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Home Company & Business

AI drives new competition in Nigeria’s online retail sector-DHL survey

Nigeria ranks fourth globally in AI-powered online shopping

by Onome Amuge
July 8, 2026
in Company & Business
AI drives new competition in Nigeria's online retail sector-DHL survey

Artificial intelligence is rapidly transforming how Nigerians shop online, with consumers increasingly relying on AI-powered tools to compare products, discover deals and make purchasing decisions, forcing retailers to rethink how they compete in one of Africa’s fastest-growing e-commerce markets.

New findings from the DHL eCommerce Trends Report 2026 show Nigeria emerging as one of the world’s fastest adopters of AI-enabled shopping, with 46 percent of online shoppers already using AI chat tools during the purchasing process. The country ranks fourth globally behind India, the United Arab Emirates and China.

The report, based on surveys of 29,000 consumers and 5,800 e-commerce businesses across 29 countries, indicates the next competitive battleground for retailers will extend beyond price to include artificial intelligence, delivery performance and customer trust.

Businesses are already responding. According to the report, 88 percent of Nigerian e-commerce companies have integrated artificial intelligence into their operations, while 94 percent expect AI adoption to increase further over the next five years.

The development comes as generative AI moves beyond customer support to influence product recommendations, price comparisons and purchasing decisions, potentially changing how consumers interact with online retailers.

Globally, almost one-third of shoppers say they would be comfortable allowing AI to make purchasing decisions on their behalf within five years. In Sub-Saharan Africa, that figure rises to 56 percent, the highest of any region surveyed.

The findings show retailers may increasingly compete for visibility not only with consumers but also with AI systems that recommend products based on price, availability, delivery speed and customer reviews.

Social media has also become a dominant sales channel in Nigeria, reinforcing the country’s position as one of Africa’s most digitally engaged consumer markets.

According to the report, 86 percent of Nigerian online shoppers purchase through Facebook, significantly higher than the global average of 63 percent. Instagram and TikTok also outperform international trends, with 64 percent and 56 percent of Nigerian consumers respectively making purchases through the platforms.

Traditional online marketplaces remain central to digital commerce, with Jumia maintaining its position as the country’s leading marketplace, used by 84 percent of shoppers and 83 percent of businesses surveyed.

For logistics providers, the report highlights delivery experience as an increasingly important competitive differentiator rather than simply the final stage of a transaction.

Nearly seven in ten global consumers say they would abandon an online purchase if they do not trust the delivery and returns provider or cannot access their preferred delivery options at checkout.

Although home delivery remains the preferred fulfilment option for 78 percent of Nigerian shoppers, return channels are becoming increasingly diversified. More than half of consumers now return purchases through parcel shops or convenience stores, while home collection and parcel lockers are also gaining traction.

The report also points to a growing willingness among Nigerian businesses to invest in premium fulfilment services. 83 percent already offer paid delivery and returns subscription programmes, substantially above the global average of 53 percent.

Muyiwa Adeseyoju, country manager of DHL Express Nigeria, said the country’s digital economy continues to evolve rapidly as consumers demand greater convenience, flexibility and reliability.

“Shoppers and businesses are adapting quickly to new ways of buying and selling online, and expectations are rising just as fast. For businesses, this means delivery, trust and flexibility are no longer add-ons. They are central to customer experience,” he said.

Beyond technology, sustainability is also becoming a commercial driver of purchasing behaviour.

The report identifies Nigeria among the markets leading the transition towards circular e-commerce, where consumers increasingly buy and sell second-hand goods online. Across Sub-Saharan Africa, 91 percent of consumers describe themselves as sustainable shoppers, the highest proportion of any region covered in the survey.

Globally, more than half of consumers have already sold goods through online marketplaces, while almost half say they purchase refurbished or second-hand products primarily for environmental reasons.

Pablo Ciano, chief executive of DHL eCommerce, said artificial intelligence is fundamentally changing how retailers understand consumer demand.

“The ability to understand and respond to customer needs has always defined success, but AI is now redefining that advantage at hyperspeed,” he said.

 

Onome Amuge

Onome Amuge serves as online editor of Business A.M, bringing over a decade of journalism experience as a content writer and business news reporter specialising in analytical and engaging reporting. You can reach him via Facebook ,X and  LinkedIn

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