Monday, September 28, 2020 / 05:50 PM / By OpEd
by Olukayode Kolawole / Header Image Credit: Financial Express
Covid-19 pandemic has left
the world in dire straits by causing a recession from which global economies
will have to wait till 2022 for recovery. The World Bank 2020 Global Economic
Prospect, June 2020, forecast that the pandemic will plunge all countries into
the worst recession in history. The United States' economy slipped into
recession due to the coronavirus crisis. Canada, Germany, France and Japan have
all been dealt with strong economic blows. Bringing it home, Nigeria's Minister
of Finance, Zainab Ahmed recently said Nigeria is heading towards recession
unless the country achieves a very strong Q3 economic performance.
The implication is that
business leaders have to navigate shattered expectations and continued
uncertainties. For the government, big spending is required to stimulate the
economy, but while at it, shrewdness should be the keyword. Funding gaps must
be identified to prevent all sort of wastage.
This model applies to
consumers as well. The downside, however, is that many unemployed Nigerians,
who have lost their livelihood during the crisis are broke, don't have enough
money, and spend the little they have on the basic essentials. The lucky ones
who still have a job tend to take cost-cutting measures by reducing expenses
and unnecessary spending.
Therefore, Nigerians today
look for the best bargain on every naira and kobo spent and this is where
cost-effectiveness of online marketplace can be of help. Though many still have
their reservations about online shopping, it is fair to say that eCommerce is
gaining more patronage by the day in Nigeria. Platforms such as Jumia, Konga,
Jiji, showcase a variety of products from their stocks and various stores.
Customers have thus availed the opportunity of browsing to select products
according to choice and latest trend.
Online
marketplace not only provides an unlimited array of products, but they also
offer lower prices. There are several options available to compare prices from
different stores and manufacturers. E-retailers also offer discounts on
different products. Going for online shopping can be a cost-saving move at this
time. Mind you, lower price on eCommerce platforms doesn't translate to lesser
quality. It is part of eCommerce strategies for competition. For instance,
Jumia often informs sellers on their platforms on the need for competitive
pricing. "We are always informing our sellers on why they need to provide value
to customers with competitive pricing. What customers want especially at this
period is best deals at affordable prices. They will go for products that help
them save more, and one of the advantages of online stores like Jumia is to
provide a wide range of assortments to customers at the best market prices
possible," said Operating Officer, Jumia Nigeria, Omolola Oladunjoye.
Those who bank on public
transportation for their daily work and business routine would agree that the
fares have increased on virtually every route, especially in commercial hubs
like Lagos. This is largely due to the limited number of passengers a bus or
and tricycle can carry per trip. Hence, the convenience of eCommerce can help
save the cost of transportation and associated traffic stress. Online shopping
provides you services from the comfort of wherever you are with mobile internet
without the worry of working hours. eCommerce platforms run their logistics
networks that cover transportations and delivery of your products even at a
lesser cost when compared to present-day public transportation fares.
What you want to avoid
like a plague, for now, is compulsive shopping. While physical stores have
assistants that can lure you into buying what you don't need or want to buy, such
distractions or pressure are not present at online stores. You shop at your
pace and don't need to think twice before logging out if you can't find what
you need. Added to this is the discrete shopping experience. Online shopping
provides you with the privacy that protects your choice from the public,
especially on sensitive products. Product packaging is done in a way that even
the delivery agent can't identify what's in the package.
As we all embrace the new normal and its
biting economic realities, native knowledge requires frugal spending. A leeway
out for businesses and customers alike especially will be to leverage the
digital offerings such as eCommerce.
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