Small e-commerce firms are following the path charted by Jeff Bezos
hair is straight, black and gloriously glossy. She made it herself. Mrs Ogualu and her husband run a business selling wigs, which are fashionable in Nigeria. At first buyers came to their small Lagos shop in person. Then they started selling their goods on Jumia, an e-commerce site, to customers across the country. Today about 60% of the Ogualus’ sales are made online.
But whereas Amazon’s international e-commerce sales grew by a comparatively measly 12% year on year in the second quarter, the upstarts’ sales are rising by high double digits or more, as the emerging world embraces the virtual one. MercadoLibre’s swelled by 94% in its most recent quarter. Shopee’s ballooned by 342%. Small wonder investors are giddy.
Jumia, Souq and MercadoLibre have all built their own sophisticated payment networks. MercadoLibre’s has turned into a fully fledged money-management system, complete with payments to friends, investment options and small loans.
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