E-commerce platform to tap into underserved markets for growth and job creation

Online shopping platform -Jumia has announced the launch of its report dubbed "E-Commerce in Rural Areas". The report highlights how online marketplaces create opportunities for underserved rural regions, by providing access to millions of products and also creating employment opportunities.

The report cited Beauty, Home, Phones, and TV as the leading categories currently demanded by rural customers in Kenya. Consumers mentioned Jumia’s competitive prices and product diversity as the main reasons for shopping online.

"We are proud to bring a modern and convenient shopping experience to customers located in small Kenyan towns and to give them access to millions of products that are not available locally. Jumia’s development in peri-urban and rural areas of Kenya also shows our commitment to driving economic growth and improving lives through the Internet," said Charles Ballard, CEO of Jumia Kenya.

This report further highlights the crucial role JForce - a countrywide network of over 25,000 independent sales agents - who drive awareness in local communities, inform customers about Jumia's offers, and help them order on the platform. JForce agents play a crucial role in boosting e-commerce awareness in rural areas, fostering growth and brand adoption. The agents are their own bosses and earn commissions based on their sales on the platform. They help rural consumers place online orders (which are then delivered within 2 to 4 days to local Pick-Up Stations where customers collect their orders).

“E-commerce enables all consumers to buy products at the same price whether they live in Nairobi, Meru, or Lodwar. Delivery costs have also decreased over the years, the average delivery cost to rural areas is now around $ 3 depending on the item's size. Pick-Up Station deliveries have helped reduce prizes and minimize the environmental impact”. Said Chris Nyaga, Head of Logistics, Jumia Kenya.

He added, "Eldoret, Nakuru, Kakamega, Kitale, and Kisumu are the areas showing the most promising consumer demand.”

Currently, the e-commerce platform has developed its network of 350 Pick-Up Stations (PUS)to meet the needs of rural consumers. I

ts collaboration with over 45 local logistics partners ensures streamlined supply chain operations. It enables the company to offer competitive and timely delivery options to these rural areas.

The New York Stock Exchange (NYSE) listed firm Jumia became the first Africa-focused technology company to list on the stock market.

In less than a decade Jumia rose to become Africa’s largest e-commerce platform and the continent’s with a value of $1 billion and above. The platform is riding on the surge of smart mobile phones and broadband networks across Kenya to grow its agency business. The report highlights the company's dedication to driving sustainable growth, empowering communities, job creation, and closing inequality gaps.

GAROWE ONLINE