In recent years, the activities of e-commerce companies have opened up growth opportunities for individuals and businesses, as corporations and SMEs partner with ecommerce brands to increase their sales and further expand the frontiers of online sales and services in the country.
One of the SMEs leveraging these e-commerce opportunities is Nano Strix, a 3PL logistics company based in Abuja. The company entered a partnership with Jumia in 2015 to provide third party logistics services, thus becoming the first logistics hub for Jumia in Northern Nigeria.
This was at the onset of e-commerce in the country, with a lot of reservations and skepticism about feasibility of the services. “When we first started with Jumia in 2015, we were the first pilot hub in Northern Nigeria. We started this in ecommerce infancy in Nigeria. When we first started, the package volume was low and it had to do with slow user adoption of ecommerce. People didn’t necessarily trust puting their debit cards online. people didn’t necessarily trust that what they placed an order for would come.
Over time, Jumia has built a name for itself where we now see a more positive trajectory in the industry. People are now more trusting of the services Jumia offers, putting their credit cards or debit cards online ordering items without the fear of being stuck with something they don’t like or expect,” explained Nano Strix CEO, Mohammed Maikudi.
For Nano Strix, it has been a journey of knowledge acquisition and growth with Jumia. According to Maikudi, partnering with the ecommerce firm has helped grow the business, created job opportunities, provided capacity building and technical support which has gone a long way in bringing the staff into the digital age.
“Our package volumes have started to increase over time, allowing us to employ more staff, provide more benefits to our staff and actually bring in our staff into the fold. For example, our volume has increased to a point now where we allow staff to bring into our own 3PL fleet, so everyone benefits from it,” He said.
Jumia’s logistics network occupies an important space in the logistics ecosystem in Nigeria. Jumia’s investment in the logistics sector has boosted hundreds of independent logistics companies by incorporating them into the Jumia logistics network. The impact of this on SMEs has been immense. To further extend its impact on SMEs, the company opened its logistics network to businesses outside its marketplace. During the pilot conducted in 2020, Jumia shipped almost half a million packages on behalf of more than 270 clients.