In a bid to improve the delivery of products to underserved communities, especially rural and semi-urban areas, more e-commerce companies are increasingly turning to practical and innovative solutions such as pickup stations to bridge this gap.
Today, e-commerce continues to revolutionise the way people buy and sell goods, offering unparalleled accessibility and convenience.
However, in rural and semi-urban areas, poor infrastructure, limited access to delivery routes, and high transportation costs remain significant barriers, preventing residents in those places from fully enjoying the benefits of online shopping.
Sunil Natraj, CEO, Jumia Nigeria, pointed out that infrastructure gaps are among the most significant hurdles for e-commerce players seeking expansion beyond urban centres.
Natraj added that rural areas often suffer from poor road networks as well as limited and non-existent delivery networks, making traditional door-to-door delivery both costly and inefficient.
According to him, the pickup stations are a realistic and effective solution to these challenges, providing online shoppers with a convenient alternative to home deliveries.
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Explaining further, he said the pickup stations are strategically placed collection points where customers can easily retrieve their orders.
Instead of navigating poorly maintained roads or traveling long distances to distant locations, he said e-commerce companies can concentrate on establishing central pickup hubs that are accessible to a broader audience, eliminating the need for last-mile delivery, which is often the most expensive and time-consuming part of the logistics chain in rural areas.
He noted that Jumia has embraced this strategy through its City Expansion Initiative, deploying pickup stations in remote areas to expand its reach and impact.
“By positioning pickup stations in key locations, we can overcome the logistical challenges that previously made e-commerce expansion into these regions unsustainable, if not impossible,” he said.
“Whilst the infrastructure gaps are major issues being tackled with the advent of pickup stations, another critical barrier for customers is the high and extremely unaffordable cost of delivery which sometimes makes it super expensive for customers who live far from major cities to engage in online shopping.”
“Pickup stations offer a more affordable solution, rather than being subjected to paying exorbitant fees for home delivery. Customers can access goods at lower prices, and e-commerce companies can offer competitive delivery options without the need for complex last-mile logistics.”
Idrees Luqman Akorede, CEO of Elhay Services, said he transformed his shop in Sagamu into a Jumia pickup station and observed a substantial increase in foot traffic, resulting in increased revenue.
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