Jumia: developments at the retailer

Date : 09 July 2020

Danielle Molloy-Vickers

Retail Analyst

We round up initiatives from the Nigerian ecommerce retailer, Jumia, as it looks to drive profitable sales growth.

Jumia opens logistics services to external clients in Kenya…

Jumia has opened its logistics services to external clients, including individuals and businesses. Shoppers in Kenya will have the option of dropping off their parcels at Jumia drop-off centres in Nairobi or have them collected from their locations. Jumia has also opened its technology and logistics up to third party deliveries, including next day delivery for major cities, and same day delivery in Nairobi.

Commenting on the move, Jumia Kenya CEO, Sam Chappatte, said, “Businesses across the country are re-examining their costs, especially during COVID-19. For many, logistics is a major cost driver and headache to manage. At the request of our partners, we are opening our logistics arm for B2B and B2C deliveries – with the hope that we can provide a better quality of service, at lower cost.

Our logistics network is a collaboration of dozens of logistics entrepreneurs across the country. Through this network we have access to thousands of bikes, vans, and hundreds of pick up stations. This move is good news for these partners – as it will drive more volume through our network and to them.”

…And is adding collection points in the country

Due to the recognised barrier of shoppers not knowing how to use ecommerce sites nor trusting them, Jumia has established collection points throughout Kenya. The stations are physical places where shoppers can learn how to use Jumia and place and collect orders. Collection points will be near shoppers and offer a more affordable way to shop, providing the lowest possible delivery fee. The service is currently available in Nairobi and Mombasa, where it operates over 200 collection points.

To become a collection point, a retailer must apply online to indicate their interest. Their prospective stores are required to have the capacity to handle a maximum of 50 packages, be in a secure location, have storage space, internet, internet access device (mobile phone, tablet) and a branding license. Jumia will aid the shop owners with training in ecommerce, customer service and bookkeeping.

Jumia Egypt launches interest-free instalments

Jumia has entered an agreement with Egypt’s largest banks to offer interest-free instalment services for consumers. The retailer will work with the National Bank of Egypt, Banque Misr, Bank Audi, and Mashreq Bank to offer interest-free instalments between six and 12 months. Shoppers can receive a 20% discount on products purchased with a Banque Misr or CIB credit card, and Vodafone Cash.

Jumia Food sees 30% MoM growth in Nigeria

At its eighth anniversary celebration, Jumia said the COVID-19 pandemic has had a positive impact on its on-demand food delivery service in the country. It has enjoyed a 30% rise in volume sales month-on-month since March. The pandemic has led to an increase in food deliveries to residential areas.

Commenting on the increase, Jumia Nigeria CEO, Massimiliano Spalazzi, said, “I found it very interesting because our customers usually purchase food to consume at their offices... During this period [since the lockdown] what we found is people cannot go back to the office. We saw a shift in requests and an increase in requests with food moving to where people reside.”

I think it has been an interesting challenge for us, obviously to move interests from the typical neighbourhood to ones we usually don’t serve within the day. But it has helped us better understand what customers need, their behaviour and how this behaviour will develop within the coming weeks.”