Hello, everyone.

Sorry for the length. If you shopped online at Jumia/Konga, did you pay online before your order was deliver? Why/why not?

So I keep reading about Jumia, Konga, and all these new ecommerce plays popping up in Nigeria. But I was under the impression bank penetration is low, card/internet banking penetration is low, and even if people have cards/online banking accounts, the vast majority of people still use cash for e-commerce (which is almost an oxymoron for me but that's besides the point). I think Jumia/Konga personnel have said in past interviews that their orders are mostly cash on delivery.

Pretty interesting topic so I thought I'd put it to the Nairalanders and see what you guys think. I guess I'd like to hear views on this generally. If you've paid for an order on Jumia/Konga before did you pay in advance with card/internet banking/quickteller or cash on delivery? Why? What do you think are the key things preventing those that have bank accounts/online banking/cards from paying online? Does the threat of fraud/insecurity still loom large? Is it not a fraud/thing thing but more of a trusting Jumia/Kong to deliver and deliver the right product thing? Is it that even if all cardholders paid online, penetration is so low that that doesn't really make a big impact?

I know we celebrate Jumia/Konga/and all but I'm thinking it must be pretty hard to do cash-based ecommerce at scale sustainably. I know both companies are in growth stage <5yr old, but nonetheless both are also not (yet) making so much profit (I believe). And if you contrast with ecommerce in other markets, Amazon for instance, a big boost to the business model is getting paid online by customers before having to pay suppliers (e.g., Google "Amazon + negative operating cycle".

Lastly I also wonder if it because of fraud but if that's the case why do Nigerians engage on Ponzi schemes and pay into people's account they don't even know but are not ready to do so for products they want. Is it a case of misplaced priorities?

Sorry for the length, but super interested to know thoughts and experiences. Thanks!

Cc: Lalasticlala, Seun

this is so on point

When i use the p.o.s or whatever online means and the money "hangs in the air",what will i tell the Konga or Jumia delivery guy? If u are not collecting cash on delivery,egbon delivery guy,return ur goods back

EbukaHades10:
When i use the p.o.s or whatever online means and the money "hangs in the air",what will i tell the Konga or Jumia delivery guy? If u are not collecting cash on delivery,egbon delivery guy,return ur goods back

Why not pay before delivery then