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Jumia Suffered N53 Billion Loss In 2017 - Business (4) - Nairaland

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Re: Jumia Suffered N53 Billion Loss In 2017 by maasoap(m): 4:19pm On Apr 14, 2018
[s]
jobbers:
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.
[/s]

All your points are pro-sellers. What about dissatisfied customers? Not all customers are crooks my friend. Which online company like Jumia don't protect their buyers?
I do patronise aliexpress and I know how far they went to protect buyers. Fake sellers are just too much on Jumia, take it or leave it. And that has made buyers to lose interest in them.
I can only buy on Jumia again only if I forget about my past experiences.
Re: Jumia Suffered N53 Billion Loss In 2017 by maasoap(m): 4:23pm On Apr 14, 2018
nenergy:

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!

Well, any small item to my state capital starts from N1600. As if that was the only item that they would bring from Lagos State. Some items like washing machine starts from around N5000.
Personally, I believe that spending on publicity/adverts is killing them. If your service delivery is okay, starting from having sellers with genuine products, you wouldn't need to spend so much on adverts. They are just like Glo network.

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Re: Jumia Suffered N53 Billion Loss In 2017 by Olembey: 4:29pm On Apr 14, 2018
adanny01:
They should find out what is wrong. Cos i do shop alot from Jumia and have gotten better bargains than i would have in the open market, not to talk of risks in getting substandard prices.

My discouragement is the lack of pay on delivery even though my last refund was done in less than 24hrs.

I trust Jumia and wish them well.

About pay on delivery, depends on your location. Sometimes, you might to change address. I could order stuffs on your behalf, for you... Am a sales rep. Pm me
Re: Jumia Suffered N53 Billion Loss In 2017 by adanny01(m): 9:42pm On Apr 14, 2018
Olembey:


About pay on delivery, depends on your location. Sometimes, you might to change address. I could order stuffs on your behalf, for you... Am a sales rep. Pm me

I do mostly pick up station, its more convenient, i dont like someone tracking me to deliver. And i choose the station that offers pay on delivery but at check out i dont get d option. I know international items do not have the option available.

Anyway, its not a big problem for me since refunds are reliable. The only thing is that i have to be 100% certain of what am buying before ordering now, this is because of the return policy on some items.

How does the order on my behalf work? Do i get anything out of it?
Re: Jumia Suffered N53 Billion Loss In 2017 by Olembey: 10:18pm On Apr 14, 2018
adanny01:


I do mostly pick up station, its more convenient, i dont like someone tracking me to deliver. And i choose the station that offers pay on delivery but at check out i dont get d option. I know international items do not have the option available.

Anyway, its not a big problem for me since refunds are reliable. The only thing is that i have to be 100% certain of what am buying before ordering now, this is because of the return policy on some items.

How does the order on my behalf work? Do i get anything out of it?

The reason why you don't see pay on delivery option for some item on checkout is because those items/location ain't available on pay on delivery, else, you will always see it at checkout.

Ordering on your behalf will give you 25% discount on shipping. All I will need is your name, contact and address you want it delivered to (pick up station inclusive)
Re: Jumia Suffered N53 Billion Loss In 2017 by grandstar(m): 1:26am On Apr 15, 2018
booblacain:
What's the cause of these losses?

Nigerians have not fully caught up with buying online.

Also, Nigeria is still a porr country.

Thirdly, most ecommerce companies like Jumia make massive losses in the beginning but eventually make profits.

Anyway, Nigeria is a poor country with poor logistics. Also, the primary causes of the losses are the heavy amounts spent on online marketing.

I don't think the time is now

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