1.1 Introduction
E-commerce, also referred to as electronic commerce, is defined as the process of buying and selling goods or services over electronic systems such as the internet and other computer networks (Laudon & Traver, 2021). In Nigeria, the adoption of e-commerce has grown significantly over the past decade, driven by the increasing penetration of the internet, mobile technology, and social media platforms. Boutique owners, who largely operate small and medium-scale businesses, have the potential to benefit from e-commerce by leveraging digital platforms to advertise their products, reach new customers, and enhance sales revenue. However, the level of adoption and effective utilization of e-commerce among boutique owners is uneven due to differences in digital literacy, technical know-how, and access to reliable internet infrastructure (Oyelaran-Oyeyinka & Lal, 2006).
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitation of the study and Definition of terms.
1.2 Background of Study
E-commerce, or electronic commerce, emerged as a concept in the late 20th century with the advent of the internet and digital technologies that enabled businesses to conduct commercial transactions online. According to Laudon and Traver (2021), e-commerce started primarily as a means for large corporations to expand their market reach and reduce operational costs through digital platforms. Over time, the practice extended to small and medium-sized enterprises (SMEs), allowing them to reach wider markets and improve revenue streams.
In Nigeria, e-commerce began gaining attention in the early 2000s, coinciding with improvements in internet penetration, mobile technology, and digital infrastructure. Reported that early adopters of e-commerce in Nigeria were mainly large-scale businesses operating in urban centers, while small businesses, including boutiques, were slow to integrate digital strategies due to limited resources and lack of technical expertise (Oyelaran-Oyeyinka & Lal, 2006).
Boutique businesses, which focus on the sale of fashion items and accessories, have historically relied on face-to-face transactions, word-of-mouth marketing, and local market networks. However, stated that with the growth of digital marketplaces and social media platforms such as Instagram, Facebook, and WhatsApp, boutique owners are increasingly able to showcase products, communicate with customers, and process sales online (Chinomona & Sandada, 2013).
E-commerce has emerged as a transformative force in business operations worldwide, offering businesses the ability to reach wider markets, enhance customer engagement, and increase revenue generation (Laudon & Traver, 2021). According to Kollmann (2006), the adoption of e-commerce by small and medium-sized enterprises (SMEs) significantly influences their market reach and overall performance. This assertion underscores the importance of digital skills in navigating online business platforms effectively (Kollmann, 2006).
Boutique businesses, which are mostly small-scale retail enterprises, form a significant part of the informal sector in Nigeria. Reported that these businesses contribute substantially to employment generation and local economic development, especially in urban centers like Ilorin South (Chinomona & Sandada, 2013). Furthermore, some boutique owners who attempt to leverage e-commerce platforms still struggle due to inadequate training, weak internet infrastructure, and limited access to technical support. Stated that effective e-commerce adoption requires not only access to technology but also the development of relevant digital skills that enable businesses to optimize online sales channels and maintain sustainable growth (Chinomona & Sandada, 2013). On the other hand, owners who possess sufficient e-commerce skills are better positioned to manage online marketing campaigns, handle customer inquiries, and process electronic payments efficiently, leading to increased revenue and business expansion (Kollmann, 2006).
According to Laudon & Traver (2021), many studies contend that there is a positive relationship between the level of e-commerce competence and financial performance among SMEs. However, specific empirical evidence focusing on boutique owners in Ilorin South remains limited. Affirmed that understanding this relationship is crucial for guiding training programs, policy decisions, and strategic interventions aimed at empowering boutique operators to fully exploit digital opportunities for revenue growth (Laudon & Traver, 2021). This study is set against the backdrop of bridging the knowledge gap regarding the impact of e-commerce skills on revenue generation among boutique owners in Ilorin South.
1.3 Statement of Problems
Investigation revealed that many boutique owners in Ilorin South are yet to fully harness the potential of e-commerce due to limited knowledge and lack of digital skills. The absence of proper e-commerce skills is leading to inefficiencies in online marketing, digital payment systems, inventory management, and customer engagement.
