Jumia, as a rare unicorn enterprise in Africa, has won the favor of sellers with its outstanding performance. It mainly covers South Africa, Egypt, Nigeria and other countries, becoming the leader in these markets. The uniqueness of Jumia can be seen in the advantages and disadvantages of entering the platform.
1. Jumia’s advantages.
First of all, Jumia’s advantages are obvious. The platform supports consolidated shipments, twice-monthly payment frequency, and no annual fees, entry fees and deposit policies, providing sellers with a flexible operating environment. The entry process is simple, and only requires a business license and a corporate business license. The improvement of the payment system also provides sellers with a more convenient transaction experience.
In terms of the market, the economic growth in Africa is significant. Last year, the per capita GDP of the three countries reached 30,000 US dollars per year, exceeding China’s 20,000 US dollars. Africa has 420 million Internet users, of which users aged 18-50 account for as high as 78%. Although the Internet penetration rate is low, Jumia, as the leader of African e-commerce, has occupied an important market share due to its huge user base.
2. Jumia’s disadvantages.
However, Jumia also has some disadvantages. First, the platform does not support individual registration, and the number of users is relatively small. The large gap between the rich and the poor and the underdeveloped telecommunications business are also one of the challenges facing Jumia. The imperfect local network makes it difficult for users to have a pleasant experience in online shopping, which is a direction that requires long-term efforts by the platform.
Compared with other similar platforms, Jumia’s advantage is that light-asset sellers can easily settle in and the requirements are relatively low. The active investment of Chinese sellers in this market has also laid the foundation for future development. Africa has an offline retail market of 67,000 consumers, but supply is still seriously lower than demand. The rise of the online market is crucial to meet the needs of local consumers.
Although Jumia has some disadvantages, such as slow logistics and delivery, resulting in a relatively long payment cycle, this cannot conceal its prospects for the Internet and e-commerce explosion in the African market in the next decade. The development of the platform will further drive Africa’s economic growth and prompt more sellers to introduce high-quality products to the global market in a more efficient way.
In general, as a leader in African e-commerce, Jumia has attracted the attention of many sellers. For sellers who want to expand their business, fully understanding the advantages and disadvantages of the Jumia platform and seizing market opportunities will be the key to achieving more business opportunities. I hope that with the continuous development of Jumia in the African market, it will bring more opportunities for success to more sellers.