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The contemporary person stays 70% of their active time on phone, and businesses have tapped into this routine. In Kenya, for example, people pay for everything from their mobile wallet, from fare to groceries, insurance, school fees, monthly rent and at the supermarket. MPESA has revolutionised online shopping and business transactions, making work easier.
Lessons from Kenya shows that the country is a distribution economy as a good number of businesses either market or take goods and services closer to people. This is a perfect scenario for online shopping since it help them reach to the remotest customer. With the number of walk-in greatly reducing, more companies are turning online to capture the attention of customers.
Google is everybody’s friend as they search for anything and everything. Even a simple item like a phone which people used to go to the market to buy, is now online. You can now buy anything at the comfort of your seat and the seller delivers it to your doorstep. The following are reasons why online shopping is taking over.
Payment Model Automation
Business are incorporating online payment options into their systems. Transactions are done online, with paper trail to show the buyer and seller. It makes no point if a buyer goes all the way to a physical shop. They can just buy and pay everything online.
Internet Penetration
The world is growing smaller, thanks to the internet. Government and internet solution companies are going deep into the hinterland, widening the circle. This gets the business closer to people which encourages online shopping.
Increasing Costs of Running an On-location Business
Opening branches all over is costly, and risks running the business into losses. Not all branches will be profitable, which makes online shopping a perfect solution. FMCG and basic needs businesses are now online, utilising the economies of scale
Competitive Pricing
With less business running costs, business reduces the selling price. It not only makes them competitive, but also increases earning in the long run.
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