Jumia platform is an e-commerce platform. For merchants, the main expenses include platform commission, freight, service fee, etc. Let’s take a closer look at the main expenses of the jumia platform.
I. Commission
1) The commission for electronic goods is relatively low, and it is deducted at 5%.
2) Categories such as clothing are basically deducted at 10%.
3) The minimum commission in Nigeria is one dollar. In other words, goods with a commission of less than one dollar are still deducted at one dollar. Therefore, for low-priced and drainage goods merchants, everyone needs to pay attention to this. Other sites do not have such regulations.
II. Freight + customs clearance fee + VAT fee
1) Freight: Generally, the calculation of freight is the larger of volume weight and net weight.
For example, the net weight of a pair of shoes is 1.2kg and the volume weight is 2.1kg. 2.1kg>1.2kg, when calculating the freight, the platform calculates the freight as 2.1 kg.
Weight calculation method:
Calculation formula for Nigeria and Kenya: Volume weight = (length (cm) * width (cm) * height (cm))
Egypt, Morocco, Cote d’Ivoire, Ghana: Volume weight = (length (cm) * width (cm) * height (cm)) / 5000
2) Customs clearance fee: The platform usually uses the net weight of the goods to calculate the customs clearance fee of the product.
3) VAT: Tariff, now only Cote d’Ivoire must levy 18% VAT. Other sites do not have this fee.
Note: The minimum charge weight is 10g, and there is no larger net weight and size limit
3. Exchange rate
Due to the low credit of African countries’ currencies, the range of changes is prone to large fluctuations. Since the jumia platform adopts a fixed exchange rate, it helps to protect the rights and interests of merchants. If the platform’s rate changes, the platform will contact the merchant in a timely manner in the announcement.
4. Other miscellaneous fees
Knock on the blackboard! In addition to the known costs of the above platforms, there are some costs that merchants tend to ignore.
1) Return fee: The overall return fee of the jumia platform is more than 2%, and the return fee of the Egyptian station is relatively high. It is recommended that merchants calculate it to be more than 10%. In order to prevent losses in the later stage. It is recommended that merchants make adjustments according to the specific circumstances of their own stores.
2) Asset withdrawal service fee: The withdrawal service fee is generally around 1.2%, not more than 2%. It depends on the account status.
3) Failed shipments, midway cancellation of orders, platform fines, etc. will increase additional operating costs, which merchants can also consider when calculating costs.
4) For merchants who have done overseas warehouse FBJ, storage fees and operation fees for each order must also be calculated. For merchants who go to the cabinet, there are also unloading fees and other fees.
In fact, the losses of most merchants are mainly concentrated in other miscellaneous expenses in this part. The specific situation of each merchant may vary depending on the operating conditions, product quality, classification, etc. Merchants can make adjustments based on payment and store operations.