E-commerce sector takes Coronavirus hit

By Lucas Ajanaku

The rampaging coronavirus pandemic has started taking its toll on the ecommerce sector in Africa. As a result of the virus, Kenya Airways suspended flights to China, which accounts for the country’s 21 per cent imports.

Meanwhile, e-commerce platform Jumia, has entered into a major partnership with Reckitt Benckiser, the global health products manufacturer to help consumers access hygienic products at the lowest price.

A spot check on various e-commerce platforms in Kenya showed that most players have delisted some products originating from China, Korea, Italy, and other worst-hit nations, with some customers reporting delays in delivery for products ordered as far as February.

On Jumia Kenya for instance, very few electronics, especially mobile phone accessories, are on offer compared to a similar period last year, ahead of Tech Week starting tomorrow.

Terry Machuma, an e-commerce expert told Biztech Africa that the lockdown currently witnessed in huge economies in Europe, Asia, and America will is likely to delay lead time, slow order delivery and exert pressure on pricing as importers pass costs to consumers.

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Online trading depends largely on shipments. The coronavirus menace has hampered flights with traders forced to rely on sea shipments for imports. This is catastrophic for e-commerce,” Machuka said.

Jumia said the partnership will provide a steady supply of hygiene products such as soap bars, disinfectants, and liquid hand wash at affordable pricing. These products are facing a growing demand from consumers taking hygiene precautions to prevent the spread of the Coronavirus. Jumia will be taking zero per cent commission on Dettol, JIK and Harpic, and will reinvest the initial commission into discounts on the consumer price.

Reckitt Benckiser is financing free shipping nationwide on all listed products. Consumers will be able to access all products from the “Stay Safe” page on Jumia, co-owned with Reckitt Benckiser.

“At Jumia, our primary concern is the health and well-being of our teammates, consumers, partners and communities. We strive to continue operating so that customers continue to use ecommerce as a safe way to shop in this challenging time.  We are proud to work closely with Reckitt Benckiser through the “Stay Safe” campaign, which shares consistent information about COVID-19 and provides access to key hygiene products at the most affordable price possible for our consumers,” said Romain Christodoulou, SVP Jumia Group.

The partnership will also provide critical information around Coronavirus. Reckitt Benckiser has created the Mythbuster website to help update consumers on risks and best practices to avoid the virus from spreading. Jumia is creating several awareness campaigns which direct consumers to both the ‘Stay Safe’ page and the ‘Mythbuster’ website.

“Reckitt Bencksier is delighted to partner with Jumia to ensure that access to the highest quality hygiene and health products is a right, not a privilege. By financing nationwide free shipping in all markets where Jumia operates, from capital cities to more rural areas, Reckitt Benckiser is providing a fair access to supply for all consumers, regardless of their location,” said Bart Meermans, SVP RB Health Africa/ Middle East / Turkey.

“The Federal Competition & Consumer Protection Commission welcomes the proactive, innovative and socially responsible approach Jumia and Reckitt Benckiser have adopted in addressing potential supply shortages in key hygiene products, ensuring affordability and accessibility, and promoting awareness regarding COVID-19.  FCCPC appreciates this and encourages similar dynamism that is consumer centred and provides value to consumers and society at large. We look forward to successful outcomes from this collaboration and will provide required regulatory support that the intention for affordable access is not frustrated or exploited by any, and that those who demonstrate corporate social responsibility are not at a competitive disadvantage against those who do otherwise,” said Mr Babatunde Irukera, the Director General of the Federal Competition & Consumer Protection Commission of Nigeria (FCCPC).

The partnership will cover eight of the markets where Jumia operates, that is Algeria, Egypt, Ghana, Kenya, Morocco, Nigeria, South Africa and Uganda.