₦airaland Forum

the scam is about to be complete; sell equity to investors, exit the market with style and focus on other regions.

That Jumia Self are bunch of Thieves,all the items I bought and was delivered were all faulty..
I really can't believe it

Despite there price slashes, promo everyday, j force plan, they r still complaining, this country self na real wa o

Ssalk:
Wow.... As if I knew. My Ph.D research proposal is on Achieving sustainable E-commerce and retail business in Nigeria. (Problem and Prospect). Jumia, konga and dealdey all included in the research.

The honest truth is, the Nigeria climate is not conducive enough for online retail business. It is cheaper to move goods via railway system than roads and air but no good railway network in the country.
Again, there is low penetration of credit system in the country, we only used debit card. Lastly , these online companies like Jumia and co don't put their time to creat any innovative idea to deal with these setbacks. Rather they are only concern about making profits.

My research is gonna be interesting.

Please tag me when you are through with the research. I'd be glad to read your work.

lobell:
Online marketplaces need to build trust in buyers over profit and over a long period. They have to ensure buyers get what they pay for or get their money back, not some silly vouchers. Also, they need to penalize sellers who consistently receive bad reviews.

Ebay has been successful because it is a buyers market. You cannot as a seller afford to sell substandard goods or ship defective products or take a month to send an item that should have been delivered in a week maximum.

Buyers need to feel safe transacting on any platform. The customer is king and should be treated as such. All existing marketplaces in Nigeria place too much power in the hands of sellers and this is why a new challenger is needed in this space. One that strikes a balance between maintaining profitability for the seller and keeping the buyer safe and happy. One modelled after Ebay, ensuring sellers stay compliant while building trust in buyers.

Guess who that new challenger is? Read beneath the lines.

Amazon is guilty of everything you listed up there in a addition to being on the list of
one of the worst companies to work for.
A successful company isn't necessarily doing everything right, neither is a struggling
company getting everything wrong.

jumia is doing everything right except the one thing they were supposed to pay attention, cunstomer satisfaction. This is a no-brainer, Amazon goes out of its way to ensure customer satisfaction.

You can fool the people and sell them sub-standard goods sometimes, but one thing is guaranteed, they will soon kick your ass.

look through the platform, most marchants have a very poor rating. Even the rating system is weak. JUmia forgot the trust in transacting online is tied to the credibility of the rating system.

In my opinion, dubious marchants and indicision on the side of jumia to kick out bad marchants is the reason customers don't return.

Jethrolite:
So the Sawmer brothers are the ones forcing this IPO to happen.

This IPO is just a disaster waiting to happen. Amazon was making money but was not profitable because Jeff Bezos was building out massive fulfilment centres and investing most of the money made back into the business unlike in the case of Jumia where I don't even know what is happening. Everything is shrouded in secrecy only tales of fantastic sales are released every now and then but investors no longer believe in such because of Konga.

Nigerian investors are scared stiff of any other form of voodoo IPO

Xisnin:
Amazon is guilty of everything you listed up there in a addition to being on the list of
one of the worst companies to work for.
A successful company isn't necessarily doing everything right, neither is a struggling
company getting everything wrong.

There was no mention of Amazon in my submission sir. But I posit that a successful company must be doing many of the things that matter right and vice versa.

I think you meant to quote justli...but his point is valid and supports my position.

rasputinn:
Nigerian investors are scared stiff of any other form of voodoo IPO

Sure but the smart ones will be waiting for the IPO to fail then move in to buy it at a heavy discount. The Sawmer brothers made a terrible calculation with this investment.

At least uncle Sim is resting from all his troubles. Let's see how this plays out, unlike Konga, Rocket Internet owns African Internet Group and they have unicorn status on paper, let's watch and see what investors will eventually make of it. Maybe not local investors but foreign.

Ssalk:
Wow.... As if I knew. My Ph.D research proposal is on Achieving sustainable E-commerce and retail business in Nigeria. (Problem and Prospect). Jumia, konga and dealdey all included in the research.

