I. Pricing Composition of SEKO Dropshipping (DS) and Postal

Jumia's DS mode includes SEKO DS and Postal. Its pricing composition of SKU is as follows:

| S/N | Composition | Detailed description | | --- | ---------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | 1 | Cost of SKU | The cost of SKU is controlled by the seller | | 2 | Profit of SKU | The profit of SKU is controlled by the seller | | 3 | Domestic freight | The cost of sending DS SKUs to the sorting center by sellers | | 4 | International freight | The cost of sending SEKO DS and Postal from the sorting center to Africa by air. The calculation method for international freight of SEKO DS and Postal is the same. | | 5 | Cost of delivery failure rate | If the order fails to be delivered,inbound fees and storage feeswill be incurred | | 6 | Cost of return rate
| If an order is returned, the inbound fees and storage fees of FBJ and the subsequent outbound fees of the order are included in the cost of return rate (the average return rate of the platform is 2.8%, and the seller can make corresponding adjustments according to the actual return rate in the actual calculation). | | 7 | Platform commission | Clickhereto view commission breakdown (effective date: September 1, 2022) | | 8 | VAT | VATs are only charged in Côte d'Ivoire and Senegal |

Marketplace price = (Cost + profit + domestic freight + international freight)*(1+ return rate)/(1- commission ratio) *exchange rate

• After pricing, click the exchange rate change table to convert it into local currency
• Due to the small currency value of Nigeria and Côte d'Ivoire, sellers are advised to take 0 as single-digit when pricing
• The upper price limit of the site in Morocco is 120 USD and Côte d'Ivoire 80 USD DS pricing calculator

II. Pricing Examples of DS SKUs

Taking the pricing of DS SKUs for mobile phones in Nigeria site as an example, if the weight of a DS package of a mobile phone item in Nigeria site is 0.1KG, its cost and profit are $10, the current exchange rate is 1150NGN, and it costs the seller 2 RMB to send it to the sorting center, the pricing logic of the item is as follows without considering delivery failure and purchased value-added services:

| Country | Cost + profit | Domestic freight | International freight | RR | Commission | Marketplace price | | ------- | ------------- | ---------------- | --------------------- | ---- | ---------- | ----------------- | | Nigeria | 10 USD | 0.32 USD | 1.4 USD | 2.8% | 6% | 14739NGN |

**Marketplace price = (Cost + profit + domestic freight + international freight)(1+ return rate)/(1- commission ratio) exchange rate =*（10+0.32+1.4) *(1+2.8%）/(1-6%)*1150=14739 NGN

III. Explanation of VAT

At present, VAT will be charged for successful delivery and the purchase of value-added services in Côte d'Ivoire (IC) and Senegal (SN) (VAT is charged by local country)

In other countries, VAT is charged only for the purchase of Jumia's value-added services.

Value-added services are as follows:

1. Mabaya - Sponsored Products
2. All Other Marketing Contributions - Jumia Mall
3. Jumia Mall Subscriptions
4. Content VAS Translation & Optimization
5. Seller Funded Vouchers
6. Free Shipping Campaigns

VAT in the order is shown as:

VAT on Behalf

VAT rates are as follows:

| Site | VAT (value-added tax) rate | | -------------- | -------------------------- | | Nigeria | 7.5% | | Egypt | 14% | | Kenya | 16% | | Côte d'Ivoire | 18% | | Morocco | 20% | | Ghana | 18.1% | | Senegal | 18% | | Uganda | 18% |

Note: Changes in VAT rates are subject to the policies of various countries.