Distribution challenges have plagued African businesses for ages often resulting in the demise of several businesses, exorbitant pricing of goods to consumers, inhibiting new market entrants and limiting the assortment of goods available to the African consumer. The distribution challenges on the continent have ranged from a limited number of capable service providers, limited coverage of existing providers, low local capability to manage the service and consequently translating into a high cost of distribution as several big brands have had to build their distribution networks to reach their consumers.
The African e-commerce pioneer, the Jumia Group, recently restated their commitment to supporting the growth of businesses on the continent by launching Jumia Logistics to third party businesses and individuals. Previously, Jumia’s Logistics services were reserved for e-commerce and food vendors operating on its Jumia marketplace platform. Jumia’s logistics services are now open to third party businesses who wish to leverage its wide distribution network, innovative technology and expertise in warehousing, trucking, and last-mile deliveries across 11+ countries in Africa.
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COVID-19 pandemic regulations have further escalated distribution costs, particularly logistics, forcing several business owners and key decision-makers across the continent to reconsider their cost of doing business, often resulting in cutbacks. Over the same period, Jumia has stepped-up effort to support businesses in the continent by partnering with businesses ranging from small businesses shipping a few packages every week to larger corporations to resolve their logistics and distribution challenges leveraging its huge scale, unparalleled expertise, and dispersed footprint in all states of the country and with as low as N750 per package (for select cities).
Jumia logistics understands the critical role of Logistics and consumer satisfaction being the bane of its e-commerce business and extends this to its logistics clients and their customers in addition to helping businesses meet and deliver on the increasing need for convenience from consumers. One of several examples of Jumia logistics redefining customer convenience for its clients is the home delivery of “OTP secured” replacement ATM cards for banks customers saving its banking clients an estimated 30 percent of customer visits to branches. Jumia Logistics is also partnering with consumer goods brands to consolidate and deliver stock to their retailers across cities on time, at discounted logistics prices with fewer truck moves, less CO2 emission and allowing the retailers to focus on serving their consumers.
With over 500 hubs across the country connected by a robust integrated technology framework and close to real-time visibility with a secure last-mile delivery process of packages, the future of distribution seems brighter for the country, Jumia and businesses that would avail themselves of the service offering.
