Monday, January 17, 2022

Jumia reports increase in sale of Consumable items as buyer habits change

Jumia has recently published its first Africa e-commerce report sharing details gathered from its extensive consumer data to unpack the trends in online shopping witnessed throughout the pandemic. According to the report, more shoppers bought everyday consumable products as opposed to electronics.

The Fast-moving goods and beauty products experienced the most significant shift in shopping behaviour. They accounted for 57% of the total platform’s gross merchandise value. This is up from 44% in 2019.

Jumia says the shift is part of a broader economic transformation led by the continent’s young, urban and tech-savvy population.

The report also shows that Nairobi tops the list as the Kenyan city with the highest number of online deliveries followed by Mombasa and Kiambu. 

Jumia Kenya CEO Sam Chappate said: “Online grocery shopping has lagged other categories historically in Kenya. The pandemic has shifted consumer behavior. Kenyans are now increasingly considering online shopping for their everyday needs – seeking convenience and competitive prices. This is an important shift for the e-commerce industry because it allows us to become a more relevant service & bigger part of everyday life for Kenyans”

Jumia reports increase in sale of  Consumable items as buyer habits change

Jumia has extended retail services to rural areas in Kenya since the pandemic first hit in March 2020. It has since doubled the number of pick-up stations countrywide to more than 1,000 today, offering convenience and a 30% reduction in shipping fees. This is a welcome move to consumers, especially with the shift to everyday essentials.

“We believe our large range of products and competitive pricing is relevant for consumers in and outside Nairobi. By expanding our pick-up station network and working with local entrepreneurs, we are already seeing an acceleration of e-commerce penetration upcountry,” said Chappatte.

According to the United Nations Conference on Trade and Development (UNCTAD), internet businesses in Africa, including e-commerce which sits at the heart of the digital economy, could add US $180 billion to the continent’s GDP by 2025. 

“COVID-19 led to a surge in the use of digital solutions, including e-commerce. This was particularly demonstrated with domestic sales rather than cross-border e-commerce. Food delivery, essentials and pharmaceutical goods were among the top-performing online shopping categories,” said Torbjorn Fredriksson, Head of E-commerce and Digital economy, UNCTAD.

The report was compiled in collaboration with UNCTAD, IFC, and Mastercard.

6,091FansLike
2,878FollowersFollow
16,100SubscribersSubscribe

Leave a Reply

Featuredhttp://techishkenya.com
Techish focuses mostly on opinions on Tech, Business, Entrepreneurship and Startups. Reach out to us at any time mail@tech-ish.com if you have anything you want to have featured on the site.

More to read:

Fuel prices remain unchanged between January & February 2022

EPRA has announced that fuel prices in Kenya will remain unchanged between January and 14th February 2022.

Huawei plans to launch 3 products in Kenya in Q1 2022

Huawei is bringing in a phone, a tablet and a smartwatch to the Kenyan market in the first quarter of 2022.

Afrikrea rebrands to ANKA after successful $6.2 million Pre-Series A Round

The e-commerce platform Afrikrea is now rebranding to “ANKA”, its all-in-one solution for selling anywhere and hipping globally

Equity expands to Insurance Sector with launch of ‘Equity Life Assurance’

The insurance sector in Kenya is characterised by low penetration levels, currently estimated at 2.4% attributed to a number of factors

Banks, who benefit most from Free M-Pesa transfers, want CBK to re-introduce charges

The Kenya Bankers Association (KBA) will be lobbying to have the Central Bank of Kenya (CBK) re-introduce transactions between Banks and Mobile Money wallets in 2022.

Airtel joins Telkom in support of cheaper rates; Safaricom remains hesitant

Airtel argues that CA’s reduction takes into consideration the 7 year delay and that it is fully aligned with the interests of the consumer.