The rate of adoption of information technology is increasing exponentially and more than half of the world's population is connected to a computer or mobile device. In addition to being a gigantic repository of information, the Internet has now become a gigantic marketplace. The online business ecosystem is also evolving rapidly, especially in Africa. Most shoppers are now able to review products they would like to purchase online and make a purchase using a digital device such as a computer or smartphone (ITC, 2015). Since the birth of the Internet in 1991, many businesses have begun to migrate from simply conducting part of their business online to fully operating on the Internet. These companies refer to online based businesses. Most of these online companies also do Internet marketing. Internet marketing refers to the marketing of a company's products or services on the Internet. When used as a marketing strategy, the Internet has several advantages including speed, capacity, convenience and accuracy, which ensure it reaches more consumers than conventional advertising methods. Most consumers tend to first gather as much information as possible about a product, compare prices between different sellers and then make a decision. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay The seller of the product must then develop a marketing strategy that communicates as much as possible and convinces the buyer to possibly purchase the product or service (Kabuba, 2014). Online stores have numerous advantages over traditional physical stores. To the company itself, they offer operational efficiency, reduced inventory, lower communication costs, 24-hour operations and access to foreign markets. They also offer the consumer 24-hour services, more options for the consumer before making a purchase, and instant price comparisons between different sellers of the same goods and services. For example, before deciding to purchase a television, a buyer will be able to check out the different brands sold online, compare different sellers in terms of price and specifications, and finally make a purchase at any time of the day. Global PerspectiveIn 1999, there were around 300 million Internet users worldwide and global e-commerce transactions amounted to approximately $110 million. By 2013, global business-to-business transactions had increased to around US$15. 5 trillion, with business-to-consumer transactions absorbing approximately 1 US dollar. 2 trillion (ITC, 2015). Currently the world is a global economy where large multinational enterprises (MNEs) are able to connect with other multinationals or small and medium enterprises (SMEs). Thanks to the Internet, these companies are also able to connect with consumers across international borders. A good example is the UK-based Spice Kitchen online store, started by Sanjay Aggarawal in 2013 as a simple showcase of how to blend spices. Initially focusing only on Indian spices, the eBay-based company has expanded to serve over 2,000 customers internationally from South America, Asia and Africa. The company also deals in corporate gifts, wedding favors, spice master classes and chocolates (Ebay, 2016). The adoption of Internet technologies is considered a potential major contributor to the GDP of various nations around the world. According to the Mckinsey Global Institute, developed countries are benefiting the most from adoptionof the Internet compared to developing countries. According to the 2015 International E-Commerce Report for Africa, the average contribution of ICT to G8 economies was 3.8%, while the average for African nations was 1.1%. This gap leaves enormous potential for e-commerce growth in Africa (ITC, 2015). Despite numerous bankruptcies and retail store closures, online giants like Amazon and Ebay still continue to gain ground. Amazon is currently the world's third-largest retailer in terms of revenues, profits, assets and market value and ranks 83rd on Forbes' Global 2000 list of the world's largest and most powerful public companies. Amazon has ventured into industries like fashion and even launched its own private label. The company also deals with online groceries and is considering venturing into the pharmaceutical sector. In China, their largest online store is Alibaba, which ranked sixth. The company is the only non-American retailer to appear in the top ten of the Forbes Global 2000 list (Gensler, 2017). Big online shopping stores are organizing online shopping days which are seeing amazing sales. In the United States there is Cyber Monday where stores like Amazon, Target and Walmart offer discounts on selected products. In 2017, Cyber Monday was the biggest shopping day of the year, and online shoppers spent $6. 