Nigeria: Konga reintroduces payment-on-delivery

Nigeria: Konga reintroduces payment-on-delivery

Months after announcing it would no longer facilitate payment-on-delivery, Nigeria's e-commerce giant Konga.com has reintroduced the option effective from August in Lagos and in other regions in September 2018.

The option, understood to be the preferred choice for over 70% of online transactions in Nigeria, was suspended during negotiations over Konga's acquisition by Nigeria's Zinox Group from previous owners Naspers and AB Kinnevik.

Nike Imudia, Chief Executive Officer at Konga, said, "After the acquisition, we have taken our time to restructure and improve our technology and capacity in terms of our own staff and logistics to meet customers' expectations."

"We have invested substantially in our logistics arm to meet the commitments of not just payment on delivery, but also to achieve a minimum of 85% same-day delivery of major products categories across the nation by July 2019."

Some industry analysts believe Konga reintroduced this payment option after reviewing sales data gathered before- and after the suspension.

"Konga's decision to resurrect pay on delivery must have been backed by actual data that shows its sales had plummeted after it scrapped the same policy last year before the company was sold off to Zinox," Biodun Oni, an industry expert told ITWeb Africa.

Oni added that instead of reintroducing the option as it was, Konga could have modified it by only offering it to users that choose to pick up their orders at the pickup locations.

Konga plans to expand its retail network to 100 stores by December 2019, and add 774 stores by 2022.

In February 2018 ITWeb Africa reported the company was acquired by Zinox Group for an undisclosed amount and was subsequently merged with Yudala, a Nigerian composite online and offline retail chain.

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