Assessing The Effects Of E-commerce On Second Hand Vehicle Importation Business In Nairobi, Kenya

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Second hand vehicle business is a major sector in Nairobi, Kenya which contributes 8% of total GDP. The sector is dominated by small and medium enterprises. In the recent past, the sector has recorded significant growth and this is particularly due to wide adoption of Ecommerce technologies. Despite the growth, the sector is experiencing several challenges that threaten to reverse the gains made. Through Ecommerce, individuals running small and medium enterprises have direct connections with overseas dealers and hence affecting the sales of the importers. The traditional ways of selling cars have been on a slow trend thus pushing second car dealers with yards out of the market resulting to closing down of their business premises. This study aimed at establishing and assessing the effects of adoption of e-commerce on second hand car business in Nairobi, Kenya with a goal of optimizing the use of e-commerce technology in the sector. This study adopted a quantitative approach because the design is concerned with finding out who, what, where, when and how much the investigated factor is influenced. Empirical evidence showed that there was an influence of e-commerce on second hand vehicle importation business both at international and regionally. Both quantitative and inferential statistics were employed to analyse the collected data. The study found that second hand motor vehicle sellers used online services such as websites as their mode of e-commerce to transact with oversees sellers of second hand cars.

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