Is Cash on Delivery the recipe for Kenyan business? A MUST READ!

Cash on delivery is the method of payment that allows customers to purchase products on a company’s website or make orders via phone and pay for them upon delivery on their doorstep or office, this form of business is as old as 1635 in England but in Kenya, it has only began taking shape and could possibly be the recipe of Kenyan businesses.

According to JUMIA, Kenya’s No. 1 online retailer Cash on delivery accounts for over 55% of its transactions in Nairobi and Mombasa, the two cities the company offers the mode of payment. Parinaz Firozi, MD Jumia Kenya says Cash on delivery has helped the company acquire new customers.

“Over 60% of our customer acquisition has been through cash on delivery. There is zero risk for the customer since they only pay for the product if they like it, there are no cost implications if they reject the product, the delivery man just takes it back. Its stress free,” Firozi adds.

In a country where credit card penetration remains a major headache for financial institutions and the government with several flopped initiatives, Mobile money transfer remains the alternative. 

Jumia Kenya begins operations at new hub in Mombasa

Nairobi Kenya, 3^rd October 2014- JUMIA Kenya a subsidiary of African Internet Holdings and the leading online retail outlet has commenced operations at its new hub located at Likoni, Mombasa.

The new hub will meet the demands of coastal residents embracing online shopping and provide a significant number of jobs for the area. A similar move expected in other towns in Kenya.

Parinaz Firozi, MD Jumia Kenya said, “We are committed to providing a stress free shopping experience for Kenyans, the new hub is part of our ongoing efforts to enhance service and meet customer demands with speed and efficiency.”

With the hub’s close proximity, the company will now offer free deliveries for products above ksh. 5000 while those below the amount attract a shipping fee of Ksh. 200 within Mombasa. Customers will also have the option to pay cash on delivery for products purchased.

Kenya’s leading online retailer Boosts Local Fashion Designers

Nairobi Kenya, 1^st October 2014 The willpower to succeed in times of economic struggle is what has driven local fashion designers to sell online. JUMIA, Kenya’s leading online retailer has become the most preferred website for local designers to showcase their fashion brands gathering emerging and established designs into one single platform in what is a Kenya’s first.

Dozens of local brands such as Afro Shoes, RIRI African Designs, Johari Designs, Kazuri Beads and House of Hadassah have added their names to the over 100 brands.

Afro Shoes

“Exposure to an enormous regular shopping crowd, warehousing, marketing, handling of customer queries and delivery is all done for you,” Said Priscila Muigai one of the designers selling online, “and With Jumia taking a 25% commission on sales, the profit margins are high and the experience stress free

RIRI African Designs