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Despite being separated from
the continent, the Internet has become a vital source of communication,
particularly in business. But how does one know if the seller is being honest
with the customer? Internet users are increasing as the number of clicks on
sellers online has also increased significantly. Though the rise of Internet
users is increasing, sellers fail to attract buyers to make purchases. Every
online seller has tried to attract customers to make a purchase. But what determines
their purchase is through seller behavior and how they create a relationship in
the virtual world (Nielsen, 2015).
Traditional brick-and-mortar
stores were the most well-liked places to shop for a long time. However,
e-shopping has become a practical choice for customers as a result of
technology improvements over the past three decades. As sales growth from the
Internet overtook that from conventional and traditional channels of sales,
online shopping is no longer just an option; it has become the predominant
method of shopping in the modern world. The ever-expanding trend of online
shopping gives established businesses the chance to connect with their current
and potential customers through e-stores, which are cost-effectively created
for online sellers to offer consumers more merchandise options and
accessibility to products whenever and wherever they need it.
Nielsen produced a research
in 2015 analyzing the global state of Internet shopping. According to the
research, over 875 million people shopped online that year, a 40% rise over the
preceding two years. South Korean e-shoppers topped the list of customers with
the largest percentage share of online purchasing at 99%. The United Kingdom,
Germany, Japan, and the United States were next on the list, with 97%, 97%, and
94%, respectively. Books were the most popular item (41% of all products
purchased online). Clothes/Accessories/Shoes (36%), Videos/DVDs/Games (24%),
Airline Tickets (24%), and Electronic Equipment (23%) rounded out the top five
most popular Internet purchases. In Africa and the rest of the poor world,
however, the image of internet.
Therefore, it is clear that Internet acceptance and usage in Africa are getting bigger and will only keep getting bigger. Aside from Internet penetration, another pressing problem hindering e-shopping take-off in Africa is the critical technology infrastructure. The African continent, as compared to other regions of the world, has poor Internet regulation, poor road networks, ineffective postal systems, expensive telecommunication, and unreliable power supply. These are the bedrock for the ICT infrastructure necessary for the optimal performance of online shopping.
POTENTIAL OF ONLINE SHOPPING
IN SOMALIA & INTERNATIONAL
The “Internet” is not part of the major keywords
for the literature of Somalia. Piracy, poverty, corruption, female genital
mutilation, and Al-Shabaab are a few of the many unpleasing keywords that show
up when you check almost all the scholarly databases. However, comments and
unreliable evidence suggest that the story of the Internet is surprising and
interesting in Somalia. Although the Internet penetration rate is below 13.7%,
the impact of the Internet is a national level. Because Somalia is the second
most corrupted country in the world, and Somali citizens use the Internet as a
quick hand to reach their government; therefore, escape from the rampant
corruption present in the various governmental institutions. For example, a citizen
became a victim of a corruption case when he violated traffic rules. The
traffic cops stole more money than the fine he should have paid.
The same citizen used social media to spread his case, and posted photos showing that he paid more than the amount indicated in the invoice since the majority of Somali people use mobile banking, so it is easy to prove the amount paid. The case became viral in Somalia, and within a week, the government responded, arresting an “alleged” police officer for an investigation. Therefore, the rise and the impact of the Internet in Somalia are significant and noteworthy. The growth rate of Internet usage in Somalia was 2.27 million internet users In January 2022, meaning Somalia received the second-highest Internet usage growth in Africa, only second to the Democratic Republic of Congo.
In addition, Somalis are pioneers of mobile banking. The country has one of the most active markets in the world for mobile money usage. More than 70% of the population has mobile accounts compared to 15% who use formal bank accounts. In addition, more than 80% of mobile phone owners use mobile money (more than 85% of Somalis aged above 16 years old have subscribed to a phone company). These statistics represent a strong demand for international e-retailers to establish a presence in Somalia and are the main causes of the rising number of e-retailers opening up shop there.
