E-commerce registered a huge boost in 2020, with consumers opting to shop online in order to avoid exposure to COVID-19. While value sales are still relatively low, current value growth grew by more than a half in 2020.
Prior to the COVID-19 pandemic, most Algerians preferred store-based retailers, so they could check the quality of the products before buying. However, since 2020, this has changed drastically.
Jumia Algeria, with its strong background, will continue to be the leading player of e-commerce in 2021. In fact, Jumia will continue to dominate e-commerce in terms of retail value share.
Other than mobile commerce, e-commerce is expected to be the fastest growing type of retailing over the forecast period and by 2026 value sales are expected to surpass both health and beauty specialist retailers and apparel and footwear specialists in terms of value sales. This will be mainly due to the rapid penetration of internet usage in Algeria.
Despite the significant progress of e-commerce, consumer trust in online payments is still rather low in Algeria. However, this is expected to gradually change over the forecast period, as consumers gain experience of the internet and e-commerce and at the same time, the necessary infrastructure is put in place.
Over the forecast period, there is expected to be an influx of new players present within e-commerce. This will be due to many store-based retailers launching e-commerce stores.
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Sales of consumer goods to the general public via the Internet. Please note that this includes sales through mobile phones and tablets (i.e. m-commerce). E-commerce includes sales generated through pure e-commerce websites and through sites operated by store-based retailers. Sales data is attributed to the country where the consumer is based, rather than where the retailer is based. The definition of e-commerce is agnostic as to where actual payment takes place; if an order is initiated online, it is considered to be an e-commerce transaction, even if the order is ultimately paid for in-store (or elsewhere). As a result, all ‘click-and-collect’ and ‘collect-at-store’ transactions are counted as e-commerce sales. E-commerce excludes sales of: (a) Consumer-to-consumer (C2C) and business-to-business (B2B) sales, although please note that sales between businesses and consumers (i.e. B2C sales) on sites such as eBay are included; (b) Sales of motor vehicles, motorcycles and vehicle parts; (c) Tickets for events (sports, music concerts, etc.) and travel; (d) Sales of travel and holiday packages; (e) Revenue generated by online gambling sites; (f) Returned products/unpaid invoices; and (h) Internet sales from direct selling companies, as these are tracked in Direct Selling market size/shares. Example e-commerce brands include Amazon.com, Zappos.com, Apple.com, iTunes, Rakuten, Tesco.com, Dell.com, Coles Online, etc. 3rd Party Merchant sales through online marketplaces, such as Amazon.com, eBay.com and Walmart.com, are included and split out in shares. 3rd party merchants are the summation of sales that come from businesses that are present on an online marketplace (e.g. Amazon, Alibaba). Marketplaces are websites that allow multiple merchants to sell on the marketplace website, with the marketplace operator processing the transactions, but many marketplaces provide offer other services as to help with shipping, handling, payment, and product storage. The marketplace is not the merchant of record legally, but for the sake of shares, sales from 3rd part merchants are attributed to the marketplace brand operator.See All of Our Definitions
This report originates from Passport, our E-Commerce (Goods) research and analysis database.
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