The honest truth is, the Nigeria climate is not conducive enough for online retail business. It is cheaper to move goods via railway system than roads and air but no good railway network in the country.
Again, there is low penetration of credit system in the country, we only used debit card. Lastly , these online companies like Jumia and co don't put their time to creat any innovative idea to deal with these setbacks. Rather they are only concern about making profits.

My research is gonna be interesting.

If I was your external examiner, I will shred you on the day of your defence. Nigeria is and has been ripe for online business. We have a working, cheap and reliable postal system (NIPOST), sellers don't use them, we need to ask them why. We have several overland transporters who carry goods in addition to passengers for a small fee. On the other hand buyers do not get the options they want in their local markets hence the need for online retail business and the varied options it provides.

A marketplace like the one I stand behind that puts buyers needs first, thereby building trust while ensuring sellers stay on their toes to keep their customers happy is exactly what is needed. Just like ebay but designed for Nigerians and the peculiarities in the Nigerian online marketplace.

Thanks for this detailed insight into the intricacies, gaming and challenges of financing a good online based business model such as Jumia.

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postbox:
Jumia, the pan African online retailer present in 14 countries, maybe put up for sale. The company’s owner, Rocket Internet, is reportedly seeking an IPO for the business with a listing of shares to the value of €200m ($246m).

Rocket Internet is reportedly seeking to release cash by exploring a stock market listing for Jumia, the online retailer it helped establish in 2012. Jumia has operations in 14 African countries, and currently has 500,000 merchants using the platform, and more than 5m SKUs. It also operates a hotel booking platform and an online food delivery service connecting consumers with local restaurants.

In the first nine months of 2017, Jumia saw its losses widen to €80.7m ($99.1m), while revenues were just €57.3m ($70.4m). To put this in context, Amazon launched in 1994, and first delivered a profit in Q4 2001, seven years later. It wouldn’t deliver a full year profit until 2004. Until 2016 it was still considered unusual that Amazon delivered four consecutive quarters of profit. Jumia’s group revenues mask the importance of one market: Lagos, Jumia’s first market and by far its single largest driver of revenues. The Nigerian market generally has seen sluggish growth since 2014, although it is picking up now, and slower growth in demand has been compounded by fragile market conditions in Algeria, South Africa, Kenya among others.

Emerging markets, but profitability will be a long time coming

Since 2014, Jumia has opened up a substantial number of new markets. In these market internet penetration is typically low, online payment usage by consumers is infrequent and rare, the logistics infrastructure is undeveloped and consumer spending is unpredictable and fragile. Many of its consumers are making a transition from purchasing in traditional channels to the internet. On that front, Jumia also faces a challenge from Facebook, which serves as a platform for informal trade.

Jumia is playing a long-term strategy of developing a large number of markets and attempting to take them to scale and profitability. It will continue to burn cash for at least a decade as it is effectively creating the internet retail landscape and infrastructure in its emerging markets. Unlike Amazon, which could attack the soft targets of established bookstores, record store and general merchandisers, Jumia is having to work much harder to drive topline business growth. Aside practical issues of limited consumer spend and low internet penetration, many consumers don’t trust online platforms.

As such, Jumia’s branch into takeaway food delivery actually operates as an effective marketing tool as well as a driver of growth. Target consumers are younger, wealthier and tech-savvy. Crucially the product is high demand (when consumers are hungry, they want to feed) but low-ish engagement and complexity (if there is an issue with the food it is a problem, but not nearly as much of a problem as a defective good that needs returning). A good way to break the barrier of trust.

Where next for Jumia?

The underlying question for investors is whether they trust Jumia’s long-term bet on dominating not just internet retail but modern general merchandise retailing in its 14 country markets. In early 2016, Jumia’s parent Africa Internet Group raised €225m ($276m) from investors, just weeks after French insurance company Axa purchased an 8% stake for €75m.

