This online mall in its last days. After years of loss making, Covid19 has now come to put the last nail on its coffin. Nakumat was also a Giant stretching its tentacle to far flung areas. Tuskys took its place.
This is the right time to start a rival company to fill up this void. OLX died too and it morphed into jiji.co. ke
The MAIN downfall of the Kenyan ecommerce market is that We still don’t have Physical Addresses yet we have the best Mobile Money System in the whole world.
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Online ordering of basic household goods bado sio mainstream hii Kenya. Few are also unwilling to buy gadgets b4 seeing them first. Lack of physical address can’t hamper it’s success rate coz they use the nearest landmark kufikisha mzigo which works fine. This kind of biz needs hundreds of thousands of weekly orders coz the margins I believe are low. Same way any brick and motor store relies on tonnes of foot traffic to remain afloat.
What is this Jumia collapse news based on?
So far it is operating normally. I got an order last week. It is not uncommon for ecommerce companies to post years of losses.
Also, who has the financial might in Kenya to launch a site similar to Jumia? They’ve invested billions in structures, logistics, warehousing and advertising.
Jumia has already established a functioning business. If you knew anything about its owners, they’re basically venture capitalists. Their MO is to prop up a business until it becomes attractive and viable to other investors, then exit by selling their stake for a tidy profit. Jumia won’t just collapse, it’ll probably be bought by Alibaba, Rakuten, Amazon, or a hedge fund.
I bought a 1 TB Toshiba external disk that died within 7 days of delivery. Called them, asked for replacement according their terms and conditions and they went mute on me. That’s how they lost a loyal customer who had bought so many things from them!
Mostly on things available on Jumia Global. Meaning they have to import.
Most things on Jumia express (local), of reasonable size have that option.
Importing something for a buyer and then they refuse to accept it is not a very sustainable business.
Same as delivering a fridge and then they refuse it.