Before considering opening a store on the Jumia platform, it is crucial to understand the platform’s fee structure and payment methods. This article will break down the fees of the Jumia platform and answer some common questions, such as whether the platform has other fees, and explore payment methods and commission settlement.
I. Overview of Jumia Platform Fees
The Jumia platform is relatively simple in terms of fees, only involving commission fees, and no monthly fees.
Commission Fees:
The commission for electronic products is 5%.
The commission for clothing and other categories is 10%.
Jumia Nigeria has a minimum commission standard, that is, a commission of at least $1 per order, even if the commission for the product is less than $1, it will be calculated as $1.
II. FAQ
How do sellers receive payments from consumers? What payment methods are used for settlement?
The Jumia platform requires international sellers to accept prepaid payment methods, that is, consumers in African countries must first pay Jumia, and Jumia will then settle with sellers in US dollars. International sellers use Payoneer as a payment method. Jumia will settle payments twice a month, with the payment made when the order is successfully delivered to the consumer (Delivered).
How do sellers calculate the exchange rate in the face of exchange rate fluctuations in African countries?
The Jumia platform uses a fixed exchange rate, which is currently set at 1 US dollar equal to 370 naira (Nigerian currency). The monthly fixed exchange rate will be clearly displayed in the bill, and sellers need to adjust product prices in a timely manner according to the changing fixed exchange rate. Using a fixed exchange rate can reduce sellers’ losses caused by excessive exchange rate fluctuations.
How does the Jumia platform charge storage fees for overseas warehouses?
For international sellers, the Jumia platform provides free support for the first month’s FBJ (Fulfillment By Jumia) storage service fees, and there is no need to pay storage fees and delivery fees. Subsequently, the storage fee is charged at 200 naira per product (pcs) per month (Naira is the currency of Nigeria, and the current exchange rate is 1 US dollar = 370 naira). New merchants need to operate on the platform for a period of time before they can apply for FBJ services, because Jumia needs to comprehensively consider the sales of new merchants and select hot-selling products that need to adopt FBJ services.
How can sellers view the details of payment collection?
Sellers can view and export payment details under “Setting – Account Statements” in the Seller Center backend of the Jumia platform. Detailed information on settlement payments can be viewed according to the “Payment Guideline”.
When choosing the Jumia platform to open a store, understanding the fee structure is an important factor that sellers must consider. The Jumia platform only charges commission fees and does not require additional monthly fees. The settlement of fees is deducted directly from the seller’s sales revenue. This simple fee structure enables sellers to better control and manage their business and makes the store opening process smoother and more transparent.