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eBay Gives U.S. Sellers Access To African Buyers With MallForAfrica.com Deal

eBay Gives U.S. Sellers Access To African Buyers With MallForAfrica.com Deal

US based online market platform, eBay Inc., has partnered with online shopping startup MallsforAfrica.com to give its sellers access to Africa’s biggest consumer market from July 2016, Tech Crunch reported.

MallforAfrica.com was launched in 2010 by Nigerian Chris Folayan, with the aim of enabling African consumers to shop from western retailers. It claims to offer access to more than 8.5 billion items through 100 online stores including partnerships with Amazon, BestBuy, Macys and Bloomingdale.

Fernando Saiz, eBay’s business development director, said the partnership with MallsforAfrica.com “will enable inventory from all eBay U.S. individual and business sellers with a 300+ star rating to be purchased by buyers in Nigeria and Kenya.”

Sales on the Ebay.MallforAfrica.com site will begin “first in Nigeria, then Kenya, followed by Ghana, all in 2016,” Folayan said, adding that other African countries will follow.

“We are creating a unique ‘eBay Powered by MallforAfrica’ app to run on all our platforms. When buyers in Africa shop with this app, they’ll be able to shop on eBay, buy what they want, check out, and pay through MallforAfrica,” he added.

The new eBay partnership, MallforAfrica’s platform will handle logistics.

The African portal will also handle payments for eBay products, accepting both local currency and digital payments from fintech partners Paga  in Nigeria and M-Pesa in Kenya, which will go back to eBay vendors in dollars.

“The experience will be seamless for a U.S. based seller and will feel as though they are selling to a US buyer,” Saiz said.

E-commerce is growing fast in sub-Saharan Africa’s sturdier economies and fastest of all in South Africa and Nigeria, where retail resembles that of South East Asian countries with its more developed e-commerce sector.

The Internet’s contribution to Africa’s gross domestic product stood at 1.1 percent in 2013, much lower than other emerging markets. But this could rise to 10 percent, or $300 billion, by 2025, according to a report by consultants McKinsey’s & Company.

There has been increased investment in e-commerce startups on the continent.

African consumers are increasingly searching online platforms with commercial intent, including querying prices of goods, and researching where products or services can be purchased.

According to research by Google South Africa, there was an increase of 49 percent in query volumes in Nigeria, 37 percent in South Africa and 33 percent in Kenya, during 2014.