Somalia was the first
country to use an automated teller machine (ATM).Credit or debit cards are used
by the Somali Diaspora, foreigners, government officials, and a few
professionals and academicians, although mobile bank accounts are used by more
than one-third of the population. As a result, any e-retailer considering doing
online business in Somalia should accept mobile payments, the primary payment
method, and incorporate them into their e-store. As a result, the purpose of
this study is to analyze Somali consumers' awareness and perception of online
buying, as well as their proclivity to shop online.
In terms of the international potential of online shopping, research indicate that there has been a considerable increase in Online Shopping due to the increased use of mobile and internet technology. Customers connect with sellers through different online buying platforms, such as Amazon, to provide the finest online shopping experience possible.
Online shopping is becoming more common in most industrialized countries, and the online purchasing experience has greatly improved. People have begun to place their trust and confidence in internet businesses, and these businesses have been able to give the highest quality. Not only in rich countries, but also in emerging ones, has online shopping risen at a remarkable speed. Furthermore, the rate of growth of e-commerce has slowed. Not only in rich countries, but also in emerging ones, has online shopping risen at a remarkable speed.
Furthermore, the rate at which e-commerce has grown has
clearly overtaken traditional shopping techniques. In many industrialized
countries, online shopping is common. Shopping on the internet is still in its
infancy in many undeveloped nations, including Somalia, where many people do
not utilize it. This is especially true for east African countries like
Somalia, where IT infrastructure development and implementation are still
happening. As banking is a key component of the service industry, it is
essential for the banks to work resourcefully through the use of Internet
banking. Although Internet banking is still unfamiliar to many Somali users and
is still at an early stage of its development, with fast increasing Internet
population users, it predicted a huge market potential for banks to explore.
However, for any skills to be successfully introduced and used, the users have
to accept and use the technology.
Customers in industrialized and most emerging nations do not go to banks to conduct transactions; instead, they conduct them online from their homes, offices, or anywhere they are using the internet. In Somalia, online transactions are still in their infancy, and online commerce is underutilized (Warsame, 2018). Many consumers would rather go to acquire products and ship them than place online orders, saving time and money. However, due to a lack of trust, delivery logistics, and personal income, Somali consumers prefer to pay by cash or Electronic Voucher Cards (EVC) when the product is delivered rather than using credit cards.
This is
becauseThis is due to a lack of understanding of how to use e-commerce and a
lack of skill in the English language. Because English is extensively used on
the Internet, the less educated and uneducated people in Somalia were unable to
read and understand the language. of the lack of information on how to use
e-commerce and the low ability in using the English language. Because English
is extensively used on the Internet, the less educated and uneducated people in
Somalia were unable to read and understand the language.
As a result, one of the most
important contributions of this study is the identification of limitations or
challenges impeding the growth and explosion of online shopping in Somalia.
This causes customers to have difficulty purchasing goods and services near the
end of each month, when most salaries are paid via mobile transfer. This may
have a negative impact on reducing time, place, and distance constraints;
customizing products and services, processing payments, or cross-selling; or
the internet may emerge as the dominant digital platform that disrupts and
revolutionizes enterprises.
Furthermore, compression technologies are transforming the web, the internet's platform, into a multimedia platform. Making the internet a fully interactive platform. (Ho & Ko, 2008). However, due to delayed technological improvements, poor consumer adoption, and the use of online banking is still in its early stages, internet banking is relatively new in Somalia.
Online shopping is growing increasingly popular all around the world. Particularly in industrialized countries where ICT and other cutting-edge technology, such as IR4.0, have achieved great success and the prospects for online shopping are widely acknowledged. However, in developing African nations such as Somalia, online shopping has not achieved the level of success that it could.
Although the usage of the internet and mobile technology in Somalia has increased significantly over the years, penetration remains low (I. S. Y. Ahmed, 2020). This could possibly be the cause for the country's low internet purchasing penetration. There is an obvious need to investigate strategies and approaches for accelerating the expansion of online commerce in the country.
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