53B..mmmake I hear
How much is the company worth then?

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.

There always sell inferior stuff the only thing I get from them is T-shirt

bionixs:
don't mind them. when they were doing wayo wayo BLACK FRIDAY,shebi It was sweeting them?

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.

Bloggers.... How much is the whole of Jumia.

dalynch:
But how comes. Could it be from expired goods?.Lord have mercy

It could be from selling fake products.

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

And how did they gain this billion

Shey if them give me 1 billion inside shey I will be praying for them not to loose the remaining 57 billion

lmm4real:
With their mumu services and customer care. Whe is Mr. Ondot self, that yamhead that is always on his way but never shows up.

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?

jerflakes:


I'm confused

They don't sell anything

They just link buyers to sellers

So how did they lose?

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!

wontiboje:
Despite several cuts and tweaks to its business model and structure, it appears all is not still well with Jumia.

This is because, after two years of pressure and record losses, Jumia said it losses rose beyond forecast for the full year 2017

Jumia, Africa's largest eCommerce company said it made a net loss of N53.3 billion for the full financial year of 2017. This is a major negative and huge difference compared to N40.5 billion reported in 2016.

Full-year revenue for Jumia came in at EUR93.8 million compared to EUR89 million reported in 2016.

There are various sides to this result and the more we look at the company's summary result released by Rocket Internet, its parent company, the more we see more signs of worry for Jumia going forward.

Source: https://pageone.ng/2018/04/13/jumia-losses-parent-company/

Various structural changes have been applied to the business model of Jumia in the last three years. On August 30, 2016 Africa eCommerce Holding GmbH, the holding company of Jumia, was merged into Africa Internet Holding GmbH (formerly trading under Africa Internet Group).

In its usual flowery comment, Rocket Internet said in its official statement that:

In June 2016, all business models of Africa Internet Group were renamed under the Jumia brand.

It is now very clear that Rocket Internet plans to sell off the company via an IPO was a sound decision given the fact that after five years, there are no signs that Jumia would break-even before it caves-in.

Konga, Jumia's arch-rival has also witnessed its near-end before it was sold to Zinox Group for undisclosed amounts.

While Kinnevik and Naspers have not disclosed the terms of the transactions, there are feelers that the company was sold for a ridiculously low amount with up to 99% loss on equity.

Lie

Chai.


Stock market listing is coming.


Jumia is the real scam. Oyingbo-pe-pe

The sooner jumai realise that E-commerce is not profitable in Nigeria the better.

Tunndeh:
The sooner jumai realise that E-commerce is not profitable in Nigeria the better.

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.

I thought one Oga for Jumia was making mouth on Medium the other day

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.

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.

SleakBuzzPR:


They handle the logistics....thats how they lose money.

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.

booblacain:
What's the cause of these losses?

Too much adverts.

biggy26:

Bad govt policies that led to a sharp drop in the purchasing power of Nigerians.

Lol. Professor. You think Jumia only operates in Nigeria?

booblacain:
What's the cause of these losses?

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

Follygunners:
This is always the problem when there's a lack of financial sustainability and adequate leverage capabilities within a poor economic atmosphere... Foolish org.

They should have based their business model around the majority/poor average 9ja instead of the few rich ones. Trying to pull a Jeff Bezos, right? Foolish pple!

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.

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.

You made good points BUT sellers too sell fake things for Jumia abeg!

BeardedTraveler:



Lol. Professor. You think Jumia only operates in Nigeria?

Senior lecturer, exactly what are you talking about?

PotatoSalad:

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.

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).

givan:

Jumia's shabby business practices set it on the part of great loss.

Please summarise their strategies tgat led to their big losses

jerflakes:


I'm confused

They don't sell anything

They just link buyers to sellers

So how did they lose?

I wonder ooooooo

biggy26:

Senior lecturer, exactly what are you talking about?

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

BeardedTraveler:



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

Oh really? will check it again.

tokrizy:
what are u saying..Mr man stop confusing urself..hope u ve eaten today sha? ??

Enlighten him if you have answers.

PotatoSalad:

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.

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.