NYSE-listed e-commerce platform Jumia skilled a shift in buying habits throughout its markets in Africa final yr, as extra consumers purchased on a regular basis merchandise as against electronics.
Shopping for necessities such as foodstuff, vogue and sweetness merchandise, noticed Jumia’s whole sales worth of Fast-Moving Consumer Goods develop by 13 share factors final yr from 44% in 2019, in response to the newly launched Jumia Africa E-commerce Index 2021 report.
The Jumia report attributed the shift to stay-at-home restrictions that fueled the necessity for on-line buying as properly as the youthful inhabitants and the growing smartphone and web penetration throughout the continent. Smartphones contributed 75% of the visitors to the e-commerce website.
“By providing consumers with access to essential food and services, we have seen a shift to essential related products from phones and electronics. This goes to show how Covid-19 also reinforced the relevance of e-commerce in the communities we serve,” Jumia Group’s head of communication and public relations, Abdesslam Benzitouni advised W3Techy.
Jumia stated that extra sellers signed as much as Jumia Mall – a platform for official manufacturers inside the principle website – growing the buying choices and offering all kinds of merchandise. Jumia is at the moment the most important e-commerce platform in Africa, main lots of others together with Chinese-owned Kilimall, Nigeria’s Marketplace Africa and South Africa’s Bidorbuy.
“The brands (on Jumia Mall) know e-commerce is the future. Having them on Jumia means that consumers have access to their products, and that brands are within their reach. Different sellers on the platform also means that we create transparency and competition between brands.”
The report, ready in partnership with the United Nations Conference on Trade and Development, International Finance Corporation, and Mastercard, additionally confirmed that 28 million orders have been made on the platform final yr. Lagos, Cairo and Nairobi cities accounted for probably the most orders by quantity, respectively.
About 35% of orders made by means of Jumia have been paid utilizing the corporate’s finance arm, Jumia Pay, an app that permits prospects to pay utility payments and make orders with out leaving the corporate’s platforms. Popularity of the Jumia model additionally grew in all its markets with Uganda, Senegal and Tunisia experiencing the best progress.
Jumia attributed the expansion at the moment occurring throughout the continent’s e-commerce sector to the growing, albeit sluggish, penetration of the web. Across sub-Saharan Africa 303 million individuals, about 28% of the inhabitants, are linked to the cellular web in response to the 2021 GSMA cellular financial system report. This is predicted to develop to about 40% of the inhabitants by 2025, providing a much bigger market to internet-based companies like Jumia. But e-commerce uptake in Africa stays low, in response to a current International Trade Centre (ITC) report, with solely 10 international locations accounting for 94% of on-line enterprise. Nigeria, South Africa and Kenya accounted for many on-line sales in sub-Saharan Africa.
“…the digital and economic infrastructure in Africa greatly affects e-commerce and helps explain why the online economy works better in some countries than in others,” stated the ITC report.
“Furthermore, more than half of the people in 60% of African countries live in rural areas. Internet connectivity tends to be poor in these areas, which are also far from distribution centers — meaning that delivery services for goods are either poor, non-existent or costly. All of this creates sizable obstacles for e-commerce,” it stated.
When in comparison with cities, rural areas accounted for 22% of the orders lodged on the Jumia website, which Benzitouni attributed to the e-commerce’s rising logistics community. He stated that Jumia has during the last 9 years constructed a logistics community that targets to make it attainable for individuals in distant areas to buy on its website.
Jumia plans to make use of its logistics community to faucet rural areas – which the agency says has seen a powerful demand for its companies in these areas. The e-commerce platform opened up its logistics market to 3rd events, a spot that was beforehand solely utilized by meals distributors and for e-commerce.
It now has 300 logistics companions and 1,600 pick-up stations unfold throughout its 11 markets in Africa, together with Algeria, Senegal, Tunisia, Uganda, South Africa, Nigeria and Morocco.
By final yr Jumia had about 110,000 annual sellers and 6.8 million lively prospects, a small quantity when in comparison with the continent’s inhabitants. The progress of e-commerce throughout the continent, the ITC report stated, is hampered by the shortage of cross-border alternatives as most platforms function inside nationwide borders. It stated that the chance exists for a market that may have a major pan-African presence.