Jumia e-commerce platform: a comprehensive analysis from market potential to operational details

As the largest e-commerce platform in Africa, Jumia not only has huge market potential, but also has a stable logistics system and diversified hot-selling categories. This article will comprehensively analyze Jumia’s advantages, payment recovery time, hot-selling categories, and other fees on the platform to help merchants better understand this platform.

Huge market potential

Jumia realizes that the African market has a huge population base and the rapid growth in Internet penetration has created huge opportunities for the development of e-commerce. According to data, in January 2018, Jumia’s website visits exceeded 100 million times, demonstrating its strong position in the African e-commerce market.

Platform advantages

Logistics advantages

Jumia cooperates with stable and reliable third-party logistics providers to ensure that logistics problems are solved. In addition, Jumia has also established its own terminal logistics and distribution system, which is relatively rare in the world.

Traffic advantages

Jumia has a huge user base. In 2021, website traffic exceeded 1.1 billion, annual orders exceeded 34 million, and a transaction was completed every 2 seconds on average. This provides merchants with a broad market space.

Business knowledge learning

Jumia’s official website has set up a merchant teaching center. Merchants can learn about platform policies, product management, order management and other information through official channels.

Refund time

Shops on each Jumia site (direct mail and overseas warehouses) support payments to merchant accounts. The payment cycle is twice a month (generally paid on the 5th to 7th working day after the end of each billing cycle). The conditions for repayment include that the backend of the site where the store is located has been bound to the account and there is an amount to be paid in the backend bill.

Hot-selling categories

Fashion and Apparel

Fashion and clothing categories have always been hot-selling on Jumia, and the main consumer groups include young people, fashion enthusiasts and business professionals.

Electronic products

Electronic products such as smartphones, tablets and accessories are also popular, with major consumer groups including young people, students and professionals.

Home and Appliances

As urbanization accelerates, the demand for home furnishings and home appliances is gradually increasing. This category appeals to housewives, newlyweds and young families.

Fast moving consumer goods

Food, daily necessities and personal care products are common shopping options on Jumia. Merchants can use strategies such as subscription models, promotions and fast shipping to attract customers.

Other platform fees

There are also some other fees that may be incurred on the Jumia platform:

Restocking fee

The overall return cost of the Jumia platform is more than 2%, and the return cost of the Egyptian site is higher than that of other sites. It is recommended that sellers calculate the return cost to more than 10% to avoid losses in the future.

Fund withdrawal handling fee

The Jumia platform uses P card to collect payments, and the withdrawal fee is usually 1.2%~2%.

Failed delivery, canceled orders midway, platform fines, etc.

These will increase additional operating costs. The specific amount needs to be determined by the platform based on the situation, but sellers can also take these costs into consideration when calculating fees.

FBJ overseas warehouse fees

Sellers who operate FBJ overseas warehouses also need to calculate storage fees and operating fees for each order. Sellers who use warehouses also need to consider unloading fees and other expenses.

Punishment mechanism

The Jumia platform maintains platform order and protects consumer interests through a punishment mechanism. For merchants who violate regulations or commit fraud, the platform will take corresponding measures, such as fines for insufficient inventory, order restrictions, etc.

Summary

By in-depth understanding of the characteristics, advantages and operational details of the Jumia e-commerce platform, merchants can better use this platform to develop the African market. Whether from the perspective of logistics or hot-selling categories, Jumia provides merchants with broad development space [[3][[4]].