Jumia Online Mall On Its Death Bed

:D:D:D A hedge fund?

Yes, hedge funds invest in e-commerce Ventures. I don’t know what you find funny in that.

Those guys are interested in quick bucks maybe PE.

Hapo ndio waliharibu. For such a nascent idea huku wangeweka only approved vendors so that they can gain trust. Ukiingiza akina macharia who is only to make a quick buck u won’t go far.

It’s hard to scale up like that.
Even Amazon has thousands of individual vendors.

Lack of physical address is just one. Another is trust and honesty. Both rare in Kenya’s online marketplaces. Hapa Kenya e-vendors fall into the temptation to sell substandard items cloaked under the veil of perceived anonymity thinking it can’t ever hurt them.
Take the individual shops on Aliexpress: they know any tiny order they mess up will translate to bad reviews and enough of these will ultimately lead to their demise. Hence their legendary politeness, willingness to replace an item or make refunds. In Kenya, the rudeness and trickery is just apalling.

Amazon was founded in the mid 90s. They introduced individual vendors around 2000. And this is in a country that does not have as many quality issues as we do. Over time they have tightened the rules to weed out opportunists. For instance you cannot sell copyrighted products.

You can’t follow the same path as pioneers. Amazon was clearing the bushes of e-commerce.
Just because Netflix had its first original programming 20 years after founding does not mean Disney+ or Showmax should wait that long.

What Amazon wants is to drive out every trader. Big and small.
They’ve entered so many verticals and now sell thousands of their own in-house brands and give them more visibility.

It takes a lot of capital might to get there. Money Jumia does not have.

How is Jumia supposed to verify every product they sell for authenticity?
Buyers should help by rating and commenting on fake products.

Shida ya Jumia is copying model ya Amazon without acknowledging shortcomings in the Kenyan market.

I don’t think it’s a matter of capital. Amazon could have poured all that money into the market but if consumers don’t trust u it will be all for naught. I recently watched a youtube feature on why McDonalds couldn’t survive in south east Asia markets. These are countries with a huge culture of eating out so to an investor it’s a sure moneymaker. But what they neglected were the palates in those countries. Mtu anapenda fermented fish sauce will find a McDonalds burger to be so bland.

Jumia, Kenya Airways, Telkom Kenya, Airtel are some of the companies that have been dying for years but somehow they are still here with us.

Jumia hakuna mahali inaenda.

Sisi kama wakenya lazima tuonje kitu, ndio tufikirie kama tutachukua…

They are still with us because they are propped by/with public funds. Jumia will not be that lucky to get this…Big difference.

Africa's "Jumia e-Commerce" Conglomerate Trying Hard To Keep Afloat... - Business - Kenya Talk

Jumia speculators made money last April during the IPO…started at $ 14.50, rose to a high of $42 and then some renowned short-seller(Citroen) questioned their “fogothari” accounting and their shares crashed. But by them the hedge funds and speculators had recovered their invetsed funds Jumia is trading @ 4.00; had even gone to $ 2.11 in March this year. I have never used Jumia but I believe that an online platform needs both an honest trader and customer. That is what works for Amazon.

Kenya has the most difficult conditions in Eastern Africa to start a business according to 2018/2019 World Bank Report. Electricity costs and taxes are very high, License and other regulations are are uphill task and corruption is very rampant.

lol…hi sa ni uwongo

i

i used to sell with them and they inspect all your products before shipping to customer…you cant take shit there and ecpect iendee customer

I just went on their site to look at the rating system and reviews. Some of the reviews look fake even if it says verified purchaser. One review it says I like it or I love it then some generic statement multiple times.

I’ve never tried Jumia. My mom is the one who has ordered things from them. I used to do OlX and had some good experiences. My last experience wasn’t good. Got sold an OPPO and meeting up was an issue cause she was sending someone else. We met in town with the sent person. No brick and mortar place. I was asking about its warranty and where it was. She was like oh you can just do it online. Long story short the phone was a clone. Didn’t have memory.

Once you can set up a system that can venders with real buyers… And not just the store buying its own product. Once you have quality control people, have the vendors with addresses that can’t just go ghost on you. Booting people who false advertise, you are good to go.

The OP is right. There’s a huge gap. And online store business is a big business. They’re just being screwed by unscrupulous vendors just the way OlX is. Their role is to make sure if it’s on their site some sort of quality guarantee should come with it.

lma

[quote=“Blckrogue, post:37, topic:222579”]

I just went on their site to look at the rating system and reviews. Some of the reviews look fake even if it says verified purchaser. One review it says I like it or I love it then some generic statement multiple times.

I’ve never tried Jumia. My mom is the one who has ordered things from them. I used to do OlX and had some good experiences. My last experience wasn’t good. Got sold an OPPO and meeting up was an issue cause she was sending someone else. We met in town with the sent person. No brick and mortar place. I was asking about its warranty and where it was. She was like oh you can just do it online. Long story short the phone was a clone. Didn’t have memory.

Once you can set up a system that can venders with real buyers… And not just the store buying its own product. Once you have quality control people, have the vendors with addresses that can’t just go ghost on you. Booting people who false advertise, you are good to go.

The OP is right. There’s a huge gap. And online store business is a big business. They’re just being screwed by unscrupulous vendors just the way OlX is. Their role is to make sure if it’s on their site some sort of quality guarantee should come with it.
[/QUOTE
jumia inspects all items being shipped by vendors for quality and once a customer rejects your products for quality reasons your omline platform is disabled customer gets a refund na unarudishiwa product yako.
in regards to online reviews lazma upurchase ndo uweze kuandika review so i really dont understand how kuna fake reviews pale[/QUOTE]

Did it just die out of nowhere?

Jumia will make losses for another 8 years. Trust ndio iko chini huku Kenya will take time for Kenyans to pay upfront.

Another reason why they are not turning in any profit is because of slow sales outside of Nairobi due to shipping costs. Lets say one guy in Garissa buys a fridge and there is no other purchase from that remote town, that Item will be shipped there for lets say Ksh 4K, had there been other buyers may a TV here, a washing machine there, an oven there, each of those buyers would have paid for shipping yet the goods would have been delivered by the same truck. That is how Amazon makes their money. An amazon truck lets say from a Dallas warehouse leaves with 150 shipments each of them has a shipping fee associated with it and they are sorted according to proximity of delivery addresses, now multiply that by number of Amazon warehouses in the entire USA, makes Jeff Bezos the riches nigger on earth.