For all the challenges Konga, Jumia and amalgam of ecommerce companies are having in Africa, the sector remains a promise. Yes, anyone that gets it right will see financial glory. The trajectory to that mountaintop has been frustrating, from the days of Kalahari to Mocality, and now the modern age of Jumia. Yes, despite the bumps, the prize is evident: a $75 billion opportunity just five years away. That is why the battle will continue.
But as you examine the competition, one of the best ecommerce companies in Africa which remains largely unknown is DHL Africa eShop. It has zero risks and will make guaranteed profits on all sales. It has none of the marginal cost problems the typical marketplace ecommerce companies have. That is why in less than six months, it is operating in 34 countries.
More so, it focuses on those customers that are buying things from outside the continent. That is really where you want to be: you go where the money is. Those customers are open to pay DHL fees to help them deliver trusted items to their homes and offices.
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As you plan to get into this game, understand one thing: if DHL eShop is offering that service, the incentive to shop in your local marketplace might have been disintermediated because the potential customers can buy from American Kohl’s, Macy’s, etc and have all delivered by DHL. If this business does not have the name “DHL”, it ought to be seen as the best ecommerce startup in Africa today. Of course, without the DHL tag, it would not have expanded as fast as it has done.
DHL has called the the business outcome a “rapid success”; I believe that pronunciation. It is simply taxing shoppers for no single risk. You pay for the items, it picks the items and delivers to you for a mark-up. It has no inventory. It does no cash-on-delivery. Simply, this is the real deal even though its market segment may be small. But that is where the money is. On pure play revenue, it may make sense to focus on the top 10% than the bottom 90% on ecommerce in Africa.
DHL is playing at the sweetest spots, and the results are amazing: “user uptake on the DHL Africa eShop app has been remarkable over the last five months, not only from the number of downloads, but just as importantly, from an order perspective”
The DHL Africa eShop app offers African consumers unprecedented access to international retailers on an easy-to-use platform, with great convenience and speed. It also enables many global brands to connect with a captive African market. The DHL Africa eShop enables African customers to shop directly from over 200 US- and UK-based online retailers, with purchases delivered to their door, by DHL Express. This solution was developed in partnership with Link Commerce – a division of Mall for Africa.
He adds that while Africa’s ecommerce market is still lagging behind the rest of the globe in terms of annual turnover, it may well make significant strides to catching up in the near future. “A report by Statista reveals that e-commerce in Africa was valued at $16.5 billion in 2017. McKinsey adds to this calculation by predicting that this value could potentially reach $75 billion by 2025.”
Read full press as DHL unveils the 34 countries
Platform introduced to an additional 14 countries across Sub Saharan Africa; Growth of online retail driving DHL Africa eShop’s rapid success
Since its initial introduction in April of this year, the DHL Africa eShop app has seen its user base grow rapidly, and within the first three months of operation, it had already been rolled out to 20 countries across Sub-Saharan Africa (SSA). DHL Express announced this week that the innovative mobile and desktop platform is now available in 14 additional countries across the region. This increases the platform’s reach to 34 countries across SSA.
Hennie Heymans, CEO of DHL Express Sub Saharan Africa, says that user uptake on the DHL Africa eShop app has been remarkable over the last five months, not only from the number of downloads, but just as importantly, from an order perspective. This is why we’re excited to launch DHL Africa eShop in Angola, Benin, Burkina Faso, Burundi, Chad, Ethiopia, Guinea, Lesotho, Liberia, Mali, Namibia, Niger, Sudan, and Togo.
“DHL adopted a phased approach for the rollout of the platform on the continent, with the initial launch implemented in 11 countries to test the market’s reaction. Within the first seven weeks, the response from the consumer market was so impressive, that the second phase was initiated – which added 9 more countries to the list. Now we are once again able to build on that momentum, with the biggest single rollout phase so far.”
The DHL Africa eShop app offers African consumers unprecedented access to international retailers on an easy-to-use platform, with great convenience and speed. It also enables many global brands to connect with a captive African market. The DHL Africa eShop enables African customers to shop directly from over 200 US- and UK-based online retailers, with purchases delivered to their door, by DHL Express. This solution was developed in partnership with Link Commerce – a division of Mall for Africa.
He adds that while Africa’s ecommerce market is still lagging behind the rest of the globe in terms of annual turnover, it may well make significant strides to catching up in the near future. “A report by Statista reveals that e-commerce in Africa was valued at $16.5 billion in 2017. McKinsey adds to this calculation by predicting that this value could potentially reach $75 billion by 2025.”
As the global leader in express logistics, DHL is well positioned to connect African consumers with these exciting global brands. “We are committed to driving e-commerce growth on the continent for etailers as they work to expose their brands to international markets and also for consumers, who want easy access to global brands,” concludes Heymans.
DHL is celebrating the launch of the new countries with a promotion of $20 flat rate shipping for up to 5 items from over 100 US/UK selected sites to all DHL Africa eShop countries. The promotion is limited to Clothing and Accessory items only, and buyers need to use coupon code CELEBRATE when completing their order.
LinkedIn Summary
I can say that one of the best ecommerce companies in Africa today is DHL Africa eShop. It is harvesting the best ecommerce shoppers and serving them at practically zero risks. That is why it has expanded into 34 countries within six months. Of course, it has DHL on its name. But do not be confused – this firm is one of the reasons ecommerce marketplaces are struggling.
If you can buy from top American brands, and a trusted brand can bring it home, from America, you may not bother to check local sites. They call it disintermediation. DHL is celebrating this “rapid success” as it marches for that $75 billion prize in African ecommerce by 2025.
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