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Wednesday, 29 November 2017 14:06

E-commerce in Kenya Featured

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The internet is currently an integral part of current societies and economies around the world, and this is not any different in Kenya. Development of the Internet has led to a transformation that had not been previously precedented in the business world, social interactions, communication, education and research, philanthropic pursuits, governance and other aspects of life. In Kenya the Internet started in the 1990s, but until 2009, the internet was low and was also an expensive affair, as the country depended on expensive satellite connection.

Status of E-Commerce in Kenya

The internet dramatically improved in the country after the landing of the submarine cables. Since then, entrepreneurs in the country have managed to acquire ideas and apply technological innovations in creating new products and services, as well as business models. The internet has also given way to business that are based on the internet, commonly referred to as internet-based or online companies, a name that is used for a company that conducts nearly all its business activities online, since these companies are also involved physical logistic systems. The convenience that comes with activities such as online shopping in the country have gone a long way in promoting e-commerce in Kenya. There has been a witnessed allure to customers that value the efficiency and ease of buying products and services online, including tickets and travel packages. Surveys conducted in the country confirm that the promotion of e-commerce in the country has been promoted by the ease of access to universal products and services, such as clothing/shoes/accessories, books, electronic equipment, cosmetic and nutrition supplies, tours/hotel reservations, among others. Additionally, online-shops and online transactions have had a great appeal with one-third of online consumes in the country preferring sites that also have traditional brick-and-mortar stores, as well as those that allow consumers to choose products from different online stores.

Models of E-Commerce Used in Kenya

There is a variety of models of e-commerce that are most common in Kenya. The first one includes Business-to-Business (B2B e-commerce), which refers to the full extension of activities that take place between two companies or organizations, and which stand out as the most common form of e-commerce. The second model is Business-to-Consumers (B2C e-commerce), which includes retailing transactions between businesses and individual shoppers. An example includes online retailers such as Target.com and Amazon direct. Another common model is the Consumer-to-Consumer (C2C e-commerce), which includes transactions between customers. The e-commerce website serves in facilitating the made transactions. Examples of auction sites used by consumers in the country includes OLX and Jumia. For the Customer-to-Business (C2B e-commerce) model, it allows customers to sell their products and services to businesses. Examples of sites that conduct C2B e-commerce includes Monster.com and Task Rabbit. Additionally, aside from the above models, e-governance has also been a critical aspect in the country, which is an umbrella term used in referring to transactions between the government and other entities, such as business, companies, organizations, and other governments. The revolution of e-commerce is far from over, and newer models and opportunities in the country are expected to arise as internet technologies continue to develop.

Read 89 times Last modified on Wednesday, 29 November 2017 14:15

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