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Nairaland Forum / Nairaland / General / Business / Jumia Suffered N53 Billion Loss In 2017 (23810 Views)
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Re: Jumia Suffered N53 Billion Loss In 2017 by toxicbrain: 9:40pm On Apr 13, 2018 |
53B..mmmake I hear How much is the company worth then? 1 Like 1 Share |
Re: Jumia Suffered N53 Billion Loss In 2017 by jaxxy(m): 9:49pm On Apr 13, 2018 |
E commence done properly shud give u double or triple profits bt sadly Jumia's study of the market was probably faulty and therefore business model will definitely be faulty. They had all the much needed funds and financial backing to play with bt did a terrible job with a slopy business plan and projections. That debt is almost unrecoverable now imo. Its also useless and redundant to make cuts wen the obvious fault is from ur business plan. Its more like activating a shut down phase unless the main problem is fixed. 1 Like |
Re: Jumia Suffered N53 Billion Loss In 2017 by Nobody: 9:56pm On Apr 13, 2018 |
There always sell inferior stuff the only thing I get from them is T-shirt bionixs: |
Re: Jumia Suffered N53 Billion Loss In 2017 by jobbers: 10:14pm On Apr 13, 2018 |
the problem jumia has are numerous and they will continue to fail . firstly they fail to learn from konga new business model which is working for konga now.they care so much about their buyers more than their sellers forgetting the fact that top eccommerce like amazon aliexpress dhgate ebay among others makes sellers top priorities and this encourage the sellers to work harder.jumia set up strict measures which discourage many of their sellers and most of the top sellers has left the platform because they continue to lose money.when you partner with an eccomerce company and in returns its all lost.you will have to give way. no one is in support of low quality items but nigerian business model both the players and the other parties want to eat their cake and have it.we are in a country where buyers will order a cloth online and use it for an occassion ,few days after the occassion the said buyer will call jumia and tell them it is wrong size or even lied that its fake ...just to get his or her money back.the so called jumia staffs which aren't even happy with their working conditions are also part of jumia's problem.they will just inform thr said buyer to return the item immediately and they will refund the buyer which means the said seller has beared one lost.items returned in that shape can't be resold.those are part of the major problems .some of the items are rejected and jumia kept paying debts that they created and accummulated all by themselves . they don't verify claims.they are quick to judge.they put their sellers last in a business model where you hardly get a returning customers.maybe because konga understood the business model because it is an indiginous company and what kills konga was just the pay on delivery tactics which in return cost total loss in running logistics.too many unserious buyers will place orders coz internet is cheap and some of this orders may be going to the north or east and the orders are pay on delivery .when delivery man get to the location the customer will fail to pick up their calls because they don't want the item in the first place. this result to one lost on fueling and Logistics, another lost on cost of promoting that particular order using adsense or facebook or other platforms which are expensive and also labour loss .you need to pay staff either item was successfully delivered or not. as trust issues continues.the only business model that will work for an eccommerce company in nigeria is pay before delivery no matter what .if you order for something and you pay for it.you will be around to pick it up or make arrangement to pick up. if amazon and alibaba among others are still running jumia's old business model.they would have failed long time ago. inasmuch as jumia is trying to create a business model that works.they have to emulate their competitors and restrategize. 6 Likes |
Re: Jumia Suffered N53 Billion Loss In 2017 by smartistics(m): 10:16pm On Apr 13, 2018 |
Bloggers.... How much is the whole of Jumia. |
Re: Jumia Suffered N53 Billion Loss In 2017 by Nobody: 10:35pm On Apr 13, 2018 |
dalynch:It could be from selling fake products. |
Re: Jumia Suffered N53 Billion Loss In 2017 by icon007(m): 10:40pm On Apr 13, 2018 |
I think jumia needs to research and probably learn from the way Amazon carry out its business. Mind you, Amazon and Alibaba made loses for couple of years before gain! I don't really see reasons for such a huge lose. How much is its capital base for such loses year in year out in loses |
Re: Jumia Suffered N53 Billion Loss In 2017 by Funkybabee(f): 10:40pm On Apr 13, 2018 |
And how did they gain this billion |
Re: Jumia Suffered N53 Billion Loss In 2017 by nwaire: 10:42pm On Apr 13, 2018 |
Shey if them give me 1 billion inside shey I will be praying for them not to loose the remaining 57 billion 1 Like |
Re: Jumia Suffered N53 Billion Loss In 2017 by nenergy(m): 10:49pm On Apr 13, 2018 |
lmm4real:Hahaha, na our delivery associate you dey yab so? Some are like that though, but Dem dey try! Which state and area does he cover? |