6 billion. Retailers therefore need to find creative ways to market their products online and attract more customers for such occasions (Amadeo, 2018). Regional Perspective The internet, e-commerce and technology-based platforms have completely changed the way Africa conducts business. Before the Internet, businesspeople often traveled long distances to make contact with potential buyers or sellers outside the continent. This often results in tying up a large portion of their resources in transportation costs. Currently, small business owners are able to communicate with international partners without leaving their offices. The Internet has completely eliminated the need for expensive travel or time-consuming networking activities. Technology has presented a good opportunity for Africa to compete with more developed continents in the global market space. Most African economies are developing economies or less developed economies. Developing countries usually adopt increasing exports as a development strategy. The global market therefore offers developing countries the opportunity to sell their products. Exporters, on the other hand, usually gain a lot in terms of technology and knowledge transfer through interaction with buyers from developed economies. Despite the potential profit from online commerce, most online shops only thrive domestically, but remain marginal on the international stage. While companies apply considerable innovation to serve domestic markets, they appear to be stuck internationally. Reasons identified include difficulty in conducting international banking transactions, a negative perception among international markets regarding doing business with Africa, and poor infrastructure within the African continent such as roads, railways, and seaports. Furthermore, there are many sociopolitical factors such as African governments not doing enough to promote SMEs. Internet connectivity in Africa also continues to lag behind other counterparts globally (ITC, 2015). However, online retail sales in Africa are expected to increase. The leading nationin retail sales on the continent is South Africa, where e-commerce revenues have grown at double-digit rates in recent years. Online shopping is also becoming popular in countries like Morocco, Nigeria and Kenya. The largest business-to-consumer online retailer in Africa is Jumia, which has over 3 million customers spread across the continent. Other popular shops include Kilimall in Kenya and Souq in Egypt. Multinationals such as Alibaba, Amazon and AliExpress are also expanding into the African market (ITC, 2015). Kenya Perspective The overall online shopping rate in Kenya is 23% and is currently lower than the overall online shopping rate which is 59%. The existing gap with other global economies shows that there is still a long way to go for Kenya. The main reasons for the gap include lack of trust, shipping costs, slow delivery, authenticity of products, fear of payment methods and lack of knowledge on how to place orders. Despite the gap with other developed economies, there is an increase in the use of social media platforms such as Facebook, Instagram and WhatsApp which contribute to at least 15% of online purchases. The most searched online shopping sites in the country are Jumia and Kilimall which account for 38% and 22% of all online shoppers respectively (The Star, 2017). The buying and selling of goods via the Internet is also increasing in Kenya. The e-commerce market is estimated to be worth $50 billion by 2018, up from $8 billion in 2013. Various online businesses are emerging in the country and more and more investors are funneling money into this sector (Branding Voice, 2017 ). ). Nigeria-based Jumia is Africa's largest online store with outlets in Egypt, Ivory Coast and Morocco, and has become the most popular online store in Kenya. The online retailer has a similar business model to Amazon by offering a different quantity of products to its consumers. The company launched in 2012 and has since expanded across Africa. The online shopping store also participates in the online shopping days like their foreign counterparts. In Kenya, Jumia organizes Black Friday which has turned out to be the largest shopping event in the country. In 2017, Jumia recorded nearly two million shoppers on the first day of the campaign (Money&Markets, 2017). For the first time in history, groceries emerged as a major attraction for Kenyan shoppers in 2017. The main products sold online were electronics, fashion items and household appliances. Companies have also started investing in technologies. For example, tours and travel agencies offer interactive chat sessions with 24-hour customer support. The moment a potential customer visits their website, they are able to initiate one-on-one communication with the website visitor to offer assistance. 1.2 Problem StatementKenya is the seventh most populous country in Africa with a population of over forty million people. In 2017, Kenya was considered a young country as approximately 61% of the population consisted of children aged 0 to 14 years or youth aged 15 to 24 years. The youth population also applies to the rest of the African continent, as the continent had approximately 226 million young people aged between 15 and 24 in 2015. Youth unemployment rates are therefore high in both Kenya and Africa, and young people represent most of the unemployed (Hall, 2017). Online businesses therefore represent a job creation opportunity for the next generation of young entrepreneurs who want to invest in a non-overcrowded area. The online marketing space is also still relatively new in Kenya and many.
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