On the other hand, some boutique owners who have adopted e-commerce strategies still experience challenges such as poor website management, inadequate social media presence, and weak online customer relationship management.
Furthermore, infrastructural issues such as unstable internet connectivity, lack of technical support, and insufficient training opportunities exacerbate the difficulties in applying e-commerce strategies effectively. It is against this backdrop that this study seeks to assess the impact of e-commerce skills on revenue generation among boutique owners in Ilorin South.
1.4 Aim and Objectives of Study
The aim of this study is to assess the impact of e-commerce skills on revenue generation among boutique owners in Ilorin South.
The specific objectives of the study are as follows:
- To identify the level of e-commerce skills possessed by boutique owners in Ilorin South.
- To examine the effect of e-commerce skills on the revenue generation of boutique businesses.
- To determine the challenges boutique owners face in applying e-commerce strategies.
- To evaluate the relationship between digital marketing, online payment systems, and sales performance among boutique owners.
- To provide recommendations for improving e-commerce skill adoption to enhance revenue generation.
1.5 Research Questions
Based on the objectives of the study, the following research questions have been formulated:
- What is the level of e-commerce skills possessed by boutique owners in Ilorin South?
- How do e-commerce skills affect the revenue generation of boutique businesses?
- What are the challenges faced by boutique owners in implementing e-commerce strategies?
- What is the relationship between digital marketing, online payment systems, and revenue performance among boutique owners?
- What strategies can be recommended to improve the adoption of e-commerce skills for better revenue generation?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: There is no significant relationship between e-commerce skills and revenue generation among boutique owners in Ilorin South.
- H1: There is a significant relationship between e-commerce skills and revenue generation among boutique owners in Ilorin South.
Hypothesis Two
- H0: E-commerce skills do not significantly influence revenue generation among boutique owners in Ilorin South.
- H1: E-commerce skills significantly influence revenue generation among boutique owners in Ilorin South.
1.7 Significance of Study
It is believed that at the completion of the study, the research will inform policymakers and training institutions on designing programs that will equip boutique owners with essential e-commerce skills. For policymakers and government agencies, the findings of this study will offer guidance on designing training programs, workshops, and policy interventions that support small business development and e-commerce adoption.
Furthermore, the study will contribute to academic knowledge by providing empirical evidence on the relationship between e-commerce skills and revenue generation in the context of small retail businesses in Nigeria.
Lastly, the research will contribute to academic knowledge on SMEs and digital entrepreneurship in Nigeria, offering data for future studies. Also, researchers and students will benefit from the findings as a reference point for further studies on SMEs, digital business adoption, and entrepreneurship in emerging economies.
1.8 Scope of Study
The scope of this research is focused on the impact of e-commerce skills on revenue generation among boutique owners in Ilorin South, Kwara State, Nigeria.
1.9 Limitations of the Study
Several limitations were encountered during the course of this study, which may have influenced the results and conclusions.
- Time Constraints: A study of this nature needs relatively long time during which information for accurate or at least near accurate inference could be drawn. The period of the study was short, time posed as constraints to the research.
- Financial Constraints: The research would have extended the survey to other area at the empirical level, but limitation as included cost of transportation to the source of material and the cost of time setting of the already completed work.
- Initial Cooperation Delay from Respondents: A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.
1.10 Definition of Terms
E-commerce Skills: The ability to effectively use digital tools, online marketing, social media, and electronic payment systems to conduct business transactions (Laudon & Traver, 2021).
Revenue Generation: The process of increasing business income through sales of products or services (Chinomona & Sandada, 2013).
Boutique Owners: Entrepreneurs who operate small-scale retail stores focused on fashion, clothing, or accessories (Oyelaran-Oyeyinka & Lal, 2006).
Digital Marketing: The use of online platforms and tools to promote products or services to a target audience (Kollmann, 2006).
…
