Jumia Sales: Consumables Lead as Shopping Habits Shift

Jumia Observes a Shift in African Consumer Shopping Trends

Jumia, the NYSE-listed e-commerce platform, noted a notable change in consumer behavior throughout its African markets during the previous year.

Increased Demand for Essential Goods

A greater proportion of shoppers focused on purchasing everyday necessities rather than electronics. This trend resulted in a 13 percentage point increase in the total sales value of Fast-Moving Consumer Goods (FMCG) for Jumia, rising from 44% in 2019, as detailed in the recently published Jumia Africa E-commerce Index 2021 report.

The shift towards essential goods is attributed to stay-at-home measures that encouraged online shopping, coupled with a young demographic and expanding smartphone and internet access across the continent.

Smartphone Dominance and COVID-19's Impact

Smartphones accounted for 75% of all traffic to the e-commerce site. Jumia Group’s head of communication and public relations, Abdesslam Benzitouni, explained to TechCrunch that providing access to essential food and services led to increased demand for related products, moving away from traditional purchases like phones and electronics.

He further stated that the COVID-19 pandemic underscored the importance of e-commerce within the communities Jumia serves.

Expansion of Jumia Mall and Market Leadership

Jumia Mall, the platform’s dedicated space for official brands, experienced an influx of new sellers. This expansion broadened shopping options and provided consumers with a more diverse product range.

Currently, Jumia stands as the largest e-commerce platform in Africa, surpassing numerous competitors, including Kilimall, Marketplace Africa, and bidorbuy.

Benefits of Brand Presence on Jumia

Brands recognize e-commerce as the future of retail. Their presence on Jumia ensures accessibility for consumers and strengthens their market reach.

The platform’s diverse seller base fosters transparency and competition among brands.

Key Statistics from the 2021 Report

The report, a collaboration between the United Nations Conference on Trade and Development, International Finance Corporation, and Mastercard, revealed that 28 million orders were placed on the platform last year.

Lagos, Cairo, and Nairobi generated the highest order volumes, respectively.

Jumia Pay and Market Growth

Approximately 35% of orders were settled using Jumia Pay, the company’s financial service, enabling customers to pay bills and complete purchases without leaving the Jumia ecosystem.

The Jumia brand experienced growth across all its markets, with Uganda, Senegal, and Tunisia demonstrating the most significant increases.

Internet Penetration and E-commerce Potential

Jumia attributes the growth within Africa’s e-commerce sector to the increasing, though gradual, expansion of internet access.

According to the 2021 GSMA mobile economy report, 303 million people, or roughly 28% of the population in sub-Saharan Africa, are connected to mobile internet.

Challenges to E-commerce Adoption

This figure is projected to reach approximately 40% by 2025, creating a larger market for internet-based businesses like Jumia. However, a recent report by the International Trade Centre (ITC) indicates that e-commerce adoption in Africa remains relatively low.

Only 10 countries account for 94% of all online business activity. Nigeria, South Africa, and Kenya dominate online sales in sub-Saharan Africa.

Infrastructure and Rural Access as Obstacles

The ITC report emphasizes that Africa’s digital and economic infrastructure significantly impacts e-commerce success, explaining variations in performance across different countries.

More than half of the population in 60% of African nations resides in rural areas, where internet connectivity is often limited and access to distribution centers is challenging, resulting in costly or nonexistent delivery services.

Jumia's Logistics Network Expansion

Despite these challenges, orders from rural areas accounted for 22% of the total volume on the Jumia site. This is attributed to the company’s expanding logistics network.

Over the past nine years, Jumia has developed a logistics network aimed at enabling shopping access for individuals in remote locations.

Opening the Logistics Marketplace

Jumia has expanded its logistics marketplace to third-party providers, previously limited to food vendors and e-commerce operations.

The company now collaborates with 300 logistics partners and operates 1,600 pick-up stations across its 11 African markets, including Algeria, Senegal, Tunisia, Uganda, South Africa, Nigeria, and Morocco.

Future Growth and Pan-African Opportunities

As of last year, Jumia had approximately 110,000 annual sellers and 6.8 million active customers, a relatively small number considering the continent’s overall population.

The ITC report highlights that the growth of e-commerce across the continent is hindered by a lack of cross-border opportunities, as most platforms operate within national boundaries.

The report suggests a significant opportunity for a marketplace with a strong pan-African presence.