IPO investors will be purchasing less than 25% of Jumia’s shares, and have a limited say in the direction of the business. We believe that Jumia has opened up too many new markets although we note that it has a strong track record of execution. In particular, we question whether Jumia’s exposure in North African markets such as Algeria, Morocco, and Tunisia fits its wider focus on Sub-Saharan Africa. We also believe that Jumia may find trading in Uganda and Tanzania – both of which have been challenging markets for foreign supermarkets – too slow in the mid-term.

The IPO will further stress test Jumia’s market expansion programme. Does it matter if Jumia withdraws from or pauses in 4-5 of its expansion markets? Probably not, in reality. No other internet retailer is going to leap in and dominate trading, and bricks and mortar supermarkets are barely expanding.

It may end up being an acceptable compromise to allow investors to focus on developing core markets like Nigeria, Ghana, Egypt, Côte d’Ivoire and Kenya. We note, for example, that in 2016 Jumia’s CEO singled out the Democratic Republic of Congo for expansion, and to date, the company has not yet commenced operations. As strategic choices go, tactical pauses in smaller markets is a small price to pay.

SOURCE: https://brandspurng.com/jumias-major-investor-rocket-internet-seeks-exit-via-ipo/

Ssalk:
Wow.... As if I knew. My Ph.D research proposal is on Achieving sustainable E-commerce and retail business in Nigeria. (Problem and Prospect). Jumia, konga and dealdey all included in the research.

The honest truth is, the Nigeria climate is not conducive enough for online retail business. It is cheaper to move goods via railway system than roads and air but no good railway network in the country.
Again, there is low penetration of credit system in the country, we only used debit card. Lastly , these online companies like Jumia and co don't put their time to creat any innovative idea to deal with these setbacks. Rather they are only concern about making profits.

My research is gonna be interesting.

i'll like to know more about your research

lobell:
If I was your external examiner, I will shred you on the day of your defence. Nigeria is and has been ripe for online business. We have a working, cheap and reliable postal system (NIPOST), sellers don't use them, we need to ask them why. We have several overland transporters who carry goods in addition to passengers for a small fee. On the other hand buyers do not get the options they want in their local markets hence the need for online retail business and the varied options it provides.

A marketplace like the one I stand behind that puts buyers needs first, thereby building trust while ensuring sellers stay on their toes to keep their customers happy is exactly what is needed. Just like ebay but designed for Nigerians and the peculiarities in the Nigerian online marketplace.

Timely delivery of goods is one of the key element in online retail business so Nipost might not work effectively in this. No matter how cheap land transport might be, you still can't compare it with railway system to sustain the sector for long term growth.
The online market place in Nigeria is a hostile one that both the sellers and buyers don't seems to get it right due so some certain factors . Lastly, research is about making argument why you feel your current work will contribute better than the previous work in the chosen field. So criticism is part of the work. Thanks.

Gucciboss:
Please tag me when you are through with the research. I'd be glad to read your work.

Sure I will.

Ssalk:
Timely delivery of goods is one of the key element in online retail business so Nipost might not work effectively in this.

Bro, when last did you use Nipost?

I still received 2 parcels via Nipost last week and I was impressed with their services.

Logistics is a big issue but there are ways around this.

dont bother,before amazon started,the infrastructure to run the business existed .Check my previous post .

lobell:
Online marketplaces need to build trust in buyers over profit and over a long period. They have to ensure buyers get what they pay for or get their money back, not some silly vouchers. Also, they need to penalize sellers who consistently receive bad reviews.

Ebay has been successful because it is a buyers market. You cannot as a seller afford to sell substandard goods or ship defective products or take a month to send an item that should have been delivered in a week maximum. You must also describe what it is you are selling to the letter, stating all flaws and damages...basically, full disclosure is encouraged. Who go buy go still buy am like that.

Buyers need to feel safe transacting on any platform. The customer is king and should be treated as such. All existing marketplaces in Nigeria place too much power in the hands of sellers and this is why a new challenger is needed in this space. One that strikes a balance between maintaining profitability for the seller and keeping the buyer safe and happy. One modelled after Ebay, ensuring sellers stay compliant while building trust in buyers.

Guess who that new challenger is? Read beneath the lines.

