The Role of E-Commerce in Facilitating International Trade in Africa: A Case Study of Individual Businesses in Ghana

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DOI: 10.21522/TIJAR.2014.12.02.Art001

Authors : Hamidu Augustus Abubakari

Abstract:

This study examined the role of e-commerce in facilitating international trade in Africa with a focus on individual businesses in Ghana. The important aspects in which the examination was done were on the current state of e-commerce in Ghana, factors that influence the choice of e-commerce platforms by individual Ghanaian business owners engaged in international trade, and challenges faced by individual business owners in adopting e-commerce for international trade. The study adopted the quantitative approach to research whereby a survey with the help of questionnaires was used to gather primary data from small business owners and individuals who use several e-commerce platforms for their business transactions. The collected data were analyzed by using descriptive statistical analysis. The study found that individual business owners use both local and foreign e-commerce platforms to buy different varieties of products. Concerning the local platforms, the predominantly used platform is Tonaton, followed by Jumia, Melcom Ghana, and Jiji. Also for the foreign e-commerce platforms, the predominantly used platform is Alibaba, followed by Amazon, Aliexpress, and eBay. The majority of the individual business owners buy products from these e-commerce platforms monthly and mostly use mobile phones to buy the products. The study revealed that majority of the business owners look out for reliable platforms, followed by platforms that are secured from scams, credible platforms, platforms that are designed to give customer satisfaction, and platforms that are easy to navigate. Moreover, the major challenge of most individual business owners is associated with fraudulent online shops, followed by delays in transaction activities, poor internet networks to access e-commerce platforms, high online transaction costs, and theft of ordered items or products.

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