Industry: ICT & Media | Publish Date: 17-Sep-2024 | No of Pages: 135 | No. of Tables: 101 | No. of Figures: 46 | Format: PDF | Report Code : IC2263
The Africa Digital Marketplace Market size was valued at USD 10.25 billion in 2023, and is predicted to reach USD 20.23 billion by 2030, at a CAGR of 9.9% from 2024 to 2030. Digital marketplace market, also referred to as online marketplaces or digital commerce platforms, serve as virtual hubs where individuals engage in the exchange of goods, services, or information. Acting as intermediaries, these platforms facilitate transactions among various parties, including buyers and sellers, within a centralized online environment optimized for effortless product discovery, purchasing, and delivery. Noteworthy examples of online marketplaces encompass well-established e-commerce platforms such as Amazon, eBay, and Alibaba, as well as service-oriented platforms such as Upwork and Fiverr.
Leveraging advanced technology, these platforms streamline transaction processes, ensuring prompt and secure payment processing while safeguarding the financial data of all involved parties. Moreover, they enhance user experiences by providing features such as customer reviews, ratings, and mechanisms for resolving transaction-related issues. Consequently, online marketplaces utilize technology to improve the overall online shopping experience, enhancing convenience and security for both buyers and sellers. They play an essential role in the modern economy by bridging the gap between businesses and consumers across different geographic locations, thereby facilitating seamless and convenient global commerce.
Africa is positioned for significant growth, fueled by the expansion of online marketplaces across the continent. For example, Amazon is poised to launch its online marketplace, Amazon.co.za, in South Africa in 2024. This marks Amazon's inaugural entry into the South African retail market, offering local sellers the opportunity to reach customers nationwide.
The platform aims to empower small- and medium-sized businesses by providing a wide array of products, competitive pricing, and consumer convenience. As online marketplaces continue to evolve and extend their reach in Africa, they play a pivotal role in propelling the growth of the digital marketplace market and reshaping the retail landscape across the continent.
In April 2024, Zando, a South African online fashion retailer, unveiled an international e-commerce division named Zando Global to rival fast-fashion Chinese e-commerce giants Shein and Temu in South Africa. This strategic initiative by Zando aims to cater to the escalating demand for budget-friendly apparel and counter the competitive pricing offered by Shein and Temu.
Zando Global will serve as a reliable alternative for South African consumers to purchase international products, featuring a diverse range of items including fashion, homeware, gadgets, and wigs. Through the provision of a broad product range and free shipping options, Zando Global contributes to the growth and diversification of the digital marketplace in South Africa, fostering competition and innovation in the e-commerce landscape.
When consumers perceive online platforms as vulnerable to cyberattacks hesitate to share personal information or engage in transactions due to concerns about privacy breaches or financial harm.
This leads to reduced utilization of digital marketplaces and reluctance to participate in online shopping, thereby hindering market growth. Furthermore, instances of data breaches or fraudulent activities damage the reputation of online marketplaces, discouraging both consumers and businesses from active involvement in the online marketplace environment.
The incorporation of AR and VR technologies presents an opportunity for online marketplaces to offer users immersive and interactive shopping experiences. These technologies enable consumers to visualize products in real-world contexts, virtually test them before purchasing, and explore dynamic virtual environments. Such immersive encounters not only enhance customer engagement and nurture brand loyalty but also drive sales.
Additionally, AR and VR empower businesses to effectively showcase their products by providing detailed information and personalized recommendations to users. Thus, the integration of AR and VR technologies are capable of the potential to revolutionize the future of digital marketplaces by delivering innovative and captivating shopping experiences.
The key players operating in the Africa digital marketplace industry include Etsy, Alibaba, Wish, ASOS, Amazon Inc. and others.
Desktop
Mobile
Tablets
Business to Business (B2B)
Business to Consumer (B2C)
Consumer to Consumer (C2C)
Commercial
Personal
REPORT SCOPE AND SEGMENTATION:
Parameters |
Details |
Market Size in 2023 |
USD 10.25 Billion |
Revenue Forecast in 2030 |
USD 20.23 Billion |
Growth Rate |
CAGR of 9.9% from 2024 to 2030 |
Analysis Period |
2023–2030 |
Base Year Considered |
2023 |
Forecast Period |
2024–2030 |
Market Size Estimation |
Billion (USD) |
Growth Factors |
|
Companies Profiled |
5 |
Market Share |
Available for 10 companies |
Customization Scope |
Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |
Etsy
Alibaba
Wish
ASOS
Amazon Inc.