Ssalk:
Wow.... As if I knew. My Ph.D research proposal is on Achieving sustainable E-commerce and retail business in Nigeria. (Problem and Prospect). Jumia, konga and dealdey all included in the research.

The honest truth is, the Nigeria climate is not conducive enough for online retail business. It is cheaper to move goods via railway system than roads and air but no good railway network in the country.
Again, there is low penetration of credit system in the country, we only used debit card. Lastly , these online companies like Jumia and co don't put their time to creat any innovative idea to deal with these setbacks. Rather they are only concern about making profits.

My research is gonna be interesting.

i want to be included in your research, it will be really be interesting

ponpin234:
i want to be included in your research, it will be really be interesting

Sure I will.

Oh

Ssalk:
Timely delivery of goods is one of the key element in online retail business so Nipost might not work effectively in this. No matter how cheap land transport might be, you still can't compare it with railway system to sustain the sector for long term growth.
The online market place in Nigeria is a hostile one that both the sellers and buyers don't seems to get it right due so some certain factors . Lastly, research is about making argument why you feel your current work will contribute better than the previous work in the chosen field. So criticism is part of the work. Thanks.

I can guarantee that NIPOST will deliver in a week, two weeks tops for busy terminals like Lagos if incoming from outside the state.

Ssalk:
Wow.... As if I knew. My Ph.D research proposal is on Achieving sustainable E-commerce and retail business in Nigeria. (Problem and Prospect). Jumia, konga and dealdey all included in the research.

The honest truth is, the Nigeria climate is not conducive enough for online retail business. It is cheaper to move goods via railway system than roads and air but no good railway network in the country.
Again, there is low penetration of credit system in the country, we only used debit card. Lastly , these online companies like Jumia and co don't put their time to creat any innovative idea to deal with these setbacks. Rather they are only concern about making profits.

My research is gonna be interesting.

Hi. I woud like to follow up your research, is there anyway i can be involved?

oreayo2011:
dont bother,before amazon started,the infrastructure to run the business existed .Check my previous post .

Like I said, we have the infrastructure. Demand drives growth and improvement in service delivery. I have tested, firsthand, the reliability of NIPOST (especially when you use the registered parcel service). Your item gets delivered unfailingly or gets returned to you or they pay for it if lost or damaged. Sellers need to take advantage of our own. More sellers using them translates to more profit for them and I can assure you they will improve their services up to the point of providing tracking. I can also inform that they are currently working on including tracking for packages. It will not also take long for someone else to leverage on the increased demand and provide competition effectively checkmating their monopoly or even out-rightly taking the business from them.

the failure of any business venture is our collective failure as an entity called Nigeria.

Emmymarvel:
I pray they fucking fold up...............useless people always delivering substandard n fake goods

PearlStreet:
Bro, when last did you use Nipost?

I still received 2 parcels via Nipost last week and I was impressed with their services.

Logistics is a big issue but there are ways around this.

Honestly NIPOST has upgraded. One of my guys abroad sent me something using NIPOST recently and I tracked the whole thing till I picked it up.

I was shocked. NIPOST needs to publicize more because they are making serious progress.

lobell:
I can guarantee that NIPOST will deliver in a week, two weeks tops for busy terminals like Lagos if incoming from outside the state.

Honestly I don't know how come NIPOST is not publicizing the advances they have made of recent. You can imagine someone being able to track packages from US to Nigeria in real time. In fact when I picked the package they even updated it to say that it was picked up and added the time I picked it. I was in shock.

The only thing they need to work on is the bail they charge to pick up packages. They collect money without receipt. If they can just get that right, it won't be long before they take over finally.

Ssalk:
Wow.... As if I knew. My Ph.D research proposal is on Achieving sustainable E-commerce and retail business in Nigeria. (Problem and Prospect). Jumia, konga and dealdey all included in the research.

