E-commerce has grown in Ghana over at least the last decade. The use of online platforms in transacting business has been on the rise, and that aspect of the Ghanaian trade space continues to develop.
As part of the Citi Business Festival 2023, the spotlight was put on Ghana’s retail and consumer market.
On Monday, June 19, 2023, Michael Kottoh, Managing Partner at Konfidants, highlighted the changing scene of the Ghanaian retail market in an on-air series.
In that interesting conversation, he described “online is the most exciting face of Ghana’s retail space at the moment” as he touched on how e-commerce is shaping the trends in retail business.
Here are some takeaways:
Integrated market systems that build trust
Fraud attributed to classic e-commerce platforms is being eliminated through integrated market systems of e-commerce platforms, payment, and delivery logistics. Credibility and marketplace integrity are now rising to boost consumer confidence. There is also the emergence of platforms trying to correct the problematic trust deficit between buyers and sellers.
Use of social media
Instagram, Facebook, and WhatsApp are now being used to enhance business transactions. This is mostly powered by Mobile Money and independent delivery logistics, complemented by Google Maps and accessories to connect potential business customers.
Emergence of smart low-cost inventory techniques
Businesses no longer have to worry about investing in inventory systems or warehousing. They are not buying space to stock goods, but rather advertising products and using product pre-order modules where goods are sourced directly from wholesalers and delivered to the buyer. Overall, the cost of operation is now much lower, which aids in competitive pricing to increase margins.
Support services now on the rise
Logistics and delivery businesses are now one of the fastest-growing retail businesses in the country. Owners of motorbikes have found new business opportunities in the delivery support business.
Birth of fintechs
Establishment of payment service providers is now increasing, thus supporting online businesses. This is a segment that would not have existed but for the fastest-growing online retail business.
Changes in the advertising industry
There is now a rise in influential marketing. This was previously dominated by celebrities, but there is a new class of people who are not celebrities but have positioned themselves as entrepreneurs purposely to attract traffic online. These new online advertisement entrepreneurs represent a whole new line of business category.
Side gigs for working professionals
Now, there are a lot of working professionals who sit in offices working but do online retail business on the side during breaks or after work as another source of income to complement salaries.
Online trade is opening Ghanaian SMEs to global retailers.