₦airaland Forum

Africa-focused e-commerce retailer Jumia Technologies will shut down its South African online fashion retailer Zando and its Tunisian operations by the end of the year.

CEO Francis Dufay revealed that the move is part of a strategic refocus on more profitable markets such as Nigeria.

To achieve profitability, Jumia is implementing aggressive cost-cutting measures, which include reducing its workforce, exiting the everyday grocery and food delivery sectors, and scaling back delivery services unrelated to its core e-commerce business.

“The trajectory of the countries did not align with the strategy of the group,” Dufay explained, citing complex macroeconomic conditions, a competitive landscape, and limited medium-term growth potential in these regions. He added, “We believe it’s the right decision,” emphasizing that the move will allow the company to concentrate its resources on the other nine markets where growth prospects are more promising.

Jumia’s remaining markets include Egypt, Kenya, Morocco, and Nigeria. Dufay expressed confidence that success in these regions could help recover volumes lost from the closures in South Africa and Tunisia. He noted that Zando and the Tunisian operations contributed only 2.7% of total orders and 3% of Gross Merchandise Value during the first half of the year.

Zando.co.za, founded in 2012, has established itself as a prominent online fashion platform in South Africa. Meanwhile, Jumia’s Tunisian operations have been running under the Jumia brand for a decade, offering general merchandise.

Dufay confirmed that there are no plans to sell either operation, which will hold clearance sales before their shutdown. The closures will result in approximately 110 job losses, although some employees may be relocated within the company’s other divisions.

This decision comes shortly after South Africa’s largest online retail group, Takealot, announced the sale of its fashion subsidiary, Superbalist, amid rising competition from fast-fashion e-commerce giants like Shein and Temu. Dufay acknowledged that the growth potential in South Africa is increasingly challenging due to the highly competitive environment.

Source: https://punchng.com/jumia-exits-south-africa-tunisia-faces-nigeria-others/

Jumia like Amazon is not supposed to be profitable. They should develop other strategy and streams of income like a cloud based business like aws. A streaming service etc. Warehousing and logistics business

kettykin:
Jumia like Amazon is not supposed to be profitable. They should develop other strategy and streams of income like a cloud based business like aws. A streaming service etc. Warehousing and logistics business

What is the direct correlation between e-commerce and cloud service like AWS, Google Cloud, Azure, and etc?

By the way, what do you mean by “Amazon is not profitable”?

I am looking forward to a Naija e-commerce logistics service that will standardize using public transport as their courier service especially for parcel level deliveries. Insurance should be employed to improve the confidence of users and they should work with NURTW to make them a live logistics uber.

That will save lot of cost. You only need to care about the last mile

They will soon leave Nigeria too. If they can't survive in South Africa and Tunisia, na T-Pain administration dem wan survive?

Inukwa akuko?

LegendHero:
What is the correlation between logistics and cloud service like AWS, Google Cloud, Azure, and etc?

By the way, what do you mean by “Amazon is not profitable”?

Amazon has barely made profit since it was founded. It is a very thin margin business.

However, Amazon's financial situation began to shift, and it started reporting consistent profits in the mid-2010s. The company's growth in its Amazon Web Services (AWS) cloud computing division significantly contributed to its profitability. AWS has been a major driver of Amazon's earnings, often offsetting lower margins in its e-commerce operations.

Today, Amazon is a profitable company, though its profit margins in retail remain lower compared to the high margins from services like AWS and advertising.

Since jumia is in the same line of e-commerce business like Amazon. The smart thing is to copy their cloud offerings and other services

Beremx:
They will soon leave Nigeria too. If they can't survive in South Africa and Tunisia, na T-Pain administration dem wan survive?

Inukwa akuko?

Na wa for you o!

NoIgboSoundTueh:
This wont trend

Of course. The headline is not "Jumia Exits Nigeria"

Nice one

Children of hate frustrations and perdition that don't want to hear or see any good news about our darling country will soon start wailing, shouting na lie.

They have promised their miserable and frustrated life to never read any good news concerning our darling naija.

Na dat bitterness and hatred go wound dem and every one on their family, no matter what part of the country they are from.

GOD BLESS NIGERIA 🇳🇬.

Slow and steady we will get to the nation of our dreams.

Thank God it’s not the other way round. We for no hear word again

With the thriving economy in Nigeria, it is financially profitable for them to concentrate on Nigeria.

Thanks to the administration of His Excellency, President Asiwaju Bola Ahmed Tinubu (GCFR)

LegendHero:
Source: https://punchng.com/jumia-exits-south-africa-tunisia-faces-nigeria-others/

Platform full of substandard products . I spit

I would be surprised if they are making shi-shi in Nigeria.

