E-commerce has experienced exponential growth in Nigeria in recent times and analysts say this is a result of increased broadband penetration, internet access and smartphone use.
Experts say the growth and adaption on e-commerce in Nigeria is inevitable as technology is rapidly taking over most industries and local manufacturers and entrepreneurs have realised that there is a huge advantage in playing in the online space, hence the reports that Nigeria’s informal sector is experiencing shrinkage as locally produced good are moving online and entrepreneurs are expanding into online retail.
Jumia, one of Nigeria’s largest e-commerce platforms recently announced a significant increase in the patronage of locally produced products on its website since the 2016 launch of Jumia Local– its dedicated store for made-in-Nigeria products.
The company reported that the top most visited products on Jumia.com.ng are now products sold by its Jumia Local vendors. Apart from those in the phone category, the top five sellers on Jumia are all Jumia Local vendors.
According to Juliet Anammah, CEO Jumia Nigeria, “We pleased to report that Jumia Local vendors have quadrupled their sales over the last six months.”
Anammah said “this rise in the patronage of local vendors and products on Jumia is good news for our local economy and ofcourse for the small business owners on the platform.”
“The popularity of local products also points to the significant role that ecommerce plays in stimulating local manufacturing, “said Anammah. “As businesses on Jumia gain greater exposure and access to a ready customer base, they also gain access to a steady cash flow and insight that enables them to respond quickly to the needs of their customers.”
Oladipo Abiola, the owner of fashion brand, Virtue Clothiers is a local entrepreneur who has personally experienced the ripple effects of selling on Jumia Local.
“I went from selling 7 items a month to selling about 400 products monthly,” Abiola said. “From our early days with just two employees in a small space, we now have about 40 staff members,” Abiola said.
He said that selling on Jumia not only solved the problem of distribution, but the sudden increase in customer demand pushed him to put strategic business processes in place. He began to source for local raw materials, manufacture his own products, and training the youth in his local community to join his growing team.
Jumia revealed that more than 340 local SMEs have joined the Jumia Local initiative since its inception on October 1 2016. Under the program, entrepreneurs who manufacture or assemble locally are invited to distribute and sell on Jumia website at an initial rate of 0 percent commission. This means they keep 100 percent of the revenue from their sales for the first six months, to encourage them to re-invest all their profits into scaling their business.
