Wasoko’s last-mile delivery network significantly impacts the informal retail sector in its markets, helping local retailers access fast-moving consumer goods (FMCGs) quickly and reliably. This network provides free same-day delivery of essential goods and financing to over 142,000 informal African retail stores, enabling retailers to order products at their convenience via SMS or mobile app. Our logistics network is helping to overcome many logistical challenges historically associated with the informal retail sector, formalizing the trade sector with over $234m in yearly sales across the continent.
As a model designed to address some of the key challenges that informal retailers face in accessing goods and supplies, it ensures informal retailers have:
- Greater convenience: A key benefit to Wasoko’s last-mile delivery is that it significantly reduces the time and effort required by retailers to order goods and restock their shops. Traditionally, informal retailers have had to travel long distances to wholesalers or distributors to purchase products, often spending significant amounts of time and money on transportation. With Wasoko’s delivery network, retailers can now place orders via an SMS or mobile app and have them delivered directly to their shops on the same day, saving them time and transportation costs.
- Improved product availability: With our last-mile delivery model, retailers can access a broader range of products than they would have otherwise. This helps them to diversify their inventory and meet the changing demands of their customers, improving their sales and profitability. In addition, due to Wasoko’s stringent quality control processes, retailers are assured of the quality of the goods ordered.
- Reduced risk of stockouts: Wasoko ensures that retailers can keep their shelves stocked with goods, reducing the risk of stockouts and lost sales. This is especially important for retailers who may not have the financial resources to maintain high levels of inventory. Our business model utilizes a Pay Later financing strategy that allows informal retailers to purchase essential items at market-competitive prices without having to worry about financial constraints. Over 5000 customers are now able to get more products with this working capital financing model, allowing their overall margins to increase.
Overall, by improving the availability, affordability, and quality of goods, we are empowering the informal retail sector and helping to drive economic growth in local communities. Wasoko works directly with manufacturers and wholesalers to source goods at the best possible prices, which allows them to pass on savings to their customers. Our mobile platform and the last-mile delivery network have improved the number of active retailers from 93k in 2021 to 142k in 2022, leveling the playing field for informal retailers in an otherwise competitive e-commerce environment.