Determinants of E-Commerce: A Case of Fashion Wears and Cosmetics E-Businesses in Nigeria

Abstract

The growth of communication technology, modern technology, and the internet, electronic commerce (e-commerce) has brushed up through all walks of the world with an irrevocable trend. This has promoted the market in a great range of services or products, either digital or physical. However, information asymmetry and trust has played a significant role in customers’ tenacity in carrying out transactions with online firms. This study assessed the determinants of e-commerce in the fashion wear, cosmetics markets, then determined the consumer behavior and preferences about the online and offline channels using questionnaire to elicit information from the respondents. Data obtained were analyzed using descriptive, inferential statistics, and Logistic regression analysis. The results of the analysis showed that majority of the respondents (43.3%) surveyed would not purchase makeup/perfume, fashion wears, and skin and body care products online because of Information Asymmetry and as a result of inability to smell, touch or test. These factors contributed to the level of adoption of e-commerce for makeup/perfume, fashion wears, and skin and body care products in Nigeria. Finally, it was recommended that a third-party insurance policy should be enacted that protect the customer’s right against Information Asymmetry by the e-commerce vendors.