Jumia, the African e-commerce platform, has transformed how people shop on the continent and created job opportunities for many at the same time.
Founded in Nigeria in 2012, Jumia has over the years expanded its footprint to North Africa, East Africa, and West Africa, with the main goal of bringing the best of e-commerce to local markets.
A major part of Jumia’s strategy has been to deliver a variety of locally made products. This approach not only supports local brands but also ensures that consumers can find familiar products at competitive prices.
Speaking on The TechTrends Podcast to discuss the company’s journey and state of e-commerce in Africa, Jumia’s East African Regional CEO Vinod Goel, l highlighted several initiatives that have helped Jumia build trust with consumers. These include Pay-on-delivery options, allowing customers to inspect goods before payment, and direct partnerships with legitimate brands to ensure authenticity
He also noted that the company is committed to accurate deliveries, ensuring customers receive exactly what they ordered
Acknowledging the diversity of different markets, Vinod said Jumia tailors its approach to each region. He highlighted three macro factors that are crucial for running an e-commerce smoothly. They include smartphone penetration, digital payment accessibility, and internet access.
To cater to different market segments, Jumia introduced Jumia Force, which consists of a network of freelancers who assist customers in placing orders and more, essentially bringing e-commerce directly to the people.
Vinod also highlighted the role Jumia has played in empowering local entrepreneurs, enabling them to reach wider audiences.
He noted that e-commerce is a powerful equaliser, increasing product supply and putting downward pressure on prices, thus contributing to inflation control.
He urged the governments to foster an environment where e-commerce can thrive through supportive policies and by encouraging SMEs to formalise operations, a move that could boost economic growth.
Future of e-commerce
According to Vinob, e-commerce will continue to grow as the younger generation is at the forefront of embracing online purchases. He urged young people to work on platforms like Jumia, which can help them run their business profitably.
“We are underestimating the impact of democratizing industrialization. ‘’Vinod Goel noted.
He added that Jumia is gearing up for major innovations, including increasing product offerings from original and international brands (targeting 60%) and opening its logistics infrastructure to third parties. With Africa’s youth leading the charge in embracing digital platforms, the future of e-commerce in Africa looks promising. Platforms like Jumia are not only shaping how Africa shops but are also empowering a generation of digital entrepreneurs in the continent.
You can listen to the TechTrends episode here.
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