I can remember one of my orders, I’m not even sure if i paid up to N500 for delivery. It was transported to about 3/4 touch points before getting to me, from one end of Lagos to another.

It really baffled me, not just the cost of transporting it, the cost of handling, sorting, tracking etc. I kept wondering to myself, shey this people would make any profit like this or nobody is paying attention to this their current supply chain system.

hope they know about the hardship in Nigeria now
















we love you
our role model Princess FChukwu

COMRADES, under Tinubu Jumia will soon exit Nigeria as well

wellmax:
Thank God it’s not the other way round. We for no hear word again

You know dem nonentities wella.

They would have been dancing happily and sipping palm-wine if the news was the other way round.
Frustrated swines they are,
Whatever part of they nation they hail from.
They bore and annoy us.

kettykin:
Amazon has barely made profit since it was founded. It is a very thin margin business.

However, Amazon's financial situation began to shift, and it started reporting consistent profits in the mid-2010s. The company's growth in its Amazon Web Services (AWS) cloud computing division significantly contributed to its profitability. AWS has been a major driver of Amazon's earnings, often offsetting lower margins in its e-commerce operations.

Today, Amazon is a profitable company, though its profit margins in retail remain lower compared to the high margins from services like AWS and advertising.

Since jumia is in the same line of e-commerce business like Amazon. The smart thing is to copy their cloud offerings and other services

Bro Amazon is profitable. The major reason they moved into cloud is simply coz they invested much into their own infrastructure to handle their online trade. Then at some point, major tech guys in USA rushed to cloud coz it was the new goldmine so Amazon keyed into it and then start selling their cloud space to others.

It’s just diversifying portfolio. It has nothing to do directly with an e-commerce site in Nigeria for example.

Jumia don’t need to create their own cloud platform? Why do that? When you can just plug and play into the Availability zone of existing cloud? Infact it will be more costlier for Jumia to maintain than them using existing cloud platform.

Amazon moving to cloud business is just akin to Dangote moving from cement to refining oil. It is portfolio diversification and nothing else.

God bless Tinubu and Wike for creating enabling business environment.

Nigeria getting greater again

You will soon comot from Nigeria when Tpain is done with you

Beremx:
They will soon leave Nigeria too. If they can't survive in South Africa and Tunisia, na T-Pain administration dem wan survive?

Inukwa akuko?

You’re still sad that they chose Nigeria?

Even Tpain go tire when e see the psyche of Nigerians like you.

post=132460733:
Children of hate frustrations and perdition that don't want to hear or see any good news about our darling country will soon start wailing, shouting na lie.

They have promised their miserable and frustrated life ton never read any good news concerning our darling naija.

Na dat bitterness and hatred go wound dem and every one on their family, n9 matter what part of the country they are from.

GOD BLESS NIGERIA 🇳🇬.

Slow and steady we will get to the nation of our dreams.

Black heart.🖤

It will be like that..

Even the Nigeria self, I believe it’s cuz of our population. Online vendors already reduced Jumia’s customers purchase..

On my WhatsApp, I can’t even count how many people that are selling things. Anything you want to buy, e dey. Including food..

Aside from that, Jumia don’t really sell quality materials! Substandard items too much..

While Amazon has made Jeff one of the world's richest men, Jumia is still struggling to make profit in Nigeria. What Nigeria cannot destroy doesn't exist.

kettykin:
Amazon has barely made profit since it was founded. It is a very thin margin business.

However, Amazon's financial situation began to shift, and it started reporting consistent profits in the mid-2010s. The company's growth in its Amazon Web Services (AWS) cloud computing division significantly contributed to its profitability. AWS has been a major driver of Amazon's earnings, often offsetting lower margins in its e-commerce operations.

Today, Amazon is a profitable company, though its profit margins in retail remain lower compared to the high margins from services like AWS and advertising.

Since jumia is in the same line of e-commerce business like Amazon. The smart thing is to copy their cloud offerings and other services

Do you think e-commerce is a profitable business venture for people looking to go into it?

Beremx:
They will soon leave Nigeria too. If they can't survive in South Africa and Tunisia, na T-Pain administration dem wan survive?

Inukwa akuko?

You don't know the value of what you have

Vision101:
You don't know the value of what you have

Jumia isn't making money in Nigeria yet several years after they've operated here. Some things are just beyond human understanding. I just pity their investors

Y

Jumia should close down. A perennial loss making venture . Purchasing power in Nigeria has greatly reduced no hope for them

Good

kettykin:
Jumia like Amazon is not supposed to be profitable. They should develop other strategy and streams of income like a cloud based business like aws. A streaming service etc. Warehousing and logistics business

who told you that Amazon is not profitable

Jumia was created to be profitable but their business model had some flaws

they actually have been profitable before

you are right about diversification to other services, they did that before but lost lot of money