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 |