Jumia, the e-commerce platform has recorded Year-on-Year (YoY) growth of 40 per cent in Quarter 1 (Q1) of 2022, compared to the same period in 2021.
This is as the company has linked its success to the free delivery service it offers to clients.
These were contained in the company’s Q1 2022 financial report released to the public recently.
A statement by the company stated that its revenue also increased by 44 per cent within the same period, while its quarterly active subscribers increased by 28.7 per cent, from 2.4 million in Q1 2021 to 3.1 million in Q1 2022.
Also, iys gross merchandise volume (GMV) – the total value of products sold, also increased by 27 per cent YoY.
Besides, growth in these metrics can be linked to its fast-moving consumer goods and food delivery category, which grew by 180 per cent YoY and 86 per cent YoY, respectively.
Jumia explained that it is important to note that fast and free shipping plays a significant role in repeat purchases.
The company said 57 per cent of the packages it shipped in the last quarter reached consumers within 24 hours of order placement.
Jumia had earlier in the year, launched its free delivery service to consumers in Lagos and Abuja, with expansion to Ibadan in Q2 2022.
Jumia also said that its growth in recent years was due to a better warehouse organisation in picking and packing items and coordinating with logistics providers and delivery riders.
These free shipping perks from online retailers are mostly available to consumers in big cities due to the high rate of e-commerce activities.
Olajide Akeem, a Jumia consumer, acknowledged that since the introduction of free delivery in January 2022, he now shops more for his groceries while paying less.
“The free delivery incentive offered by Jumia allows me to shop more for my everyday items like semo, oats, sardine and spaghetti. Rather than going to a physical market and pricing from one shop to the other, I can sit in the comfort of my home and have my items delivered to me without having to pay for shipping. The convenience of shopping online is truly amazing and to top it with free delivery means I will keep coming back to the platform”, he said.
“Now that Jumia has normalised the concept of fast, free delivery, with its improved logistics services, businesses in Nigeria need to do more to meet consumer demands for fast shipping at no extra cost,” Jumia stated.
Free shipping has become one of the top three factors affecting consumers’ decision to purchase online, closely followed by same-day delivery and free returns.
With subscription plans like Jumia Prime paving the way for free delivery, consumers in Nigeria are now more expectant of the same from every online retailer.