So, it remains true that retail businesses in Nigeria looking to scale in 2020 should consider Jumia as a primary channel and develop a viable commercial growth strategy to win with it. Behind the curtains, I have found the following strategy and implementation effective for businesses selling on Jumia.

1. Develop a (JOINT) business plan

Great planning precedes great success.

Every new journey needs a map. Top sellers on Jumia have a well-designed joint business plan (JBP) which highlights month-on-month sales goal, in value and volume, average selling price per item, projected page views and average conversion rate to achieve the sales expectations. This is different from the conventional elaborate business plans, it’s a simple excel sheet with your sales projections and the corresponding marketing plans/budget.

To properly figure out what your growth plan should be:

• take a look at the state of your business, particularly your current sales history, pricing strategy, sourcing and inventory plan
• lay everything out in a holistic way to help you identify the areas of improvement that, if rectified, could positively impact your growth

2. Optimize products AND pricing

Right product, right pricing always wins.

Successful sellers on Jumia focus on products that are in demand with potentially healthy revenue and margin. This includes products in frequently purchased categories like fashion, beauty or groceries and hot categories like phones or electronics.

Here are a few tips on product and price optimization:

• Source best sellers — invest in products with a strong selling history, Jumia Market Insight tool may be helpful
• Optimize product content — ensure product keywords match what shoppers use in their search
• Set a scientific and competitive pricing — consider all associated costs to set a selling price that wins you the Buy Now click and gives you a good margin without deterring shoppers

3. Manage your INVENTORY

Never go out of stock on your bestsellers.

Over the years, some Jumia top sellers have discovered what we nicknamed “killer SKUs” (stock keeping units) — bestsellers that sell all year round. Sneakers and waist trainers are few examples of killer SKUs. It’s a sin for these products to go out of stock. Hence, you have to be strategic with your sourcing to avoid OOS on your best sellers or tying down your cash on non-performing inventory (NPI).

To determine how much inventory to have on hand at a given time, you’ll need to assess your sales history — in particular your sales velocity. This will give you a sense of how much product you are selling and at what rate. Not only that, it will show you what times of year are busier than others so you know how to adjust your orders and when.

4. Invest in PAID advertising

Smart marketing works.

No matter what your revenue target and budget will be for 2020, make Jumia Sponsored Products and other value added services a priority. You can decide how much money to put into the service, as their keyword-targeted ads provide a fit for all levels. And because you only pay when your ads are clicked on, it’s really a low-risk, high-reward proposal in furthering your reach.

Consider these tips:

• Market your bestsellers to guarantee great ROI
• Optimize your keywords and product content for sponsored products
• Review the efficiency of your marketing frequently and make adjustments to optimize results

5. Seek EXPERT advice

In the multitude of counselors, there’s victory.

Running a business can be lonely. There will be times when you don’t know who to turn to with your questions, and your support system can feel as small as your shop. My advice: ask for help, and broaden your network to get it. Jumia University is a FREE online resource center to help you with your e-commerce business on the platform, leverage it.

Still, Jumia is only one channel of a comprehensive retail strategy. The paradox in succeeding at your Jumia growth strategy is that it helps you outgrow the Jumia offering. With sufficient brand equity, scale and efficiency, you will require more robust retail solutions.

For a more comprehensive retail strategy, ORIS has a team of e-commerce experts that can guide you to achieve your business goals for 2020 and the decade to follow.