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J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme - Business - Nairaland

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J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by postbox: 7:51am On Aug 19, 2019
E-commerce company, Jumia is currently enmeshed in a case of internal fraud involving its affiliate marketing programme, otherwise known as J-Force.

The alleged fraud, purportedly running into billions of naira, is also said to have attracted the attention of the Economic and Financial Crimes Commission (EFCC). Confidential sources reveal that some staff of Jumia may have been picked up for questioning by the anti-graft agency. This was after some of the agents involved began to petition the Commission.

Jumia’s affiliate marketing programme purportedly offers individuals a chance to earn money through commissions on sales of the company’s products. Furthermore, the Jumia website confirms the existence of the scheme. It states: “Get on the JForce train today and earn money through commissions by selling items supplied by Jumia. You can also make money as you recruit new sales consultants. This is an opportunity to be your own boss and take orders from no one else but yourself as you have complete control over your activities.”

However, trouble started when Jumia began to place an embargo on the accounts of some of its agents. Investigations reveal that the company had detected some form of insider fraud and collusion between the marketers and merchants. A source disclosed that agents on Jumia’s Affiliate Programme usually enjoy juicy commissions, often higher than Jumia’s margins on products. As a result, some of them began colluding with merchants to place fictitious product orders, running into millions in order to brow-beat the company and earn heavy commissions.

The ugly development led to Jumia slowing down its affiliate marketing programme in recent months. Following the suspension of a number of accounts, agents are now accusing Jumia of ripping them off their entitlements.

Efforts to seek clarification from Jumia via email have remained unsuccessful.

One of the agents, who spoke on condition of anonymity, disclosed that some agents earn up to N40m monthly in commissions. The agent added that other marketers may have earned much more, even he decried the actions of the company.

“This suspension of accounts has been going on for a while but I never knew it could happen to me. Usually, as an agent, you can log into the Jumia Affiliates Dashboard to check the status of your commissions. However, I noticed that all my commissions had been frozen.

“From my enquiries, I discovered that I was not the only one affected. Jumia has been doing the same thing to other hard-working Nigerians who put in their effort to work for them. I tried contacting their Customer Service and all I was being told does not make sense to me. They promised to investigate and later told me that all the orders I placed were JForce orders. This is a clear case of fraud.”

Another agent disclosed that the action of the company was a calculated action to deny marketers of the huge commissions they had generated.

Their claim that all the orders placed were JForce orders which most of us don’t know what JForce is all about is in itself fraudulent on their part. Apparently, Jumia has seen that affiliate marketers are making so much money from the programme. Maybe they can’t afford to pay it and then they are looking for an excuse. Everyone needs to join hands with us and say enough is enough.”

Jumia had previously admitted seller fraud and fraudulent transactions with legitimate consumers on its platform. In a prospectus filed with the United States Securities and Exchange Commission (SEC) before its NYSE IPO, Jumia disclosed that sellers are also engaging in fictitious or “phantom” transactions with themselves or collaborators in order to artificially inflate their own ratings on its platform, build their reputation and search results rankings.

Moreover, the company seems helpless in controlling this menace.

Jumia revealed that although it had implemented various measures to detect and reduce the occurrence of fraudulent activities on its platform, there can be no assurance that such measures will be effective in combating fraudulent transactions or improving overall satisfaction among sellers, consumers and other participants.

In addition, the company reported that thugs broke into its warehouses in Kenya in late 2018, and stole merchandise with a value of approximately €500,000.

The foregoing calls into sharp relief the claims by Citron, an intelligence equity research company, that Jumia’s IPO was based on falsehood and ‘worthless’.

In the preamble to the report, Citron said:

“In 18 years of publishing, Citron has never seen such an obvious fraud as Jumia. As the media in the US is naively anointing Jumia the “Amazon of Africa”, the media in its home country of Nigeria has a plethora of articles discussing the widespread fraud in this Nigerian company. Not even that elusive Nigerian prince can cover this one up.

Jumia is the worst abuse of the IPO system since the Chinese RTO fraud boom almost a decade ago. Worse than being “the most expensive” US-listed e-commerce company, Jumia reported financials to show us a stagnant business that has burned through $1 billion and has moved the sucker’s game to the US Markets.”

SOURCE:https://brandspurng.com/2019/08/19/jumia-in-trouble-over-fraud-in-affiliate-scheme-jforce/

5 Likes

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by EasternActivist: 11:48am On Aug 23, 2019
Why is this report not on our front page? undecided

11 Likes 2 Shares

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by Teewhy2: 3:17pm On Aug 23, 2019
In Nigeria everybody just want to take advantage of the next person.

16 Likes 3 Shares

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by money121(m): 3:17pm On Aug 23, 2019
Ok

1 Like 2 Shares

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by ngwababe(f): 3:18pm On Aug 23, 2019
Haaa

1 Like 1 Share

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by UDOKABESTLUV(m): 3:18pm On Aug 23, 2019
Hmmmm

1 Like 1 Share

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by Teejayphillip(m): 3:18pm On Aug 23, 2019
Dem finally get Jumia las las

45 Likes 1 Share

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by Biritiko: 3:18pm On Aug 23, 2019
EasternActivist:
Why is this report not on our front page? undecided

Wake up

6 Likes 1 Share

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by BonkoINC: 3:19pm On Aug 23, 2019
Front page of verified news .

