By: Fumnanya Agbugah – Ezeana
World leading logistics company, DHL, on April 11, 2019, launched DHL Africa eShop, an e-commerce application for global retailers to sell goods to Africa’s consumers market. The app brings more than 200 retailers from the United States of America and United Kingdom to an online platform present in 11 African markets which include South Africa, Nigeria, Kenya,Ghana, Rwanda, Botswana and Uganda.
According to TechCrunch, DHL Africa’s eShop will operate using a white label service, Link Commerce owned by shopping startup MallforAfrica. The white label usually refers to a product or a service that is produced by a company and can be sold and rebranded by another marketer, business owner or entrepreneur to make it seem like it belongs to them.
While the company that owns the white labelled product focuses on the technical jargon, a person purchases on a white-labelled service, avoiding the hassle and general stress that comes with learning how to build a solution with little to no knowledge. Same goes for the business owner who can now allocate time and resources to building a solid market plan and connecting with customers, according to a post by FlutterWave.
In addition to MallforAfrica, DHL will also partner with several payment companies, including Nigeria’s Paga and Kenya’s M-Pesa. The company will leverage its existing delivery structure on the continent to get goods to the doorsteps of its clients through its DHL Express shipping, tracking and courier service.
In a statement, DHL Express CEO for Sub-Saharan Africa referred to the DHL Africa eShop app as something that “provides convenience, speed, and access to connect African consumers with exciting brands.” However, the launch of the app will affect Africa’s e-commerce space greatly, especially the Nigerian e-commerce industry that is experiencing a lot of challenges. Several platforms have closed shop and Jumia, one of the country’s leading e-commerce platform plans listing on the New York Stock Exchange (NYSE).
Given Africa’s huge appetite for foreign goods, the launch of DHL’s application could also spell doom for the African e-commerce industry because a lot of people will prefer to buy directly from retailers in the United States and the UK rather than buying from the local online stores for fear of buying fake products.
At the moment, the benefit of this deal to MallForAfrica still remains unclear and all efforts to reach the company to provide more insight on this deal proved abortive.
SOURCE: This story was first published by The Nerve Africa