) and immersive technology have opened up new possibilities for e-commerce. These technologies can enhance the online shopping experience, create new value propositions, and transform the e-commerce landscape.

Artificial Intelligence (AI) can analyze large amounts of data with regard to customer behavior, preferences, feedback, and social media from various sources and provide personalized recommendations, offers and contents.

Artificial Intelligence (AI) can also automate and streamline various e-commerce processes such as inventory management, marketing, customer service, and fraud detection. Artificial Intelligence (AI) can also help e-commerce businesses to predict customer demand, optimize pricing and improve customer retention.

Immersive technology transforms the digital experience by bringing together the virtual world with users’ sight, sound and touch. Virtual reality and augmented reality are forms of immersive technologies for creating, displaying and interacting with applications, content and experiences.

This new trend of technologies allows a person to feel part of an artificial or simulated environment. Virtual reality and augmented reality can also help e-commerce businesses to display their products in a more appealing and informative way, and to differentiate themselves from competitors. The global immersive reality market size is expected to hit over $134.18 billion by 2030 due to the proliferation of smartphones and connected devices.

5. Using Open-source Platforms

User interface elements such as product catalogs, checkouts and account management are some of the open-source staples for an ecommerce platform. Open-source platforms allow a business to accommodate evolving customer demands or needs.

Open-source content management systems and product information management software also eliminate the costs associated with proprietary systems and allow companies to configure the software according to the requirements of the product catalog on any platform.

Data Privacy & Security

Even though E-commerce is a powerful marketing tool for businesses to remain relevant in the digital marketplace, the associated risks cannot be underestimated. This is because it involves the exchange of sensitive personal and financial data between customers and businesses.

This makes it vulnerable to cyber-attacks such as hacking, phishing or identity theft. Businesses need to ensure that their e-commerce platforms are robust, secure and compliant with relevant privacy laws and regulations.

Conclusion

E-commerce has revolutionized the way businesses operate and how consumers shop. By leveraging the internet and digital technologies, e-commerce enables seamless and efficient transactions across various market segments.

As technology continues to advance, the scope and impact of e-commerce is expected to grow. In line with this, efforts at making data packages affordable will stimulate market expansion.

BERNARD BEMPONG 

Bernard is a Chartered Accountant with over 14 years of professional and industry experience in Financial Services Sector and Management Consultancy. He is the Managing Partner of J.S Morlu (Ghana) an international consulting firm providing Accounting, Tax, Auditing, IT Solutions and Business Advisory Services to both private businesses and government.

Our Office is located at Lagos Avenue, East Legon, Accra.

Contact: 233 302 528 977

                 233 244 566 092

 Website: www.jsmorlu.com.gh

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