Firm predicts upsurge in eCommerce activities in Nigeria in 2013
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Jumia.com said the E-commerce industry was rapidly becoming a multibillion dollar source of revenue for a couple of the world’s online businesses, with a number of businesses already reporting considerable success; adding that in Nigeria, the process has been greatly influenced by the World Wide Web.
According to Jumia.com Co-founders, Raphael Afaedor and Tunde Kehinde in a report titled: “E-Commerce in Nigeria-The Jumia Story”, they referred eCommerce as the process of buying and selling of products or services on the Internet, adding that in practice, the term and a newer term, e-business, are often used interchangeably.
Afaedor noted that there is no doubt the Internet has come to stay and it’s amazing possibilities a fulcrum for millions of jobs and revenue to be created in the near future.
He said this rapid growth has also stemmed into the mobile internet market, and has seen in experience the possibility of customers shopping from their various mobile devices.
Afaedor explained that the rapid growth in Nigeria’s technological base has opened the nations market to home-grown online retail markets.
Speaking on figures, he said Nigeria has recorded an estimated 25 percent growth in online shopping with revenues valued at N62.4 million in 2011, a N12.5 billion increase from 2010, according to a report by Euromonitor international, a global market research organisation.
Taking a tip from these models, he noted that at Jumia, they sought to lead the online retail sector through empowering best hands and skilled personnel to function at their innovative peak.
To Kehinde, certain challenges have been faced in developing the business in Nigeria, which include; lack of infrastructure; communication; supply and logistics.
In the area of poor infrastructure, he said the issue revolves primarily around power, available technological expertise and poor funding for start-ups.
“Being an online retail company, it is of utmost importance to keep our power structure up and running all day, seven days a week; so one can wonder its financial implications on the business and how we manage to stay competitive with our pricing. It’s simple; as a company driven by targets and customer satisfaction we have built a mesh network of top local and international brands with a mission to bringing best quality products to our customers at the best price deals anywhere in the country, this in turn has helped us see a steady increase in our customer base, giving us the capacity to manage this challenge.
According to him, existing in an environment with need for further enlightenment as to the business of E-commerce, not forgetting the menace of cyber-crime associated with our society; “we at Jumia constantly seek to educate individuals about e-commerce; through our operations we try to gain the trust of our customers and prospects alike, also, constantly looking for channels to reach our customers to show them we care about bringing solutions to what should indeed be a relaxing experience.”
In terms of Logistics, Kehinde said the company has had to deal with the issues of bad road network, and the increased cost of transportation. He said with no excuses for disappointing the customers, the company has increased their fleet to serve increasing customer base and even extended bases to Abuja and Port Harcourt.
“Persistently doing our best to overcome these challenges, the Jumia brand has in a few months of operation; established itself as the No.1 online retail store in Nigeria with products and brands from electronic, computing, mobile, fashion, games and consoles, beauty products, fragrances, books through to babies’ toys and kids, positioned as the 8th most visited local content site, according to Alexa.com, an online marketing research organization, consolidated our business with various foreign partners, grown from 15- 150 employees in six months, with plans for an additional 100 jobs in 2013, rapid growth in Infrastructure- office complex, fleet, and brand affiliates and plans to grow our stores due to increasing demands by our customer and partnerships with various brands and suppliers.”
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