Fraud is getting too much in Naija.

10 Likes 1 Share

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by Dpharisee: 3:19pm On Aug 23, 2019
Can't we do any business without been fraudulent sad

10 Likes 1 Share

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by Lexusgs430: 3:19pm On Aug 23, 2019
Wells Fargo wahala........

3 Likes 1 Share

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by divinehand2003(m): 3:19pm On Aug 23, 2019
Nigerians too like fraud.

11 Likes 1 Share

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by nikkygal(f): 3:20pm On Aug 23, 2019
In other words, anything news about Nigeria from abroad now is synonymous with fraud?

This is just nauseating! I haven't read the detailed report yet but it's evident that our image as a country is now almost irreparable with the incessant damaging news about our fraudulent activities.

It would be really difficult to attract any form of foreign direct investment (FDI) to Nigeria around this time.

Funny how it's cutting across every single facet of our country. We're only now renowned for Drug trafficking, wire fraud, and financial misappropriation in both corporate & government institutions.

What a shame!

22 Likes 2 Shares

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by Nobody: 3:21pm On Aug 23, 2019
angry
J-force, total bull crap.

1 Like 1 Share

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by Minjim: 3:21pm On Aug 23, 2019
They should let my Global order arrive first o

11 Likes 1 Share

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by Joystark(f): 3:21pm On Aug 23, 2019
What's with so much cases of fraud flying up and down the last two weeks? shocked

4 Likes 2 Shares

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by Donald3d(m): 3:21pm On Aug 23, 2019
smiley smiley

1 Like 1 Share

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by PapaNnamdi: 3:22pm On Aug 23, 2019
40m naira monthly, chai Las Las everybody de do Yahoo.

even u, if u had tried to generate a recharge pin from a used one, u have don Yahoo, only say u no suceed,

Naija my country,
where everybody be crimina

I hail ooo

17 Likes 1 Share

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by iammo(m): 3:22pm On Aug 23, 2019
:-


even a company as great as Oando is defrauding its investors, what do you expect from jumia


...

13 Likes 1 Share

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by bigerboy200: 3:22pm On Aug 23, 2019
Nigerians and Fraud are like bread and beans.

3 Likes 1 Share

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by GloShare(m): 3:22pm On Aug 23, 2019
Jumia is sinking and can no longer pay commissions.

This is the result of hiring your brother as a business development manager.

A good BDO will analyze all calculations such that commissions and benefits will never eliminate the company's profits per purchase.

How can jforce commissions eat your profits and leave you with a loss? And you couldn't strategize and cut down %?

Jumia is a goner be that.

15 Likes 1 Share

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by sonnie10: 3:22pm On Aug 23, 2019
Las las the CEO might be jailed. They don’t know the environment they have entered into. NYSE is not Nigeria stock exchange. The rules are stiffer

6 Likes 2 Shares

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by bluefilm: 3:23pm On Aug 23, 2019
This is exactly what happens when you have a lot of fantastically corrupt citizens in your country.

15 Likes 2 Shares

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by ibietela2(m): 3:23pm On Aug 23, 2019
They are looking for a way to scape payment... One of our article has been on #1 on Google for over a year could you believe we made only 5k and we received 4k payment.

1 Like 1 Share

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by Ayemileto(m): 3:23pm On Aug 23, 2019
Jumia pays between 2.5% - 10% commission depending on Agent level and products ordered. (Fashion products have highest commission).


So, how come someone is earning up to N40m or more monthly?


So, that person idi trying to say he usually order over N400m products every month?




This looks like fraud truly.

39 Likes 5 Shares

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by StrikeBack(m): 3:23pm On Aug 23, 2019
grin

1 Like 1 Share

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by Idzitari1(m): 3:24pm On Aug 23, 2019
I was scammed by this same jumia too

2 Likes 1 Share

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by Datingcomrade(f): 3:24pm On Aug 23, 2019
Nawa oo, this is fraud, make jumia pay them Jare, to do affiliate marketing no easy at all

1 Like 2 Shares

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by namexyz: 3:25pm On Aug 23, 2019
Open Interview For It Hardware Professional by namexyz: 3:06pm
My client wants abut 5 IT Hardware professional.
Skills Requirement
- must have basis knowledge of IT hardware as well as general knowledge of IT
this include basis troubleshooting, formatting of system, repair of basis IT hardware, Troubleshooting of Printer and the likes.
- Salary is quite attractive.
-

Do chat 07066161345 for further brief and address to the venue of the interview tomorrow in IKEJA GRA by 9am.
Attendee should come dress responsibly.

3 Likes 1 Share

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by Nobody: 3:25pm On Aug 23, 2019
las las dwem get jumia

1 Like 1 Share

Re: J-Force: Jumia In Trouble Over Fraud In Affiliate Scheme by PapaNnamdi: 3:26pm On Aug 23, 2019
Datingcomrade:
Nawa oo, this is fraud, make jumia pay them Jare, to do affiliate marketing no easy at all

it is eezy if u ar a fine sexy young lady,

from experience, I spake

1 Like 1 Share

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