Recent online price comparison among e-commerce retailers has shown that e-commerce platforms in Nigeria are beating out competition on price in the global online retail marketplace.
Research shows that the new Apple iPhone8 64GB, which is being sold on Amazon.com, arguably the biggest e-commerce platform in the world for the price of $825, which converts to N297,000 using the current exchange rate of N360 to $1, is currently being sold on Jumia, Nigeria’s pioneer e-commerce platform for N281,999. This is a significant difference of N16,000 ($44.50).
A local market price comparison shows that the Samsung 32-inch sharp TV retails for N80,000 on Jumia, while the same is sold on competing retail site for N90,000. The PS4 500GB bundle is being sold for N119, 000 on Konga and N113, 890 on Jumia.
Also, the Camon CX Air 5.5 inch currently retails for N40, 700 on Jumia while the very best price at other offline stores across the country is N40,800, while the iPhone 7 plus 32GB is available on Jumia at N260,925 but most offline physical stores sell at N325,000.
Yudala, composite online and offline retail chain store has also proved to be significantly cheaper than competitive e-commerce platforms in Nigeria.
A recent local price comparison shows that Yudala sells the Scanfrost 32 inches HD LED TV for N62,500 while Konga and Jumia sells the same item for N72,000 and N66,000 respectively.
With price being one of the most important factors that activates the buying decision for most online shoppers, it has become imperative that e-commerce outfits in the country compete desperately, especially as purchasing power is reducing as a result of the current economic downturn.
Shobhit Pandey Chief Commercial Officer, Jumia Nigeria says that Jumia’s best price strategy is coupled with the widest range of genuine products to help shoppers stretch their naira and get more value out of their budget and spending.
“There are more than 1.4 million products on Jumia.com.ng, ranging from furniture to baby products to electronics,” Pandey said. “Our commitment is to consistently bring shoppers the widest range of genuine products at the best prices.”
With the fluctuating rate of foreign exchange in the country, which affects the prices of goods and services, Nigerian consumers continue to look for the most convenient channels and affordable means to procure goods and services.
“Despite the huge strides recorded in the Nigerian e-commerce landscape – especially with the massive awareness for globally celebrated shopping festivals such as Black Friday and Cyber Monday, among others, research further shows that you are better off convincing the average Nigerian to make the final buying decision when you can provide him or her with an opportunity to ‘experience’ the product before parting with hard-earned money,” says Gideon Ayogu, Head Corporate Communications, Yudala.
Ojuola Asuquo, head of Engagement Marketing, highlighted the availability of customer protections on Jumia, which aren’t offered by most physical stores in Nigeria:
“Jumia customers can pay cash on delivery, enjoy a 7-day return policy, have access to device insurance, and also enjoy free shipping offers and discount vouchers.
“For those who like to shop abroad, Jumia features international stores where you can shop and pay in naira and enjoy local shipping rates.”
BusinessDay findings show that prices on Nigeria’s e-commerce platforms are most times cheaper than prices in popular outdoor markets and physical stores.
