COVID-19 Accelerated The Shift To e-Commerce In Kenya

Jumia has published its first Africa e-commerce report that leverages the company’s extensive consumer data to unpack trends in online shopping throughout the pandemic.

Dubbed, Jumia Africa e-Commerce Index 2021, the report details the most significant insight as to the strong shift of consumer online shopping behavior towards everyday product categories (FMCG, Beauty). These accounted for c. 57 per cent of GMV in 2020, up from 44 per cent in 2019.

The shift is part of a broader economic transformation led by the continent’s young, urban and tech-savvy population. The report was compiled in collaboration with UNCTAD, IFC, and Mastercard, highlighting the impact of e-commerce on the African economy.

Jumia Kenya CEO Sam Chappate said, “Online grocery shopping has lagged in other categories historically in Kenya. The pandemic has shifted consumer behavior. Kenyans are now increasingly considering online shopping for their everyday needs – seeking convenience and competitive prices. This is an important shift for the e-commerce industry because it allows us to become a more relevant service & bigger part of everyday life for Kenyans”

Jumia has extended retail services to rural areas in Kenya since the pandemic first hit in March 2020. It has since doubled the number of pick-up stations countrywide to more than 1,000 today, offering convenience and a 30 per cent reduction in shipping fees. This is a welcome move to consumers, especially with the shift to everyday essentials.

“We believe our large range of products and competitive pricing is relevant for consumers in and outside Nairobi. By expanding our pick-up station network and working with local entrepreneurs, we are already seeing an acceleration of e-commerce penetration upcountry,” said Chappatte.

The report also shows that Nairobi tops the list as the Kenyan city with the highest number of online deliveries followed by Mombasa and Kiambu.

According to the United Nations Conference on Trade and Development (UNCTAD), internet businesses in Africa, including e-commerce which sits at the heart of the digital economy, could add US USD 180 billion to the continent’s GDP by 2025.

“COVID-19 led to a surge in the use of digital solutions, including e-commerce. This was particularly demonstrated with domestic sales rather than cross-border e-commerce. Food delivery, essentials, and pharmaceutical goods were among the top-performing online shopping categories,” said Torbjorn Fredriksson, Head of E-commerce and Digital economy, UNCTAD.

Here is the full report.