The 2 biggest online shopping websites that we have in Nigeria based on my assumption are Konga and Jumia and this is because they have the most funds, engage in general shopping, already have huge warehouses, have sufficient delivery fleets and were the first to come into the scene.
They are already making big money as major retailers in Nigeria even though they do not have a physical store like Shoprite or Valumart but they have a large number of customers who patronize their online stores.
How do these shopping websites make money? They make money by doing the same thing retailers do by buying items at wholesale prices and retailing to end buyers are retail prices but their business model is different. They only have warehouses for keeping their goods, have an online store where they display them and then deliver to customers who have ordered for them. At times they accept payment in advance for an order but they also accept payment after delivery of the items ordered for. Their business draws a lot of loyalty from people who just like the way they operate.
You as an individual or a company can also make money from Konga and Jumia in a variety of ways and there are 3 ways I’ve found out this is possible.
3 ways to make money from Konga and Jumia:
1. Selling: Both Jumia Nigeria and Konga have an online portal or marketplace that allows people to sell the things they want to Nigerians nationwide for a small commission. All you need to do is register online with them, upload your products and then allow them to do the rest. When people order for your product, Jumia or Konga will notify you and you can then package the product for supply to the customer. You may choose to supply to the customer directly or through their delivery service. One good thing about selling online is that you don’t need to have a physical store where you will be paying rent or settling touts before selling your item. You can just list your products for free and probably just pay a small commission after a successful sale. You just need to be able to provide the goods to the buyer after an order has been made. You should source for items at a low price so as to sell at a profitable price on the marketplace.
2. Referring: This is another way through which you can make money from Konga and Jumia in Nigeria. You can make money by simply referring people to buy things from them. They do this through their online affiliate program. You just need to have an online presence such as your email, social media portal or website to be able to do this. Let’s assume you have a Facebook page, you can use it to tell your friend or followers what they ban buy from them and then earn a small commission when they do so. You will have to include your affiliate links when promoting the affiliate program so that sales made through your referrals will be credited to you. Konga and Jumia pay a commission of about 4 to 11% on sales influenced by their affiliates. Lets assume that your referral purchases an item worth N100,000 from the shopping website, you will earn at least if it’s a 4% commission attached to it. To get started, you just need to register as a Konga affiliate or a Jumia affiliate. Afterwards, you will be given access to affiliate links and banners you can use to refer potential buyers to them. The more people you refer, the more money you are likely to make.
3. Buying and reselling: This is an old school method of making money any Nigerian should know about. In this case however, it involves buying something online from either Konga or Jumia at a low price and then selling it to people that need them at a higher price for profit. You can choose to sell back to people who shop on the Jumia or Konga marketplace or you can sell to people directly. The goal is to get items from Jumia and Konga at a really low price and then sell it when the price appreciates to the market. A good example is during Pre-Christmas promos such as Black Friday on Jumia or Yakata on Konga. During this period, shopping websites like Konga and Jumia normally do promos and prices of their products generally crash. It’s normally a good time to buy and stock your stores. Infact, I have to say that black Friday shopping in Nigeria is the best time to save money when shopping online because prices are at their lowest. You can probably buy a HD TV at a N25,000 and then resell it when prices appreciate to about N30,000 or N35000 and that would automatically give you a profit of N5,000 or more. Shopping websites in Nigeria normally have promos from time to time and prices normally fall annually. You can take opportunity of those times such as Black Friday and then wait to resell your items by maybe February or March. It’s a cool way to make money from Jumia and Konga. Konga refers to their Pre-Christmas sales event as Yakata while Jumia calls their own black Friday.