This archive report was first published on 7 September 2019.
As of 2019, only 1% of Kenyans buy goods online, with the rest preferring physical purchases. However, there are signs of growth, with 10% of smartphone sales in the country done online, according to Jumia statistics.
With 455 million active internet users out of a global population of 1.2 billion, and 100 million people visiting the Jumia E-Commerce website in Africa last year, there's potential for growth in Kenya's E-Commerce sector.
Speaking at the E-Power forum, Jumia Kenya Managing Director Sam Chappatte noted that the low number of online sellers is stalling the growth of E-Commerce in the country. He encouraged entrepreneurs and manufacturers to put their products online and reach a larger scope of customers.
With Jumia's plans to open hubs outside Nairobi where SMEs can sell their products, entrepreneurs from all around the country can now venture into E-Commerce. Putting products online is also cheaper than setting up a physical shop, requiring only a warehouse to store products.
Developed countries like China and the US have a 20% E-Commerce penetration, while Kenya is still at 1%. This leaves much room for improvement and learning for entrepreneurs venturing into E-Commerce today.
As the market grows, E-Commerce websites are providing deals and discounts, which are likely to reduce once E-Commerce becomes a more significant player in the market.
For instance, Jumia takes a minimum of a 5% commission on every sale of a product made on their site, with a 50% commission reduction for locally manufactured products.
