Report: Jumia experiences surge in online shopping amidst Covid-19

Leading e-commerce platform, Jumia, has published its first Africa  e-commerce report, which shows that many consumers are shifting to shopping online in the wake of the Covid-19 pandemic that has limited social interactions.

This shift, according to the report,  is part of a broader economic transformation led by the continent’s young, urban and tech-savvy population.

The report was compiled in partnership with UNCTAD, IFC, and Mastercard, to highlight the impact of

e-commerce on the African economy.

While the COVID-19 pandemic led to meaningful supply and logistics disruption, it supported demand for everyday  product categories, fast-moving consumer goods and personal care categories in particular, which experienced strong  growth on the Jumia platform at the onset of the pandemic.

The effects of the pandemic, combined with dedicated commercial and marketing efforts on the Jumia side, led to a shift in our product category mix with everyday product  categories including Fashion, Beauty and FMCG categories accounting for c. 57% of GMV in 2020, up from 44% in  2019.

"This index underscores how instrumental Jumia has become to the consumers in the countries we serve,” said Sacha  Poignonnec, Jumia co-Founder and co-CEO.

"It is an important move for the industry as e-commerce brings daily solutions, convenience, and competitive prices to consumers."

E-commerce played an important role during the pandemic by providing solutions for both businesses and the

communities they serve.

Jumia’s partnerships with various brands and organizations have enabled SMEs to connect with millions of consumers online.

"We see a strong adoption of e-commerce and specifically Jumia in Uganda and across Africa and the customers who have shopped online stay because of the quality of service, price and convenience we offer. In the last 2 years, the Jumia service was even more critical to enable sellers to keep their shops open and customers safe in their homes while getting the goods and services they need delivered at home," said Ron Kawamara, CEO Jumia Uganda.

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 $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, Chief of the ICT Policy, UNCTAD.

COVID-19 has accelerated the pace of innovation towards improving financial inclusion, especially the need for cashless payments.

"Consumers are increasingly shifting their spending habits to embrace contactless tap-and-go payments, online shopping, and are exploring the potential of new ways to pay," said Ngozi Megwa, Senior Vice President Digital Partnerships, Middle-East and Africa, Mastercard.

Jumia has seen increased utilisation of digital payments on its platform. More consumers turned to JumiaPay for the first time during the pandemic, mainly for safety reasons and for the enhanced services on the app like bill payments.