Jumia Leverages Chinese Merchants and Local Logistics to Outsmart Temu and Shein Across Africa
Jumia is tapping Chinese vendors and expanding local logistics to strengthen its lead as global rivals push into African e-commerce.
Jumia is reinforcing its marketplace with a fresh influx of Chinese sellers, part of a wider strategy to stay ahead of Temu and Shein in African e-commerce. The company has been onboarding thousands of merchants from manufacturing hubs such as Shenzhen.
The move expands product variety and lowers prices, key demands among price-sensitive shoppers in Nigeria, Côte d’Ivoire and other core markets.
Executives say Chinese suppliers are drawn to Jumia as U.S. tariffs reduce their margins in North America. With American demand softening, many are diversifying to new geographies. Africa’s underserved consumer base has become a viable alternative.
Jumia is positioning itself as a gateway for those exporters. It offers a route into African markets without requiring them to build local operations. Inventory is shipped directly to Jumia warehouses, where it’s distributed through its in-house logistics arm.
The pricing effect has been immediate. Items such as shoes and small appliances now list for under $10 in many cases. That aligns with the spending capacity of Jumia’s average customer, who earns between $200 and $500 per month.
The marketplace’s gross merchandise volume in Nigeria rose 36 percent year-on-year, even after Temu’s arrival in 2024. Temu spent heavily on marketing and offered free nationwide delivery, but later scaled back those promotions.
Jumia’s nationwide logistics network gives it a cost advantage in remote cities such as Maiduguri. Delivery costs in those areas can be prohibitive for platforms relying on third-party shippers.
The company also maintains cash-on-delivery as a standard payment method. That contrasts with Temu’s prepaid model, which has seen slower adoption in regions where trust in online transactions remains low.
Local presence is another differentiator. Jumia operates physical offices and customer support teams in its major markets, a factor that helps build user confidence.
Chinese vendors are not new to Jumia, but earlier efforts lacked standardization across countries. Since 2022, the company has streamlined onboarding, compliance and fulfillment processes to reduce friction for foreign sellers.
Jumia does not require exclusivity from these merchants. Many list their products on multiple platforms. The platform’s pitch focuses on profitability, ease of doing business, and sales volume.
So far, local African sellers have not been crowded out. In fact, Jumia reports increased traffic and sales across the board. The broader assortment has boosted the marketplace’s relevance, attracting more users.
Jumia is also deploying AI tools internally. Customer support is increasingly automated using AI bots that handle common queries such as order status. Software engineers are using AI to speed up development and code reviews.
These automation efforts are reducing headcount needs in some departments and improving productivity across the board.
For now, Jumia’s bet on Chinese supply and localized infrastructure appears to be paying off. Whether it will be enough to hold off global rivals over the long term remains an open question. But the company has made clear that it plans to compete with the same tools that made Temu and Shein successful — only on African terms.
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