Konga Drops Payment-On-Delivery, Lays Off Staff

Nigerian e-commerce online mall, Konga drops payment-on-delivery and lays off over 300 staff in an ongoing restructuring exercise.

Konga Drops Payment-On-Delivery

Konga Nigeria says that they have taken the decision to do away with cash-on-delivery as part of efforts to become “more efficient and to focus on the orders that consumers really want”.

The online mall company says that it transformed to a prepay only platform in mid-November 2017. It says there has been a solid shift towards online payment by customers. “Since we switched over, we have seen a marked increase in online payment,” said Konga CEO, Mr Adekoya.

Staff Layoffs

Konga’s official statement also stated that the current restructuring means that their “operating costs will be lower” and will mean doing away with warehousing activities. As such, a layoff is in the works. The statement did not specify a number, but Quartz Africa reports that the layoff affects 300 members of staff – around 60% of Konga Nigeria’s total workforce.

The Good And The Bad As Konga Drops Payment-On-Delivery

It is cheering news that Konga is scrapping payment-on-delivery and has become a prepay only platform. I have been an active advocate for the scrapping of the payment-on-delivery practice, and it is good to see Konga bell the cat. There has been a lot of hype about Nigeria’s “e-commerce” sector, when in reality most of the payments have been via cash – on delivery.

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Payment-on-delivery has hurt the development of the industry. It hurts e-payment platforms that have invested heavily in powering the digital economy. Cash-on-delivery hurts e-commerce platforms by increasing inefficiency and business operational costs. It also hurts consumers who have to pay to cover those overheads and deal with the more inefficient processes.

Sad as the decision to layoff staff is, this is not strange. Every time a business entity adopts more of digital technology, staff hitherto involved in phased out activities have to go. Konga doing away with warehousing operations means that a sizable number of warehouse/logistics hands have to go. Hopefully, some of them will find a ready spot in the numerous startups springing up on every side.

Konga commenced operations in July 2012 as an online store with investments in inventory and infrastructure, and later evolved into an online mall.

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Konga Drops Payment-On-Delivery, Sacks 60% Of Workforce
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Konga Drops Payment-On-Delivery, Sacks 60% Of Workforce
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Nigerian e-commerce online mall, Konga, has announced a restructuring of its business that includes the scrapping of payment-on-delivery, as well as a massive layoff of staff.
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MobilityArena
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4 thoughts on “Konga Drops Payment-On-Delivery, Lays Off Staff

  1. This is good! The POD really isn’t best for our growing digital economy. Nigerians are animals, they had and will continually carry out unscrupulous acts in the name of POD. IMO, this is good news. Jumia should follow soon!

  2. POD has its advantage ooh, u reject instantly at point of delivery any item that fails your quality control or u ve a change of mind without waiting for protracted period of getting ur refund

    1. I quite agree with you. Sometimes you order for one thing and they deliver something different. I believe POD is still the best option

  3. This is a bad development. This is the end of Konga in Nigeria. So I buy an item for 5k on Konga, pay online, wrong or defective item delivered and rejected. Dispatcher tells me to call customer care. I start wahala for 5k? Who has the time. Rubbish!!!

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