The honest truth is, the Nigeria climate is not conducive enough for online retail business. It is cheaper to move goods via railway system than roads and air but no good railway network in the country.
Again, there is low penetration of credit system in the country, we only used debit card. Lastly , these online companies like Jumia and co don't put their time to creat any innovative idea to deal with these setbacks. Rather they are only concern about making profits.

My research is gonna be interesting.

Bro. Please let's know when you're done. Would be nice to have a read.

@lobell, valid points but I think the attendant issues and solutions may be proffered in the thesis. Reason I'm interested in the work...

Personally, from my humble angle and in somewhat agreement with your arguments, I think we are not being organic in our eCommerce enterprises and not taking advantage of the unique landscape each emerging market poses.

A lot of vanity metrics spur the strategies and decisions asides the fact that expansion is ever so pursued without much recourse to logic and deep analysis that would allow them to feel the true pulse of the business.

Of course, the slower economic realities add to the sad mix but many have fallen trap to basing their business on some fantastical indicies that is in no short supply when fast growing emerging markets are involved.

I believe the next generation of eCommerce setups will take a lot to heart before ad during their dispensation the story has been the same from about 2 years now. Prudence, customer-centric, taking innovative advantage of the less-than-ideal infrastructure with intelligent integration...

Efritin saw the writing on the wall and decided to bail outright.

Horlami3370:
FTC, meanwhile, I'm yet to see any alert o.

please,I will like to know,if they normally pay anybody that is first to comment in a thread that made front page

casualobserver1:
Honestly I don't know how come NIPOST is not publicizing the advances they have made of recent. You can imagine someone being able to track packages from US to Nigeria in real time. In fact when I picked the package they even updated it to say that it was picked up and added the time I picked it. I was in shock.

The only thing they need to work on is the bail they charge to pick up packages. They collect money without receipt. If they can just get that right, it won't be long before they take over finally.

You're right about the charges but there are ways to beat them at their game. When we start naming and shaming them on social media, the bad eggs will be removed with time or they stop their nefarious activities.

overboard:
Bro. Please let's know when you're done. Would be nice to have a read.

@lobell, valid points but I think the attendant issues and solutions may be proffered in the thesis. Reason I'm interested in the work...

Personally, from my humble angle and in somewhat agreement with your arguments, I think we are not being organic in our eCommerce enterprises and not taking advantage of the unique landscape each emerging market poses.

A lot of vanity metrics spur the strategies and decisions asides the fact that expansion is ever so pursued without much recourse to logic and deep analysis that would allow them to feel the true pulse of the business.

Of course, the slower economic realities add to the sad mix but many have fallen trap to basing their business on some fantastical indicies that is in no short supply when fast growing emerging markets are involved.

I believe the next generation of eCommerce setups will take a lot to heart before ad during their dispensation the story has been the same from about 2 years now. Prudence, customer-centric, taking innovative advantage of the less-than-ideal infrastructure with intelligent integration...

Efritin saw the writing on the wall and decided to bail outright.

I agree with the vanity metrics and over-hyping of a particular marketplace that does nothing to ensure customer satisfaction.

Building trust in customers is key in my opinion and that is what we are addressing in our all new marketplace. you may want to check it out for yourself.

lobell:
I agree with the vanity metrics and over-hyping of a particular marketplace that does nothing to ensure customer satisfaction.

Building trust in customers is key in my opinion and that is what we are addressing in our all new marketplace. you may want to check it out for yourself.

Where and what's that? Let's know it bro.

overboard:
Where and what's that? Let's know it bro.

Look in my signature. Mods are not smiling these days...handing out bans like it was going out of fashion...and very long bans at that. I no fit shout.

casualobserver1:
Honestly NIPOST has upgraded. One of my guys abroad sent me something using NIPOST recently and I tracked the whole thing till I picked it up.

I was shocked. NIPOST needs to publicize more because they are making serious progress.

The man who revolutionised Nipost was the late Alhaji Argungu. Young, visionary man. He was being groomed to succeed OBJ as president before he died in the Bellview air crash.

That brings said, any e commerce firm that wishes to succeed in Nigeria must partner with NIPOST. Ignore this advice at your peril.