Online shopping is gaining traction globally, but delivery fees often deter customers from completing purchases. According to a report, $4 trillion worth of items were abandoned in shopping carts worldwide in 2014, with 58% of shoppers citing unexpected delivery costs as the reason. In Africa, Jumia, a leading e-commerce platform, aims to address this challenge. In June 2019, the company launched Jumia Prime, a subscription service offering free delivery to users. The initiative, rolled out during Jumia’s seventh anniversary, seeks to reduce delivery costs for frequent customers while encouraging occasional and first-time shoppers to become regular users.
Features of Jumia Prime
Currently in its pilot phase, Jumia Prime is available in Lagos and Abuja, Nigeria, with two subscription plans:
Lagos: ₦1,999 for one month and ₦4,999 for three months.
Abuja: ₦2,499 for one month and ₦6,499 for three months.
A six-month plan has recently been introduced in Lagos for ₦7,999.
Subscribers can place up to 50 orders per month and use a maximum of three delivery addresses. According to Apoorva Kumar, Jumia’s Senior Vice President for Logistics, Jumia Prime aims to enhance the delivery experience and save customers money on shipping fees.
Expanding Reach
Despite heavy investments in African e-commerce, online sales accounted for less than 1% of retail sales in 2018. Jumia aims to change this narrative by introducing services like Jumia Prime, which has shown promising results during its pilot phase. The company plans to expand the service to more states in Nigeria and eventually to other African countries.
Rather than entering new markets, Jumia is focusing on strengthening its presence in the 14 countries it currently operates in. This includes extending delivery services to remote regions and introducing innovations like Jumia Pay, its online payment solution, and the Jumia One app, which integrates various financial and informational services.
Leveraging Logistics Efficiency
Jumia Prime leverages the company’s well-established logistics network, Jumia Services, which uses both proprietary tools and external courier partnerships. In Nigeria, over 100 logistics partners collaborate with Jumia to deliver goods efficiently, even in remote areas. Technologies such as GPS tracking, automated notifications, and delivery apps for drivers help streamline operations and overcome infrastructure challenges.
By utilizing its logistics strengths and rolling out user-friendly innovations, Jumia aims to enhance customer satisfaction, grow its user base, and solidify its position as a leader in African e-commerce.