Re: Jumia Suffered N53 Billion Loss In 2017 by nenergy(m): 10:53pm On Apr 13, 2018 |
jerflakes:Money spent on publicity, logistics, fuel, operations alone if not recouped na loss o. shipping is heavily discounted and is a source of leakage/loss. Did you know that Jumia ships outside Lagos items via air transport? Shipping to Abuja is 600 - 700. It's from there they'll pay airline, Service vehicles and pay Delivery man. Business in Nigeria is tough! 1 Like |
Re: Jumia Suffered N53 Billion Loss In 2017 by slanky: 10:55pm On Apr 13, 2018 |
Re: Jumia Suffered N53 Billion Loss In 2017 by Maximus85(m): 11:18pm On Apr 13, 2018 |
wontiboje: Lie |
Re: Jumia Suffered N53 Billion Loss In 2017 by deepsuk(f): 12:29am On Apr 14, 2018 |
Chai. Stock market listing is coming. Jumia is the real scam. Oyingbo-pe-pe |
Re: Jumia Suffered N53 Billion Loss In 2017 by Tunndeh(m): 1:38am On Apr 14, 2018 |
The sooner jumai realise that E-commerce is not profitable in Nigeria the better. |
Re: Jumia Suffered N53 Billion Loss In 2017 by PotatoSalad(m): 5:17am On Apr 14, 2018 |
Tunndeh:It is. Jumia was a good company. All they have now are sellers who ship fake low quality goods. Konga over jumia, any day anytime. 2 Likes 1 Share |
Re: Jumia Suffered N53 Billion Loss In 2017 by bigtt76(f): 5:28am On Apr 14, 2018 |
I thought one Oga for Jumia was making mouth on Medium the other day |
Re: Jumia Suffered N53 Billion Loss In 2017 by oteneaaron(m): 7:00am On Apr 14, 2018 |
jobbers: The most reasonable post I've seen all week!! You are very right. Running an E-commerce esp an online marketplace is very difficult. You have the chicken and egg problem, and who you'd give more credence to. The Buyer or the Seller?? The buyer is the customer....and the seller is a consumer. So who is the Golden goose Just as you mentioned, POD and Trust Issues killed the Jumia model. |
Re: Jumia Suffered N53 Billion Loss In 2017 by MyExpression(m): 7:10am On Apr 14, 2018 |
SleakBuzzPR: Logistics, repackaging, warehousing and refunds.... how much commission do they make?! They just came with their bigwigs to intimidate smaller sectors hoping to cut costs in overall turnover cost. unfortunately, they spent much more than they earned. 1 Like |
Re: Jumia Suffered N53 Billion Loss In 2017 by djeezy(m): 7:49am On Apr 14, 2018 |
booblacain:Too much adverts. 3 Likes 1 Share |
Re: Jumia Suffered N53 Billion Loss In 2017 by BeardedTraveler: 7:50am On Apr 14, 2018 |
biggy26: Lol. Professor. You think Jumia only operates in Nigeria? 1 Like |
Re: Jumia Suffered N53 Billion Loss In 2017 by Kabaka100: 10:24am On Apr 14, 2018 |
booblacain: It's normal to make losses fie this kind of business at the initial stage, but I hope it has a good strategy designed for tge Nigetrian/African Market so it slowly move into profitability over time. Even Uber that is worth about $70b hasn't made any profit to date. This digital landscape is not for the faint of heart |
Re: Jumia Suffered N53 Billion Loss In 2017 by 4C2215131: 11:34am On Apr 14, 2018 |
Follygunners: Exactly same problem bedeviling the Real Estate sector of the economy. All the companies fighting for a less than 5% market constituting the wealthy (check out the vacant "estates" in Lekki and beyond) while more than 95% of the market remains unserved as they make up the "masses " whom the companies think can't cough up funds required to own a home/land. Good strategy is lacking which to be honest is a function of the messed up economy. 1 Like 1 Share |
Re: Jumia Suffered N53 Billion Loss In 2017 by 4C2215131: 11:39am On Apr 14, 2018 |
jobbers: You made good points BUT sellers too sell fake things for Jumia abeg! 1 Like 1 Share |
Re: Jumia Suffered N53 Billion Loss In 2017 by biggy26: 11:40am On Apr 14, 2018 |
BeardedTraveler:Senior lecturer, exactly what are you talking about? 1 Like |
Re: Jumia Suffered N53 Billion Loss In 2017 by 4C2215131: 11:42am On Apr 14, 2018 |
PotatoSalad: This is one of the banes of Jumia. They have to institute an excellent QA department immediately (if they currently have one, it's sadly not working). |
Re: Jumia Suffered N53 Billion Loss In 2017 by Kabaka100: 12:45pm On Apr 14, 2018 |
givan: Please summarise their strategies tgat led to their big losses |
Re: Jumia Suffered N53 Billion Loss In 2017 by kashoki2017: 12:50pm On Apr 14, 2018 |
jerflakes:I wonder ooooooo |
Re: Jumia Suffered N53 Billion Loss In 2017 by BeardedTraveler: 1:43pm On Apr 14, 2018 |
biggy26: Lol. No offense. The loss isn't about their operation in Nigeria alone. It's talking about the whole of Jumia operations in Africa which include other countries too |
Re: Jumia Suffered N53 Billion Loss In 2017 by biggy26: 4:06pm On Apr 14, 2018 |
BeardedTraveler:Oh really? will check it again. 1 Like |
Re: Jumia Suffered N53 Billion Loss In 2017 by maasoap(m): 4:09pm On Apr 14, 2018 |
tokrizy: Enlighten him if you have answers. |
Re: Jumia Suffered N53 Billion Loss In 2017 by maasoap(m): 4:12pm On Apr 14, 2018 |
PotatoSalad: I dey tell you. Sellers with fake and substandard items make up the three quarter of all the sellers on Jumia. I bought memory cards, fake. I bought phone battery, fake. |
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