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Thursday, February 27, 2020

Jumia gives 50pc discount on commissions of locally manufactured goods

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Jumia Commission: Kenya’s leading online retailer Jumia Kenya has announced that it will be giving 50 per cent off commission for locally manufactured goods.

This was revealed by Jumia Kenya’s managing director Sam Chappatte during the an e-commerce forum that was hosted by the Kenya Association of Manufacturers (KAM) in partnership with Jumia. “Jumia offers 50 per cent discount on commission of sales through for locally manufactured products,” he said. “Jumia gives an incentive to Kenyan manufacturers and this is due to the fast growing sales channel available online.”

The forum sought to highlight opportunities for SMEs to gain access to global markets, gain new customers and demonstrate the importance of reinventing their business models to align with changing technologies.

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Mr. Chappatte also revealed that Jumia is currently planning to open hubs outside Nairobi where small and medium businesses can sell their products and services. Currently, according to KAM, Kenya has about 7.9 million small and medium enterprises. About 60 per cent of these businesses are in the service sector. unfortunately, about 400,000 SMEs fail every year.

Jumia Kenya, which runs online brands such as Jumia Deals, Jumia Jobs, Jumia Food, Jumia Travel, and Jumia House, has established itself as the leading e-commerce firm not only in Kenya but in the African continent as well. The online retailer, which also operates in 22 other African countries, recorded 550 million visits across Africa in 2017. The number of products on its brands grew to 5 million from just 50,000 recorded in 2012.

In Kenya, over 15,000 companies are currently selling through Jumia. This customer preference for Jumia cannot be said to be so far-fetched, says Nairobi-based economist Elias Muthee. “The online retail space in Kenya is largely unexploited, and the company is expected to grow its revenue base due to its constant evolution and product innovations,” he says.

This is echoed by Andrew Mutuma, Managing Director DHL Express. “E-commerce presents an opportunity for economic growth in the African continent and inter-connectivity is an important element in this,” he says.

Mr. Chappate also said that at one per cent of sales, the online African market space holds the key to future retail trading. “1 per cent of purchases are done online in Africa while its at 20 per cent in China. The market is huge and untapped here,” he said.

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