Jumia claims fall in informal sector as entrepreneurs move online
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.
More than 340 local SMEs have joined the Jumia Local initiative since its inception on October 1 2016. Under the programme, entrepreneurs who manufacture or assemble locally are invited to distribute and sell on the website at an initial rate of zero per cent commission. This means they keep 100 per cent of the revenue from their sales for the first six months, to encourage them to re-invest all their profits into scaling their business.
Chief Executive Officer, Jumia Nigeria, Juliet Anammah, said local vendors have quadrupled their sales over the last six months. “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. “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 seven items a month to selling about 400 products monthly. From our early days with just two employees in a small space, we now have about 40 staff members,” Abiola said.