Case study: how Jumia became Nigeria’s #1 eCommerce marketplace
Have you ever wondered how international companies are able to scale in such a short period of time? That’s exactly the reaction to Jumia, the largest online shopping mall in Nigeria with over 700,000 weekly visitors, 50,000 product items and over 30 product categories.
Jumia Nigeria was established with the vision of offering Nigeria’s substantial consumer demographic a shopping experience that is convenient, consistent, safe, and second to none. It strives to promote economic development and empower young entrepreneurs to gain direct access to potential customers across Nigeria’s 36 states. Since its launch in 2012, the company has become the number one online retailer in Nigeria by value, volume and visits.
So how did Jumia Nigeria do it?
Jumia’s major obstacle for international growth was payments. The majority of Jumia’s sellers are located in China, Hong Kong and Malaysia with the largest buyers’ community residing in Nigeria. The marketplace found it very difficult to send mass payouts from Nigeria to their sellers around the world. After moving their operations to Europe, they still struggled with transferring money on time, smoothly and in a regular fashion. They also faced challenges with regards to large transaction costs and the high fees taken by each party involved when making international wires.
Jumia heard about Payoneer through their sellers who recommended it as their preferred payment method. The solution provided by Payoneer allows Jumia to pay sellers in 200 countries in over 150 local currencies. Jumia pays sellers into their Payoneer Account, from which they can withdraw funds to their bank account, in their local currency, or transfer money to others in the Payoneer network.
“It is not easy to find a solution that can seamlessly and smoothly transfer payments from Europe to China. Payoneer’s added advantages are that it’s a secure platform, offers multiple payment options and has a customer support team that can deal with our sellers’ enquiries,” said Shayak Mazumder, Head of International Operations, MD, Africa Internet Group, the mother company of Jumia.
Jumia Nigeria drives success!
Jumia was able to onboard many sellers from China and Hong Kong and they’re now looking to onboard sellers from other parts of the world, such as India, Pakistan and Bangladesh, through the Payoneer ecosystem.
“Payoneer has helped us save lots of time and effort. We are thankful to Payoneer for creating such a seamless environment. Jumia is becoming a major player in cross-border eCommerce, and Payoneer will help us achieve that with significant inputs. What’s more, the whole team at Payoneer is super active and helpful. That makes my job a lot easier to do.”
Check out the full case study here.
Are you an ecommerce seller looking to receive payments from Jumia or other marketplaces? Click here.