E-commerce has a promising future. The business is quickly expanding in Kenya, with online sales estimated to reach $188 billion by 2025. A variety of causes are driving this expansion, including the increased availability of broadband internet, the development of the middle class, and the advent of mobile commerce.
Technology is having a significant impact on the future of e-commerce. Here are a few key developments that will have a significant impact on the industry in the next years:
The rise of artificial intelligence (AI). AI is being utilized to improve the e-commerce experience in a number of ways, from personalized recommendations to chatbots that can answer customer inquiries. Amazon, for example, employs AI to power their “Just Walk Out” system, which allows users to buy without scanning or bagging their own items.
The development of augmented reality (AR) and virtual reality (VR). Although AR and VR are still in their early stages of development, they have the potential to change the way people shop online. Customers could, for example, use AR to preview how furniture would look in their house before purchasing it, or they could use VR to take a virtual tour of a store.
The increasing importance of mobile commerce. Mobile commerce is already a significant force in the global e-commerce business, and its significance will only rise in the coming years. Mobile commerce, for example, is predicted to account for 69.9% of all e-commerce purchases in Kenya by 2024.
The need for personalization. In today’s competitive e-commerce market, companies must develop ways to personalize each customer’s buying experience. This can be accomplished through a variety of methods, such as gathering customer data and using it to provide targeted recommendations.
The emphasis on sustainability. Customers are becoming more concerned about the environmental impact of their purchasing habits. As a result, shops are under pressure to embrace more environmentally friendly methods. This could imply employing recycled materials in packaging or providing carbon-neutral shipping options.
These are just a handful of the main trends that will determine Kenya’s e-commerce future. Retailers will need to adapt to these changes in order to remain competitive as the sector grows.
In addition to the trends mentioned above, there are a number of other factors that are likely to have an impact on the future of e-commerce in Kenya. These include:
The expansion of the middle class: As the Kenyan economy grows, the middle class is likely to expand. This expands the pool of prospective customers for e-commerce firms.
The development of e-commerce infrastructure: The Kenyan government is investing in the development of e-commerce infrastructure, such as faster internet speeds and more reliable delivery services. This will make it easier for businesses to sell online and for consumers to shop online.
Overall, the future of e-commerce in Kenya appears promising. The industry is quickly expanding, and a variety of factors are anticipated to promote its ongoing expansion in the coming years.