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Nigerian Online Retailers Cut Back On Free Shipping Services

Nigerian Online Retailers Cut Back On Free Shipping Services

Nigerian Online  retailers such as Jumia.com and Konga.com are cutting back on the free shipping services in a move that could see them stop the offer completely to help them cut on operation costs, the Vanguard reported.

Many ecommerce companies operating in Africa face challenges when it comes to delivering their products to customers due to lack of proper infrastructure in most parts of the countries they operate making it costly to distribute goods.

The country’s largest ecommerce site Jumia is said to have restricted free shipping to Lagos ad for purchases worth more than 10,000 Naira ($60), while its nearest competitor Konga.com ended free shipping entirely at the end of April 2014.

Both firms had started by offering free shipping across the most populous country, but soon scaled back to focus on Lagos customers.

“The key here is that the service has to be valuable enough to the customer that they are willing to pay the price for it. If that is not the case, the customer will look for more affordable alternatives,” said Raphael Afaedor, an industry expert and Co-founder of Supermartng.com.

konga’s Head of Marketing, Gabriel Gab-Umoden said the company will continue free shipping national wide as a promo for the month of June, but after than it will limit offer for Lagos only.

“After the promo, we plan to continue to offer free delivery on orders in Lagos [only],” Gab-Umoden told Vanguard.

“Our pick-up centers now serve as drop off points for the many merchants that sell on our platform. This business decision was made so we can offer our merchants an extra avenue to drop off their items for quick delivery to customers. The ‘Drop off points’ will still tend to customer queries/ general assistance as needed.”

Another online shop that specializes on cosmetics, Girlyessentials.com, said it would start charging 700 naira ($5) for deliveries around the Lagos and an additional delivery fee for areas further away from the central business district. It also said that shipping to all states in Nigeria will cost N2, 500 except where a customer opts to pick up items at ABC terminals available only on fifteen destinations, then N1, 500 will apply.

Fashpa.com, an exclusive online fashion merchant, said it undertakes free shipping but only for orders above N5, 000 and within Lagos only.

“All orders of products in Lagos over N5, 000 qualify for free shipping while orders outside of Lagos over N15, 000 will be charged a flat fee of N1, 950,” Fashpa states on its website.

Other online retailers such as Africdeals.com only offer free shipping on particular items.

Afaedor  however said this did not mean the online business service providers will not survive in Nigeria, since they still offered great value to shoppers.

“Overall, online shopping also makes it easier for people to easily discover products which they would otherwise not have had known they could buy locally. I think that will also be a powerful driver for people to shop online irrespective of delivery fees, so long as the delivery fee is reasonably priced,” he said.