Detailed explanation of the main costs of the Jumia platform

The Jumia platform is an e-commerce platform. For merchants, the main expenses include platform commissions, shipping costs, service fees, etc. This article will combine the content of the two articles to introduce in detail the specific composition and calculation methods of these fees.

1. Jumia’s commission fees

The Jumia platform mainly charges commission fees and does not charge platform fees, monthly fees or annual fees. Commission rates vary depending on product category:

• Electronic products: The commission rate is 5%.
• Apparel and other categories: Commission rate is 10%.
• Nigeria Station: The minimum commission is US$1. In other words, even if your product commission is less than $1, you will be charged $1. Other sites do not have this provision.

This flexible commission policy gives sellers more choice and control, allowing them to decide whether to open a store on Jumia based on their product type.

2. Jumia shipping fee calculation method

The Jumia platform settles shipping costs directly with sellers. Usually shipping costs are calculated based on the larger of volumetric weight and gross weight.

Volume weight calculation formula:

• Nigeria and Kenya: Volume weight = (length cm * width cm * height cm) / 6000.
• Egypt, Morocco, Côte d’Ivoire, Ghana: volume weight = (length cm * width cm * height cm) / 5000.

In addition, platforms usually use the gross weight of the product to calculate customs clearance fees. It should be noted that currently only Côte d’Ivoire is required to levy an 18% VAT fee, and other sites will not charge this fee.

3. Other costs of the Jumia platform

Exchange rate

Because the currency credit of African countries is not high, the range of changes is prone to large fluctuations. The Jumia platform adopts a fixed exchange rate, which helps protect the rights and interests of merchants. If the platform’s rates change, the platform will promptly contact the merchant in the announcement. Merchants need to promptly adjust prices according to the changed fixed exchange rate to reduce losses caused by exchange rate fluctuations.

Other miscellaneous expenses

In addition to the known costs of the above platforms, there are also some costs that are easily overlooked by merchants:

• Return Fee: The overall return fee on the Jumia platform is more than 2%, and the return fee on the Egypt site is higher. It is recommended that merchants calculate it at more than 10%. to prevent losses later.
• Asset withdrawal service fee: The withdrawal service fee is generally around 1.2% and no more than 2%. Depends on the account status.
• Failed delivery, canceled orders midway, platform fines, etc. will all increase additional operating costs, and merchants can also consider them when calculating costs.
• For merchants who have done FBJ in overseas warehouses, they also need to calculate storage fees and operation fees for each order. For merchants who use cabinets, there are also unloading fees and other fees.

In fact, the losses of most merchants are mainly concentrated on other miscellaneous expenses in this part. The specific situation of each merchant may vary due to operating conditions, product quality, classification, etc. Merchants can make adjustments based on payments and store operations.

Jumia overseas warehouse storage fees

For international sellers, Jumia provides FBJ (Fulfillment By Jumia) service, which is free of storage fees for the first month, and then charges a monthly storage fee of 200 Naira per product (priced in Naira). However, new merchants need to operate the platform for a period of time before they can apply for FBJ services, because Jumia needs to select hot-selling products suitable for FBJ services based on the sales of new merchants.

In summary, Jumia, as one of the largest electronic platforms in Africa, provides sellers with flexible commission policies, transparent freight calculation methods, and diversified service options. For sellers looking to launch e-commerce businesses in the African market, Jumia is an important platform worth considering.