By Providence Ayanfeoluwa

To address infrastructure hurdles in e-commerce, Chief Executive of Jumia Nigeria, Sunil Natraj, has said pickup stations are realistic and effective solution for rural and semi urban players.

He said infrastructure gaps are one of the most significant hurdles for e-commerce players seeking expansion beyond urban centres.

Natraj sad that rural areas often suffer from poor roads and limited/non-existent delivery networks, making traditional door-to-door delivery both costly and inefficient.

He said: “Pickup stations are a realistic and effective solution to these challenges, providing online shoppers with a convenient alternative to home deliveries.”

He added that e-commerce companies can concentrate on establishing central pickup hubs that are accessible to a broader audience, eliminating the need for last-mile delivery, which is often the most expensive and time-consuming part of the logistics chain in rural areas.

His words: “Pickup stations are strategically placed collection points where customers can easily retrieve their orders. Instead of navigating poorly maintained roads or traveling long distances to distant location.

“While infrastructure gaps are major issues being tackled with the advent of pickup stations, another critical barrier for customers is the high and extremely unaffordable cost of delivery which sometimes makes it expensive for customers who live far from major cities to engage in online shopping.

“Pickup stations offer a more affordable solution, rather than being subjected to paying exorbitant fees for home delivery. Customers can access goods at lower prices, and e-commerce companies can offer competitive delivery options without the need for complex last-mile logistics.

“Jumia has embraced this strategy through its City Expansion Initiative, deploying pickup stations in remote areas to expand its reach and impact.

“By positioning pickup stations in key locations, we can overcome the logistical challenges that previously made e-commerce expansion into these regions unsustainable, if not impossible”, he said.