The Kenya government hopes to tap into Jumia’s e-commerce base to export goods and help increase export volumes.
Speaking when he launched the 2018 Jumia Black Friday, Trade Principal Secretary Dr. Chris Kiptoo said they will be looking to tap into e-commerce to boost the trade exports. He said that the availability of markets and deals with the European Union, AGOA and the recently signed African Continental Free Trade Area provides market that should be tapped.
The PS decried the huge trade imbalance with countries like China, stating that the government is looking for ways of reducing it and this will partly become a reality through providing an enabling environment for e-commerce to thrive.
According to the United Nations Conference on Trade and Development (UNCTAD), Kenya’s e-commerce accounts for six per cent of all purchases.
At the launch of the 2018 Jumia Black Friday which starts on November 2nd and will last for a month, Jumia challenged the over 500 vendors who attended it to stock their products as sales are always highest.
Jumia Head of Marketplace Chris Rumenda gave conservative estimates at seven times more orders than normal, necessitating the need to better stock and faster deliveries in order to recoup and make a profit.
Sam Chappatte, the Managing Director said as they seek to increase vendors from the current 10, 000 to 15, 000 by next year. He noted that the company has a healthy balance sheet and wants to leverage on Black Friday to show value to customers and vendors. “We are doubling every year, driven by new customers and repeat customers”, he said.
This year, Visa are the main sponsors of Black Friday. Customers who make payments using visa will get free deliveries and sh250 off the cost of each order.
There will be more than a million deals that will be 70 per cent off their normal prices. There will also be one flash hour every day.
Partnership with CocaCola will also see free deliveries. Another partnership with Simba Colt will see flash sales on cars at 40 per cent off the normal prices.
“Twice as many vendors are making more money” added Mr. Chappatte. He however noted that the platform is more competitive.
Jumia Kenya has over 3.5 million products on their platform.
Across the continent, Jumia has 17 million merchants and 1.2 billion customers.
“Trust is the biggest barrier to e-commerce. Customers need faster deliveries. The success rate is that ship within 24 hours during normal periods but on Black Friday, make it immediate”, added Mr. Rumenda.