Even better, the 90 days repurchase rate for our cohort of Q3 ’23 for new customers across all categories has increased by 3 percentage points compared to the same cohort of 2022. While in Q4 ’22, 43% of our orders benefited from consumer incentives, mainly vouchers, free shipping, or direct price subsidies, only 28% benefited from such schemes in Q4 ’23. Second, our share of visits from what we call free channels on physical goods has consistently increased, reaching 49% in Q4 ’23 versus 41% in Q4 ’22. Free channels include customer relationship management, search engine optimization, and direct traffic. This is the result of several quarters of focus on better CRM and SEO execution. And finally, we have secured significant savings. Sales and advertising expense decreased from $16.8 million in Q4 ’22 to $6.2 million in Q4 ’23, and consumer incentives decreased from $5.3 million to $2.5 million.
Most importantly, overall usage trends kept on improving while we maintained low level of marketing expenditure. We expect to continue on the same path in 2024 and reap the benefits of consistent execution on assortments and efficient marketing channels. Let’s now look at recent developments on JumiaPay on Page 9. As explained previously, we have decided to focus primarily on making JumiaPay an effective enabler of our e-commerce business. We are working towards this objective in several ways. First, we are integrating more relevant payment methods for customers to complete their orders on Jumia platforms and continuously improving user experience. For example, we work on reducing the number of steps to validate a payment, reducing processing time and increasing success rates.
Second, we are rolling out JumiaPay on delivery. This feature allows customers to pay digitally upon delivery of their order, thus reducing the need for cash. After successful implementation in Kenya, we are rolling out in Nigeria where we believe that over 50% of transactions could become cashless by the end of the year. These are developments with far reaching consequences, helping us to simplify our operations by reducing the amount of cash that we have to manage. And third, we are developing what we call Buy Now Pay Later solutions in partnership with third-party credit providers to support purchases on our platform. Through JumiaPay, our customers can access consumer finance options offered by third-party partners who are responsible for credit underwriting and loan disbursements.
Such payment methods are already easily available in Egypt and we believe that there is great potential across sub-Saharan Africa to boost categories with high value items such as phones and large appliances. As a result, we have seen constant progress in the share of physical goods transactions paid through JumiaPay from 18.8% in Q4 ’22 to 27.7% in Q4 ’23. We see this evolution as an indicator of the progress made in developing better payment experience for our customers. Total JumiaPay transactions increased year-over-year by 41% in Q4 ’23, driven by an increase in orders on the JumiaPay app, thanks to some promotional activities. JumiaPay TPV is down 10% year-over-year and up 32% on a constant currency basis, reflecting a few variations in Nigeria and Egypt.
I will now hand over to Antoine who will walk you through our financials.
Antoine Maillet-Mezeray: Thanks Francis. Hello everyone. Let’s start with a review of our top line performance. Revenue breakdown. Revenue reached $59.4 million in Q4 ’23, down 2% [ph] year-on-year and up 28% on a constant currency basis. Revenue from first party sales was $26.1 million, up 16% year-on-year and 44% on a constant currency basis. Marketplace revenue reached $32.9 million in Q4 ’23, down 10% year-on-year and up 22% on a constant currency basis. While foreign exchange effects were a significant headwind to revenue performance, we experienced growth in commissions within our marketplace revenue and in first party sales, driven by growth in corporate sales to local and regional retailers, distributors and other corporate buyers in selected countries, primarily Egypt.
Turning now to gross profits. Gross profit reached $37.1 million in Q4 ’23, down 1% year-on-year and up 36% on a constant currency basis. Gross profit as a percentage of GMV reached 16% compared to 15% in Q4 ’22, supported by improved margins and reduced spending on customer incentives and promotions. Let’s now move to cost where we continue making significant progress. Fulfillment expense amounted to $11.7 million, down 37% year-on-year and 16% on a constant currency basis. Fulfillment expense per order, excluding JumiaPay app orders, which do not include logistics cost, decreased by 26% year-on-year from US$3.2 in Q4 ’22 to US$2.3 in Q4 ’23, reflecting a decrease of 2% on a constant currency basis. As a percentage of GMV fulfillment expense improved from 7.4% to 5%.
This consistent improvement reaffirms the significance of our ongoing logistics transformation as we continue to build upon the success of our logistics optimization initiatives. These include a higher share of pickup station deliveries, which increased from 37% of shipped physical goods orders in Q4 ’22 to 48% in Q4 ’23. We persist in our strategic expansion of the pickup station network to penetrate undertapped areas of the market in a cost effective manner. We’ve expanded our footprint beyond main cities, enhanced warehousing staff productivity, reduced packaging cost along with many other initiatives. This improvement in efficiency illustrates our ability to capture savings across our logistics chain, while strategically expanding our logistics footprint outside of the main cities and improving our customer experience.
Sales and advertising expense amounted to $6.2 million in Q4 ’23, down 63% year-on-year and 49% on a constant currency basis, as we continue bringing discipline to our marketing spending. We see a clear improvement in our marketing efficiency ratios with sales and advertising expense per order decreasing by 61% from 2.4 in Q4 ’22 to 0.9 in Q4 ’23. As a percentage of GMV, sales and advertising expense reached 2.7% in Q4 ’23, which is almost a 400 basis point improvement year-on-year. This reduction in sales and advertising expense reflects our strategy to build a stronger customer value proposition that emphasize better supply of physical goods and geographical reach over costly market campaigns and promotions. We believe that this is the most relevant and viable approach to our African market.
