Jumia, a formerly Rocket Internet and MTN-owned ecommerce retailer with various operations across Africa has scrapped its international shipping fees on Jumia Global purchases in Kenya in a move to woo more customers.
The NYSE listed firm says the move is part of its continued to revolutionize ecommerce in the country by scrapping the international shipping fees for customers who shop for Jumia Global items.
With the deal customers will enjoy free international delivery, which means that the customer pays the local delivery fee, but the international admin fee is waived.
“We will continue to invest in consumer experience as we thrive to grow the E commerce industry. The service offers customers the ability to buy hassle free, and with free international delivery” Jumia MD, Sam Chapatte.
This is a bold statement and will be a strong incentive for online shoppers, with no minimum order amounts, customers can shop for products across all categories on both the Jumia website and jumia app.
Jumia Global is a service a service allowing almost everyone become an importer. It’s a service similar to AliExpress which allows Kenyan shoppers to buy from Chinese manufacturers or retailers. Jumia Global allows users to buy and have an item shipped from overseas retailers. Most of this items are marked Jumia Global and are delivered a month after order confirmation. Jumia Global items require prepayment and their return is accepted only when the item has a defect.
Jumia Global competes Mall for Africa and the recently launched DHL eShop Africa which links customers in Africa to over 200 online overseas stores. To succeed, Jumia Global needed to stand out, the free shipping costs will greatly reduce prices of its items and give it an upper hand over the rest of the pack.
We are yet to compare prices of items under Jumia Global and Mall for Africa but the shipping prices will definitely lower Jumia’s market price and hence attract more shoppers for Jumia to build the market share it really needs in Kenya and across Africa before it turns profitable.
Apart from scrapping shipping fees, Jumia would do so well if it adds more international suppliers on its Jumia Global platform to have shoppers visit its international competitor Amazon among others. MallforAfrica’s biggest advantage is that it allows shoppers to purchase an item directly from USA and UK e-commerce sites via a simple browser extension. Because Mall for Africa also allows local and regional store owners to sell items through its platform directly, Jumia will have to compete not only on price but also delivery time and quality of goods to stand out. These are developments Jumia is likely to make now that it has gone public!