Nigeria’s e-commerce sector booms amid rising competition

By Juliet Umeh

With over 103 million internet users and a rapidly expanding online retail space, Nigeria’s e-commerce landscape is witnessing unprecedented growth. Yet, competition from thousands of small businesses selling through Instagram, WhatsApp, and local marketplaces is making it harder for entrepreneurs to stand out.

However, the Country Head of Zoho Nigeria, Kehinde Ogundare, has said that entrepreneurs seeking to scale sustainably in the country’s increasingly competitive digital economy must adopt strategies that focus on niche targeting, data-driven decision-making, and building customer trust among others.

According to him, the first step is to focus on a niche rather than the crowd.

He said: “The internet offers endless reach, but success often lies in narrowing your focus. Instead of trying to appeal to everyone, identify a specific audience whose needs you understand deeply, whether that’s fitness enthusiasts, parents, or students. Niche targeting allows you to tailor your message, pricing, and product experience while building loyalty and credibility in markets where advertising budgets are limited.”

The second step, he explained, is to build relationships beyond social media. “Social platforms are powerful but unpredictable,” he noted.

“Algorithms change, engagement fluctuates, and visibility can vanish overnight. That’s why it’s essential to diversify how you stay connected with customers, through email newsletters, community groups, or loyalty programs that build lasting relationships.”

Ogundare also stressed the need to use data to understand customer behaviour. “Every click, search, and abandoned cart tells a story,” he said. “Tracking customer behaviour through analytics dashboards or feedback forms can reveal why shoppers drop off and what keeps them coming back. Data-driven decisions help eliminate guesswork and improve user experience.”

The fourth strategy, he said, is to create content that answers real questions. “Many Nigerian shoppers research extensively before buying online, especially from lesser-known brands,” Ogundare explained. “Publishing helpful content such as FAQs, size guides, or product comparisons can bridge the trust gap and make your business appear credible and dependable.”

He further advised entrepreneurs to explore automation and AI for efficiency. “Artificial Intelligence is reshaping how small businesses operate globally, and Nigeria is no exception,” he stated.

“From customer support chatbots to inventory management and personalized recommendations, automation can simplify repetitive work and help business owners focus on strategic growth.”

  Ogundare said entrepreneurs must build credibility through customer voices.

“Nigerians value peer opinions. Reviews, testimonials, and user-generated content often carry more weight than brand messaging, displaying honest reviews on your website or social pages signals transparency and confidence.”

According to him, building a successful online business in Nigeria’s evolving e-commerce landscape isn’t about chasing every new trend or relying solely on social platforms.

“It’s about clarity, consistency, and connection,” he added.

“By focusing on real customer needs, learning from data, and earning trust at every step, businesses can create lasting impact in one of Africa’s most dynamic digital markets.”

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