Jumia (NYSE: JMIA) has announced the launch of its report dubbed “E-Commerce in Rural Areas”. The report highlights how online marketplaces can bring opportunities to underserved rural regions by providing access to millions of products and creating employment opportunities.
The report cited Beauty, Home (furniture, bedding, etc.), Phones, and TV as the leading categories currently demanded by rural customers in Kenya. Consumers mentioned Jumia’s competitive prices and product diversity as the main reasons for shopping online.
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“We are proud to bring a modern and convenient shopping experience to customers located in small Kenyan towns and to give them access to millions of products that are not available locally. Jumia’s development in peri-urban and rural areas of Kenya also shows our commitment to driving economic growth and improving lives through the Internet,” said Charles Ballard, CEO of Jumia Kenya.
The report further highlights the crucial role JForce – a countrywide network of over 25,000 independent sales agents – who drive awareness in local communities, inform customers about Jumia’s offers, and help them order on the platform. JForce agents are crucial in boosting e-commerce awareness in rural areas and fostering growth and brand adoption. The agents are their bosses and earn commissions based on their sales on the platform. They help rural consumers place online orders (which are then delivered within 2 to 4 days to local Pick-Up Stations where customers collect their orders).
“E-commerce enables all consumers to buy products at the same price whether they live in Nairobi, Meru, or Lodwar. Delivery costs have also decreased over the years; the average delivery cost to rural areas is now around Ksh 300, depending on the item’s size. Pick-Up Station deliveries have helped reduce prizes and minimize the environmental impact”.
Said Chris Nyaga, Head of Logistics, Jumia Kenya. He added,
“Eldoret, Nakuru, Kakamega, Kitale, and Kisumu are the areas showing the most promising consumer demand.”
Physically present across the country through more than 350 Pick-Up Stations (PUS), Jumia has developed its network of rural Pick-Up Stations to meet the needs of rural consumers. Its collaboration with over 45 local logistics partners ensures streamlined supply chain operations. It enables the company to offer competitive and timely delivery options to these rural areas.
The report highlights the company’s dedication to driving sustainable growth, empowering communities, job creation, and closing inequality gaps.
