Leveraging Income Distribution Data To Drive Sales In Ecommerce

Do you know what it means to leverage income distribution data to drive sales in ecommerce? 

This article brings you details of how to use income distribution data to make strategic decisions, outperform your competitors, and make more sales. 

Before we delve deeply into this topic, it’s vital to understand that ecommerce in Nigeria and Africa is thriving a great deal. As a result, there are discoveries on best practices and strategies in the ecommerce industry every single day. 

This is to help start ups and existing businesses avoid failures from common mistakes that could hinder their growth and scalability. This is the reason for this article – to help you make informed decisions and drive sales in ecommerce.

Also, it seeks to answer boggling questions and remedy to the challenges associated with failed strategies and start-up ideas in ecommerce.

When you know how to leverage income distribution data, you’d be able to create an ecommerce business idea that is relevant.

Furthermore, finding a market fit while providing solutions that matter, and eventually driving sales in ecommerce will be seamless, when you understand how to use income distribution data. 

In the subheading below, we would examine some statistics showing the growth and significance of the ecommerce industry in Nigeria and Africa at large. 

State Of The Ecommerce Industry In Nigeria (An Overview)

Nigeria has a thriving digital landscape and is one of the largest internet economies in Africa.

With a large population and a young demographic, Nigeria has a wide category of digital audience.

What’s more?

Internet penetration is around 55%. 

This number is projected to increase steadily. 

Mobile devices are more frequently used for internet access than desktop devices, with over 84% of internet access recorded on mobile devices in 20201.

Furthermore, the e-commerce market in Nigeria is estimated to be around $7.6 billion in 2021.

By 2023, it is projected to reach $9.02 billion with a continuous annual growth rate of 12% between 2021 and 2025.

The market size in 2024 was estimated at $7.52 billion.

Another estimate suggests that the market size will be $8.53 billion in 2024, with further growth expected to reach $14.92 billion by 2029.

Jumia, based in Lagos, is the most popular online marketplace in Nigeria.

From these stats, we can deduce the following:

• Large and Growing Internet Economy
• Significant Digital Audience
• Rising Internet Penetration
• Dominance of Mobile Internet Access
• Growing E-commerce Market

How then can you leverage income distribution data to drive sales in the Ecommerce industry in Nigeria?

Let’s see. 

Income Distribution Data – How To Use It 

Income distribution data is the piece of information that shows you how income is spread across different segments of a population. It helps you understand the relative differences in the wealth of various groups of a society. In this section of the article, we would get to understand how to use this tool to drive sales in ecommerce.

Income distribution data is useful in economic planning and growth. Noting that emergence of businesses and start-ups is also instrumental to the growth and development of a nation, income distribution data helps to create sustainable innovations and to ensure that we form ideas based on data.

That said, where do we find the income distribution data?

There are platforms that provide this information. You can download them from places such as World Inequality DataBase or World Bank. 

The World Inequality DataBase for instance allows you to search by country. This means you could get the income distribution data for any country you desire.

See Nigeria’s Income Distribution Data here. 

You need to explore the platform, navigate from one indicator to the other, make comparisons from one year to the other, based on the information or analysis you seek.

You may want to know the average income or wealth of adults and individuals in Nigeria for a particular year. For instance, the above shows data for 2011. 

If you want to compare data from year to year, you simply change the year. 

Explore the available key indicators.

From various population sections, wealth income ratio and percentages, you can easily compare the data and make informed decisions. 

When we talk about having these statistics on the country level, it may be a bit more sophisticated for us to make better comparisons. 

We may want to go to various states in the country. Nigeria being our focus here, in case you want to search within the states, the various income distribution data for analysis and decision making, a platform like Global Data Lab will be useful to you in this regard. 

This is a shot from the page that shows the database for Lagos State,  Nigeria on Global Data Lab. 

You can discover the wealth, poverty and asset level, and change indicators and subnational regions, years, e.t.c. 

Furthermore, you can have this information downloaded in a PDF format for your use. 

Explore facts and figures, within various platforms provided in this article. Make analysis on which need to meet based on the income level researched across various locations. These will inform your business or start up idea in ecommerce. 

Find out segments of the populations viable for the product you intend to create. Also ask yourself if there’s the purchasing power for it. Else, you create a product for a class of people who can’t afford to pay for it.

With these in place, you’d create a product idea or be able to set strategies in place that will generate sales for you in the ecommerce industry. 

In conclusion, it’s important to place a strong emphasis on using data to make informed decisions. When starting a business or creating effective marketing strategies in the ecommerce industry, prioritize data.

It will help to target the best locations. You’d get income levels of various categories of people, thereby using data to drive maximum sales. 

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