Ethiopia's social commerce return rate remains relatively low at 8.5%, reflecting growing consumer trust and improved seller practices. The sector's revenue has surged to USD 750 million, driven by increased smartphone adoption and widespread social media usage among urban populations. Average order values are modest at USD 35, indicating affordability and accessibility for most consumers, with millions engaging actively in social shopping.
The rise in mobile payment penetration to 65% has facilitated seamless transactions, boosting social commerce growth. With over four million active buyers, Ethiopia's digital marketplace is rapidly expanding, yet there is still potential for reducing return rates further through better product descriptions and customer service. As social commerce matures, businesses will focus on enhancing user experience and logistical efficiency.