Improving Platform Efficiency: Evidence from a large e-commerce

Governments and international institutions are actively investing in programs and initiatives to build the foundation for a thriving digital economy in developing countries. Central to these efforts is the belief that embracing digital solutions can drive economic growth. A key technology in this space are e-commerce platforms, which have the potential to boost trade across Africa. However, despite their rapid expansion, there is limited empirical evidence on the role these platforms play in facilitating trade, promoting firm growth, and enhancing customer welfare. The goal of this work is to understand the role e-commerce platforms play and identify ways to improve their effectiveness. To achieve this, the research team partnered with a major e-commerce platform in Africa to study an A/B test they ran examining the impact of enhancing the platform’s effectiveness.