Accelerating E-Commerce Growth in Smaller Towns in Nigeria through Pickup Stations network

E-commerce has transformed shopping across Africa, providing convenience and variety to consumers. While major cities have embraced online shopping, smaller towns still face unique challenges, including infrastructure limitations, cultural buying behaviors, and financial constraints. Despite these obstacles, Jumia is strategically expanding its reach, ensuring that e-commerce becomes accessible to all Nigerians, regardless of location.

Overcoming Infrastructure and Cultural Challenges

One of the most significant barriers to e-commerce penetration in Nigeria’s smaller towns is the state of the road network. Poorly developed roads, especially during the rainy season, make transportation difficult, leading to delays in deliveries and even vehicle breakdowns. These road conditions not only slow down deliveries but also increase operational costs. A truck breakdown due to bad roads can disrupt schedules, affecting customer satisfaction. Beyond infrastructure, there is also a cultural challenge. In smaller communities, where trust and personal relationships heavily influence purchasing decisions, online shopping is still met with skepticism. Many people in these towns prefer buying from a store owned by someone they know rather than ordering online, making e-commerce adoption slower than in urban centers.

JForce Agent and Consumers in Bwari, Nigeria

To address these challenges, Jumia has implemented strategic solutions that turn obstacles into opportunities. The introduction of JForce agents, local representatives who educate and assist customers with online purchases, has played a crucial role in building confidence in e-commerce. Additionally, Jumia offers a pay-on-delivery option which provides reassurance especially to first-time buyers. By allowing customers to pay upon delivery, the company is addressing the fear that products ordered online may not arrive or meet expectations.

The Power of Pickup Stations

One of Jumia’s most effective strategies in addressing last-mile delivery challenges is the establishment of pickup stations. These serve as physical locations where customers can collect their orders, offering a “click-and-collect” experience. Pickup stations allow Jumia to put a face and a physical location to the business. These stations operate as mini distribution hubs, eliminating the need for expensive home deliveries in areas where addressing systems are unreliable. 

Beyond logistics, pickup stations help build trust within communities. By providing a physical presence, Jumia reassures customers who may be hesitant to shop online. Customers get to see their products before completing transactions. Additionally, many pickup stations are staffed by locals, creating a familiar and trustworthy environment.

Jumia Pickup Station

Impact on Communities and Customers

Jumia’s expansion into smaller towns goes beyond business growth, it has a significant social and economic impact. By creating job opportunities through pickup station operations and JForce agents, Jumia supports local economies. Additionally, increased access to a wide range of products improves consumers' quality of life, providing affordability and convenience.

Several communities have experienced notable transformations due to the presence of Jumia’s pickup stations. For example, in Ogijo, a small town in the outskirts of Ikorodu, local residents have benefited from easier access to essential goods, while Jumia has seen growth by four times. Similarly, in cities like Benin, Apata, Okene, and Yenagoa, the company has seen an increase in e-commerce adoption month-on-month. In northern towns like Kaduna, the introduction of pickup stations has encouraged more residents to embrace online shopping. These pickup stations are not just logistical solutions, they are catalysts for connecting underserved communities to new opportunities.

Customer at Jumia Pickup Station

Looking Ahead

The experience Jumia has gained in penetrating smaller towns has provided key insights. Localization is essential, as understanding community needs and preferences ensures a smoother e-commerce adoption process. A physical presence builds trust, with pickup stations and local agents playing a crucial role in reassuring customers and improving retention. Moreover, adaptability drives success, by tailoring payment options and delivery methods to suit local habits, Jumia can continue to accelerate e-commerce growth in these areas.

Jumia’s commitment to bridging the gap between modern e-commerce and traditional community-driven trade is evident. With continued innovation and localization strategies, the company is well on its way to making online shopping a seamless and trusted experience for all Nigerians.

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Carlos Otu

Chief Supply Chain Officer, Jumia Nigeria

Carlos began his career as a Business Support Trainee at DHL Express and exhibited exceptional dedication and diligence, rising to the position of Country Head of Sales and Marketing. He later joined Jumia Ghana as Country Head of Sales before quickly advancing to Country Manager - Supply Chain. Recognized for his transformational leadership, Richmond took on the role of Supply Chain Country Manager at Jumia Nigeria, where he has been pivotal in Jumia Group's expansion in the region.

Richmond holds a Postgraduate Extended Diploma from Cambridge International Qualifications and an MBA in Logistics, Materials, and Supply Chain from Westford University College. He also has acquired several DHL certifications in International Forwarding and Commercial Management.