Jumia, as a well-known e-commerce platform, has been seeking to provide better services and higher efficiency to meet the needs of sellers and consumers. Recently, Jumia introduced a new product pricing mechanism, which aims to simplify the operation process of sellers, improve sales efficiency, and also make product prices more competitive. This article will introduce this new pricing mechanism in detail and how it is different from the original pricing mechanism.
1. Jumia product pricing logic.
First, let’s understand how the new pricing mechanism works. The core idea of the new pricing mechanism is to exclude international shipping costs from the selling price and only include the following factors: product cost, profit, return rate cost, and commission. This means that sellers no longer need to consider the calculation of international shipping costs. This part will be automatically determined by the system based on different categories of products and included in the order when the user places an order.
2. The difference between the new pricing mechanism and the original pricing mechanism.
Below, we will compare the differences between the new pricing mechanism and the original pricing mechanism:
Original pricing mechanism: Product pricing includes product cost, profit, domestic shipping costs, return rate costs, commissions, and international shipping costs.
New pricing mechanism: Product pricing includes product cost, profit, domestic shipping cost, return rate cost and commission.
The new pricing mechanism eliminates the step of sellers calculating international shipping costs, which will greatly reduce the burden on sellers. In the original pricing mechanism, the calculation of international shipping costs is usually determined based on the larger of the actual weight and volumetric weight. For many sellers, especially novice sellers, this calculation process may become complicated and difficult. However, under the new pricing mechanism, this problem will no longer exist.
3. Changes in international shipping costs.
Another important change in the new pricing mechanism is the way international shipping costs are handled. After optimizing the entire system, international shipping costs will be automatically calculated by the system and automatically added to the order when the user places an order based on the different categories of the product. This means that sellers can focus more on the cost and profit of the product when running their stores, without having to worry about international shipping costs.
4. Advice to sellers.
Under the new pricing mechanism, there are some important tips that need to be conveyed to sellers:
The volumetric weight or actual weight of the package needs to be less than 1.5KG. This threshold is derived from the system’s big data analysis and applies to almost all categories of self-delivered orders. Sellers should keep this threshold in mind and consider it comprehensively when evaluating the products on sale.
For example, if the actual weight of a product is 0.8KG, when a user purchases one such product, the seller only needs to pack it normally and affix the label. But if the user purchases two such products at a time, the total weight of the package is 1.6KG, which exceeds the threshold of 1.5KG. It is recommended that the seller split it into two packages, generate two labels through the background, and then send them separately.
For some products, both the actual weight and the volume weight exceed the threshold of 1.5KG. For these products, it is recommended that sellers directly use the FBJ (Fulfillment by Jumia) overseas warehouse model to sell them. At present, Jumia has opened the FBJ overseas warehouse model in 9 international sites, and sellers can more conveniently choose this model to provide faster and more reliable services.
In short, Jumia’s new pricing mechanism is designed to provide sellers with a more simplified business process, allowing them to focus more on the core aspects of the product, such as cost and profit. This change will also help sellers adjust prices more easily and attract more consumers, thereby increasing product sales and conversion rates. At the same time, the new pricing mechanism will also help sellers understand the bill more clearly, no longer including international logistics fees, making the entire business process more transparent and efficient. Therefore, sellers should actively adapt to this new mechanism in order to better take advantage of the Jumia platform and achieve greater business success.