Thursday, June 14, 2018

Online Shopping Implementation in Shoe Retail

Internet data subscription has continued to grow at a fast rate in Nigeria since the introduction of the GSM network in 2001. In May 2017, the number of subscribers to internet data services stood at 91,565,010 increasing significantly to 101,209,503 by April 2018, an increase of about 11% in just one year (Nigerian Communications Commission, 2018). This number represents a large proportion of the population of Nigeria given that the country’s population as at June, 2018 is put at about 198 Million people (National Population Commission, 2018).

This wide penetration of internet usage has had a significant impact on the adoption of online shopping in the country as evidenced by the growth of this sector sector from an expenditure of N49.9 Billion (about 164 Million USD) in 2010 to N78 Billion (about 256 Million USD) in 2012 representing an increase on 56% in just two years (Phillips Consulting, 2014).

Added to this is consumers’ identification of certain advantages and benefits of online shopping compared to the traditional brick and mortar in-store shopping (Kim, Ferrin, & Rao, 2008). Such advantages include the convenience of shopping with the ability to purchase goods and services at any time and from any geographic location in addition to saving cost as consumers can easily compare same products at different sites to obtain the best bargain.

Despite the growth of the local online shopping sector in Nigeria, many shoppers still prefer foreign retailers due to the paucity of credible local online retailers coupled with the high  delivery cost from abroad (Gabriel, Ogbuigwe, & Ahiauzu, 2016). This has however not stopped the increasing number of online retailers coming to market (Gabriel, Ogbuigwe, & Ahiauzu, 2016).

Figure 2 | Online Shopping in Retail | Source: ibm.com


The prospects and problems enumerated thus far can however be an opportunity for a shoe retailer to implement an online information system which presents all the advantages earlier enumerated while facilitating differentiation and creating competitive advantage that will enable it take advantage of the exponential growth in the online sector.

Such an information system must implement features that will ensure trust, convenience, ease of use, usefulness, high site quality and user friendliness among other features; others include Frequently Asked Questions (FAQs) and Security (Al-Maghrabi & Dennis, 2011). These features are described below:

S/No.
Feature
Remark
1
Convenience
Availability of solution on mobile, tablet, desktop.
2
Accessibility
System must be simple to use providing categories, filters and allowing product comparisons. Ability to return purchased items.
Easy checkout with adequate payment options.
3
Usefulness
Features like wish lists improve usefulness and are a sure way to drive traffic to the online site.
Detailed shipping information with low cost.
4
High Site Quality
High quality pictures and images that bear real life semblance to item being sold will facilitate purchase and engender trust.
5
FAQs & User Reviews
FAQs provide quick and easy way of getting answers to common questions while user reviews allow customers also engender trust.
6
Security
Security is key especially with the increased incidences of cybercrimes worldwide.

References
Al-Maghrabi, T., & Dennis, C. (2011). What drives consumers’ continuance intention to e-shopping? International Journal of Retail & Distribution Management, 39(12), 899-926.

Gabriel, J. M., Ogbuigwe, T. D., & Ahiauzu, L. U. (2016, October 11). Online Shopping Systems in Nigeria: Evolution, Trend and Prospects. Asian Research Journal of Arts & Social Sciences, 1(4), 1-7.

Kim, D. J., Ferrin, D. L., & Rao, R. H. (2008). A trust-based consumer decision-making model in electronic commerce: The role of trust, perceived risk, and their antecedents. Decision Support Systems, 44, 544–564.

National Population Commission. (2018). National Population Commission. Retrieved June 14, 2018, from National Population Commission: http://population.gov.ng/

Nigerian Communications Commission. (2018). Nigerian Communications Commission. Retrieved June 14, 2018, from Nigerian Communications Commission: https://www.ncc.gov.ng/stakeholder/statistics-reports/industry-overview#view-graphs-tables-5

Phillips Consulting. (2014). Online Shopping Report 2014. Retrieved June 14, 2018, from http://www.phillipsconsulting.net/files/online_shopping_report.pdf

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