Packaging Material Costs

Packaging Material Costs

In order to have scalable operations, 3 months ago we introduced full package shipping (and refused to accept item drop offs) as a measure to speed up order processing and optimize space at the hubs. This allowed us to expand our vendor facing staff and, as a result, VDO capacity increased by 50% and wait time reduced by 50%! This would not have been possible without moving away from item drops offs.

 

In the process however, we made a concession and decided to subsidize the packaging material costs by up to 60% versus the market price. Given the ever increasing number of orders, as well as opportunist brokerage behavior (some vendors are buying these materials and reselling them at market price to others), this is no longer sustainable to us. Therefore, we will increase the price of the packaging materials to match what we are paying for them.

 

Packaging material costs

Material description

Type

Unit of Measure

Unit cost Previously (KES)

Unit cost started August 15th 2018 (KES)

Plastic Flier - Extra Small

Fliers

Pc

3

5

Plastic Flier - Small

Fliers

Pc

4.5

8

Plastic Flier - Medium

Fliers

Pc

6

9

Plastic Flier - Large

Fliers

Pc

9

14

Packaging Box - Small

Cartons

Pc

18

18

Packaging Box - Medium

Cartons

Pc

27.9

42

Packaging Box - Large

Cartons

Pc

46.2

70

Jumia branded Tape 100m

Cello tape

Pc

65

137

Non Branded Tape (Clear) 50M

Cello tape

Pc

47.5

55

Bubble Wrap 1 roll *100m

Bubble Wrap

Roll

6750

8120

Bubble Wrap 1metre * 1metre

Bubble Wrap

Meter

67.5

82

Stretch wrap 500mm *20mic (4.5 kgs)

Stretch Wrap

Roll

1589

1590

Bubble mailer - Extra Small

Bubble Mailer

Pc

3

6

Bubble mailer - Small

Bubble Mailer

Pc

3

7

Bubble mailer - Medium

Bubble Mailer

Pc

3

8

Bubble mailer - Large

Bubble Mailer

Pc

3

13