Major global shipping company, DHL, has expanded its e-commerce platform, Africa eShop to 9 additional markets in Africa. The DHL Africa eShop app which went live in April is set to compete with the popularly acclaimed African online market, Jumia.
Africa eShop has local fintech startups as part of its payments methods. African payments services like M-Pesa (Kenya) and Paga (Nigeria) are part of Africa eShop’s payments options.
Africa eShop is going to take advantage of DHL’s existing delivery structure in Africa. You’ll be able to get your ordered goods at your doorstep through its DHL Express courier service.
Through the partnership with MallforAfrica, there are a number of top retailers on Africa eShop, including Best Buy and Macy’s.
Alibaba, another online marketplace, is also talking expansion in Africa though it is already available in some African countries. At the moment, Alibaba has not done a full penetration on the African continent.
A major advantage coming from Africa Shop will be its transaction costs. This is because the platform is obviously connected to one of the world’s biggest shipping companies and it wants to compete other online shops who have already gained roots on the continent.
The DHL Africa eShop, at the moment, is also providing the same things Jumia is already selling. This creates an additional option for overlapping product categories: phones, health, beauty, gaming, fashion, tablets, home, etc.
Also, Africa eShop will bring more price competition to the African online markets. In countries it is operating with Jumia, Africa eShop is going to give consumers better prices. Those countries are Cameroon, Ghana, Ivory Coast, Kenya, Nigeria, Rwanda, Senegal, South Africa, Tanzania, and Uganda.
For now, Africa eShop is operating in 20 African countries. Included are: Bostwana, Cameroon, DR Congo, Gabon, The Gambia, Ghana, Ivory Coast, Kenya, Madagascar, Malawi, Mauritius, Mozambique, Nigeria, Rwanda, Senegal, Sierra Leone, South Africa, Tanzania, Uganda, and Zambia.
DHL’s move to introduce Africa eShop to more African countries comes a month after Jumia, which is the biggest online market in Africa, went public. Jumia is operating in 14 African countries so far.
Right now, DHL Africa eShop is touting itself as “Africa’s Largest Online Shopping Platform” whiles Jumia says its “platform is the largest e-commerce marketplace in Africa”.