Team Shega
Addis Ababa, Ethiopia
E-commerce, the buying and selling of goods and services over the internet, has the potential to boost Ethiopia's economy according to recent research titled E-Commerce Ecosystem Report 2024. The country benefits from a large domestic market and a strategic geographical position, all of which create significant opportunities for expanding e-commerce both locally and across the continent.
Ethiopia's e-commerce journey began in 1998 with Ethio Link, targeting the diaspora. However, operational challenges and limited local engagement hindered its growth. The 2012 introduction of 3G internet spurred the emergence of local platforms like Yenestore and Qefira. The government's "Digital Ethiopia 2025" strategy further accelerated e-commerce growth, driven by increased internet access, smartphone usage, and digital payment solutions.
The shift towards digitizing the trade of goods through the Internet has given rise to various e-commerce business models and currently, there are over 80 e-commerce platforms in the country.
The entry of global e-commerce giant AliExpress is anticipated to bring a definitive impact to Ethiopia’s e-commerce sector. Additionally, the emergence of niche-specific platforms like Store251 and Mismar along with innovative entrants to the scene like Buyer First will likely contribute to the ecommerce ecosystem.
However, the research also indicates that Ethiopia's e-commerce landscape is still in its infancy, with 58% of platforms earning less than $10,000 annually.
The Report 2024 highlights that only 2% of platforms report annual transaction values exceeding $500,000, with many struggling due to unclear business models and revenue generation strategies. Additionally, high inflation and limited access to financing further hinder their ability to scale operations effectively.
The report also notes that 70% of e-commerce platforms launched within the last three years, indicating a trend towards rapid market entry but also contributing to low transaction volumes.
To stimulate e-commerce growth, integrating digital payment options into popular social media platforms can significantly boost online shopping. Additionally, MSMEs, numbering around 2.29 million in Ethiopia, are increasingly utilizing digital channels to expand their reach and contribute to the nation's e-commerce ecosystem, according to the report.
Afrotie is an Ethiopian marketplace established in 2018 by Tie Technologies. Afrotie currently allows users to either buy or sell different products and services across 14 cities in Ethiopia. The platform has a location filter option, which allows different buyers and sellers in their cities to connect with each other.
Jiji Ethiopia is the subsidiary of Jiji, which is an African online marketplace platform established in 2014 in Lagos and operational across different African countries, with Jiji entering Ethiopia at the end of 2020. Jiji currently sells around 16 different categories of goods and services, with the platform’s overall listing of product ads being around 200,000 as of February 2024. Jiji Ethiopia also has one of the largest downloads from the Google Play Store, which is around one million downloads
Beu Delivery is a platform initially focused on providing door-to-door delivery services for food from various restaurants. Recently, Beu has broadened its scope by venturing into the e-commerce sector. This expansion allows supermarkets and specialized product sellers, such as cosmetics vendors, to sell their products directly to end-users. Beu calculates its delivery fees based on the distance between the buyer and the seller, aligning its pricing model with the logistics involved in each transaction.
Mekina Net is an online marketplace that primarily operates in the automobile industry. The platform is accessible through mobile applications and websites. Users can buy cars from private sellers, brokers, or various car dealerships in Ethiopia. Additionally, the website allows users to connect with different car suppliers worldwide to import their products. Mekina Net is also expanding its portfolio to include spare parts.
ChipChip Social is an e-commerce platform that is mainly engaged in allowing users in Ethiopia to have affordable group purchases in the Ethiopian agricultural market. The platform connects customers directly to farmers, bypassing traditional supply chains and allowing for group purchases of different agricultural products. The platform offers dual pricing, in which individuals can also purchase alone at the market price and get discounts while purchasing in groups.
Engocha is an Ethiopian online marketplace that offers a variety of products and services. It allows buyers and sellers to list their products and services with no charges. Additionally, Engocha provides two paid services for sellers. The first is a business account, which enables users to post unlimited products daily. The second is Diamond Boost, an advertising service that provides up to ten times more views on a product than other posts. Customers who subscribe to Diamond Boost can advertise their products on various Engocha social media channels.
Aradamart is a membership-based retail and e-commerce platform offering a wide range of high-quality products at competitive prices. Catering to both individual consumers and business clients, Aradamart. net provides a unique shopping experience similar to that of leading warehouse clubs like Costco. Members enjoy exclusive access to bulk purchasing, significant savings, and tailored services.
Zmall Delivery offers a convenient supermarket delivery service, bringing groceries right to customers' doorstep. It allows shopping from a wide selection of fresh produce, pantry staples, and household essentials, and has them delivered at a time that suits customers. It lets customers enjoy the convenience of hassle-free grocery shopping from the comfort of their home with Zmall Delivery.
Hello Market is an online shopping platform with a selection of leather products, coffee, apparel and accessories, shoes, jewelry, tools and hardware, housewares, furniture, sporting goods, beauty and personal care, and more.
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