by Seun Obatuyi
Just like most other online shopping sites in Nigeria, Jumia, Konga, Kaymu and OLX sell to consumers. But where the products come from is not exactly the same for all of them.
There are 2 Possible Online Shopping Models: Online Store or Online Marketplace
There are majorly two major online shopping models any shopping site can use.
Conventional Online Store Model: Jumia and Konga are Similar
The first method is the conventional online store model; a shopping site sells to buyers from its own inventory of products. This gives the online store more control over pricing, it can issue out vouchers quite flexibly, update prices for its promos and work with brands more effectively. The fact that Jumia and Konga both typically run the conventional online store model is what makes them similar. Other shopping sites that use the conventional online store model include Payporte and Kara. Kaymu and OLX are not online stores.
Although both Jumia and Konga have now incorporated aspects of the second model we’re about to discuss, but for sake of simplicity they are still more of this first model than the second.
Kaymu and OLX are Similar Because They Run the Online Marketplace Model
The second method is called the online marketplace model. Online shopping sites that run this model do not have their own inventory of products. Instead, they are platforms on which one person can sell and another person can buy. The seller places an ad on the online shopping site, keeps his own stock wherever he wants to, and when a buyer signifies interest in the product on the website, an arrangement is agreed among the three partners (the seller, the buyer and the website) as to how the product is delivered.
An online marketplace does not have to keep an inventory of products, and it is free of the burden of keeping count of the stock of products in its warehouse. Its products can’t be pilfered by employees. The fact that they are both online marketplaces is the similarity between Kaymu and OLX.
What’s the Difference between Kaymu and OLX?