2021 Business Update & Revised Charges

Dear Valued Partner,

2020 has been a challenging year for businesses globally. Despite this we have worked together to accomplish the following:

  • Navigate the COVID situation – keeping our customers, vendors, staff & other stakeholders safe. And working with the government to retain the right to operate.
  • Tighten our product quality controls & speed of delivery for our customers – which is important for repeat purchase and customer loyalty
  • Respond to the shift in customer demand – and rapidly growing the sales of everyday essentials (Food, Home Care, Beauty and Fashion)
    A good Jumia Anniversary and Black Friday despite the pandemic

In 2021, together we plan to:

  • GROW – we will be investing more heavily in marketing this year.
  • Increase the number of Pick Up Stations, lower delivery costs & increase Cash On Delivery all across the country and launch Jumia City Partners in the top 30 cities.
  • Onboard more brands & launch new services to increase the relevance of Jumia to customers, to make the platform more valuable for YOU!
  • Lower the cost of operations by being more efficient. This will enable us to move closer to break-even so that we can be here long term as your ecommerce partner.
  • Improve Customer Experience by shipping Drop Shipping packages within 24 hrs.
  • Engage with the government on Digital Service Tax (DST) & other taxes they are considering.

To accomplish these things, taking into account YOUR feedback & incorporate the impact of DST, we will be making the following changes effective 1st February 2021:

  1. Vendor shipping contribution will be removed for all stocks on Jumia Express for the following categories: Food Cupboard, Household Care, Health & Beauty and Fashion
  2. Drop Shipping fees will be reduced by 50% for the following categories: Food Cupboard, Household Care, Health & Beauty and Fashion.                     
  3. Warehousing Charges (Jumia Express Fees) will be free for the first 15 days for all stocks on Jumia Express for all categories.
  4. The base storage fees have also been reduced by over 30% for all categories, meaning it’s cheaper to sell on Jumia Express!                             
  5. After the first 15 days, the storage fees will evolve progressively – increasing based on how long the stock has been sitting in the warehouse, according to the following ageing buckets:
  6. To take into account requests to simplify Jumia fees for lower value items, we have removed additional fees & increased commissions. The following commission changes will be implemented effective 1st February 2020. All commissions are inclusive of VAT:   
  7. To cover some of the costs linked to returning items from our inventory (usually from excessive inbounding), we will implement a Return To Vendor (RTV) fee per item as follows:
  8. All previous exemptions for Made in Kenya merchandise will expire on the 31st Jan 2021 and full margins will apply from 1st Feb 2021. We will continue to support local manufacturing through dedicated marketing campaigns throughout the year.

What do you need to do?

  1. Plan to move your best sellers to Jumia Express to take advantage of the reduced rates
  2. Work closely with your relationship manager to inbound only the right amount of stock into our warehouse (it can be free! Or expensive if you bring in too much)
  3. Review your stock and prices for all your products ahead of 1st February 2021
  4. Request a Return to Vendor (RTV) for any stock you have in the warehouse that is over 60 days
  5. Target all Drop Shipping merchandise within 24 hours of receiving orders to benefit from further discounts (as previously announced)
  6. Reach out to your Account Manager or through our Contact Form in case of any queries

We look forward to an even better 2021!

Revised Charges Update

To give you a good idea of how the new charges will be applied we decided to share a few examples. The three main themes from the questions you raised are:
  1. More detail regarding the new charges by sub-category
  2. How the new storage fees can are calculated

Comprehensive list of charges

Below are the main categories where commissions have been changed. The list of all the charges (Commissions, Shipping Contribution and Jumia Express Fee) can be found 
HERE for now and as of February 1st, on Seller Center > Profile > Commissions and Fees Jumia Express progressive storage fees The progressive storage fee is set up to help us use our limited storage space more effectively and help you leverage Jumia Express more for your best sellers. After the first 15 days, the storage fees will evolve progressively – increasing based on how long the stock has been sitting in the warehouse, according to the following ageing buckets:

Table: Storage Fee by Age

Case Scenario 1: Vendor X, inbounded 100 phones (falls under small items category) on February 15, 2021. All items were sold off in 15 days. The Jumia Express Storage fee for all the 100 phones is FREE. Case Scenario 2: Vendor Y, inbounded 100 phones (falls under small items category) on February 15, 2021. All items were sold off in 30 days. The maximum Jumia Express Storage fee for all the 100 phones is (KES 17.50 x 100 pieces = KES 1,750). As a reminder, the base storage fees have been reduced by over 30% for all categories, meaning it’s cheaper to sell on Jumia Express!
Table: New JE Fee vs Old JE Fee
From this we can see clearly that it’s absolutely FREE for the first 15 days. The ideal scenario is that all items inbounded into the warehouse are sold under 30 days to make it cheaper for you.

A reminder on what you need to do

  1. Plan to move your best sellers to Jumia Express to take advantage of the reduced rates
  2. Work closely with your relationship manager to inbound only the right amount of stock into our warehouse (it can be free! Or expensive if you bring in too much)
  3. Review your stock and prices for all your products ahead of 1st February 2021
  4. Request a Return to Vendor (RTV) for any stock you have in the warehouse that is over 60 days
  5. Target all Drop Shipping merchandise within 24 hours of receiving orders to benefit from further discounts (as previously announced)
  6. Reach out to your Account Manager or through our Contact Form in case of any queries