"Delivery is the primary barrier to completing an ecommerce sale in Africa, with high return rates across Nigeria and Kenya leading to significant logistics costs for merchants."
"Logistics firms are integrating tools like OkHi's AI-powered verification to solve the landmark address problem, allowing customers to verify their location at checkout."
"Automated communication via WhatsApp is triggered for flagged orders, redirecting them to local pickup points for customers who do not respond."
"Jumia's financial statements reveal a 12% year-over-year reduction in fulfillment expenses per order, attributed to a shift towards PUDO locations and the JForce network."
Delivery issues significantly impact ecommerce sales in Africa, particularly due to landmark-based addresses and consumer preferences for payment upon receipt. High return rates in countries like Nigeria and Kenya result in merchants incurring logistics costs without revenue. To address these challenges, logistics companies are adopting technology solutions, including data-driven delivery predictions, address verification tools, risk scoring systems, and automated communication via WhatsApp. Jumia's financial success demonstrates the effectiveness of these strategies, particularly through its shift to PUDO locations and the JForce network of local consultants.
Read at Practical Ecommerce
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