Adoption of Third-Party E-Commerce Platforms by Small Retail Businesses in Nigeria: Benefits, Barriers, and Business Implications

Abstract

This empirical paper investigates the adoption of third-party electronic commerce (e-commerce) platforms by small and medium-sized enterprises (SMEs) in Nigeria. It examines the motivations for adoption, perceived benefits, and barriers faced by retail businesses in the e-commerce landscape. A qualitative research design was employed, guided by an abductive approach, which allowed for iterative movement between theory and empirical findings. Data were collected through structured questionnaires administered to merchants with storefronts on Nigeria’s major third-party e-commerce platforms. Findings reveal that e-commerce adoption among Nigerian SMEs is relatively low compared to adoption rates in Asia and Western countries. The decision to adopt e-commerce platforms is largely influenced by the digital literacy and awareness level of business owners and managers. Key benefits include increased market access, improved operational efficiency, and enhanced information exchange. The most significant barriers are lack of awareness and limited technical know-how. A notable advantage of using third-party platforms is the relief it provides merchants from direct marketing burdens, allowing them to concentrate on sourcing and managing products. This study contributes original insights into e-commerce adoption in a developing economy context and provides practical implications for SME operators, platform developers, and policymakers. It also lays a foundation for future comparative studies on digital commerce adoption.