Sorry for the length. TL/DR: If you shopped online at Jumia/Konga, did you pay online before your order was deliver? Why/why not?
So I keep reading about Jumia, Konga, and all these new ecommerce plays popping up in Nigeria. But I was under the impression bank penetration is low, card/internet banking penetration is low, and even if people have cards/online banking accounts, the vast majority of people still use cash for e-commerce (which is almost an oxymoron for me but that’s besides the point). I think Jumia/Konga personnel have said in past interviews that their orders are mostly cash on delivery.
Pretty interesting topic so I thought I’d put it to the cabal behind the Cabal and see. I guess I’d like to hear views on this generally. If you’ve paid for an order on Jumia/Konga before did you pay in advance with card/internet banking/quickteller or cash on delivery? Why? What do you think are the key things preventing those that have bank accounts/online banking/cards from paying online? Does the threat of fraud/insecurity still loom large? Is it not a fraud/thing thing but more of a trusting Jumia/Kong to deliver and deliver the right product thing? Is it that even if all cardholders paid online, penetration is so low that that doesn’t really make a big impact?
I know we celebrate Jumia/Konga/and all but I’m thinking it must be pretty hard to do cash-based ecommerce at scale sustainably. I know both companies are in growth stage <3 yrs old, but nonetheless both are also not (yet) making profit (I believe). And if you contrast with ecommerce in other markets, Amazon for instance, a big boost to the business model is getting paid online by customers before having to pay suppliers (e.g., Google “Amazon + negative operating cycle”).
Sorry for the length, but super interested to know thoughts and experiences. Thanks!