When an eCommerce site starts selling cement on its website, then the saying that ‘desperate times deserve desperate measures’ has not been more truthful than now.
Rocket Internet’s Jumia might be taking more desperate measures to shore up the dwindling revenue problem that has bedevilled the eCommerce business.
Jumia has just announced that it will be partnering with Dangote Cement to start selling cement on its website.
According to the deal, Nigerians and corporate bodies wishing to purchase a minimum of 300 bags of 50kg of Dangote Cement and above can now order on Jumia from the comfort of their rooms at a reasonable price of N2,500 per bag as opposed to how much is sold in the open market and see them delivered to any place of their choice without any extra cost for transportation.
Mogbolu, however disclosed that the purchase would only be within Lagos, Port- Harcourt and Abuja for now.
He said: “Dangote Cement decided to work with Jumia Nigeria based on its credibility and excellent performance over the years in online shopping management”, adding that the new initiative would help arrest the scams perpetrated by online fraudsters who deceived the people by asking them to come and purchase Dangote Cement for N1000 per bag.
“For now, the pilot scheme is live in Lagos, Abuja and Port Harcourt, but we can extend to other cities depending on the level of demand and performance of the new deal”.
“With the deal, Nigerians in need of seamless supply of cement from Dangote can now place order and pay online and wait for the delivery in record time from any of Dangote’s nearest cement plant to Lagos, Port Harcourt or Abuja.
“We are starting with Minimum Order Quantity (MOQ) of 300, 600 and 900. We may increase depending on demand surge as time goes on,” Mogbolu explained.
Speaking on the deal too, Chief Executive Officer of Jumia Nigeria, Juliet Anammah said the deal with Dangote Cement is part of efforts to deepen service delivery on Jumia Nigeria online platform.
She said she was of the belief that the deal will be beneficial to all parties involved and deepen further online shopping in Nigeria as obtained all over the world.
For those who are keen on jumping on this deal, bear in mind that it will be a prepaid service.
This is because there is a new normal in Nigeria’s eCommrece business. Last week, While Konga, Jumia’s arch-rival was laying off more than 70% of its workforce, the company also announced that it will be stopping all pay on delivery orders, stop warehousing and as well charge merchants listing fees for their products.
This service might not be for the retail customer because the minimum order might not be within the reach of the bungalow homeowner or an artisan who needs cement for routine purposes.
The new partnership might also be in direct competition with the business to business sales of cement by Dangote’s internal sales team. While Jumia is bound to gain reasonable revenue over time from this deal, there are more hiccups ahead.
There are also indications that Konga might seal a deal with LafargeHolcim’s Lafarge cement to compete with Jumia.
Moreover, any desperate measures taken by these companies might end up justifying itself should the selling of cement increase their margins and maybe reduce their record losses.