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INVESTIGATION: Jumia And Co — The Fraudulent Discounts Of E-commerce Companies - Crime - Nairaland

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INVESTIGATION: Jumia And Co — The Fraudulent Discounts Of E-commerce Companies by Shehuyinka(op): 9:59am On Nov 22, 2019
In the weeks leading up to the Jumia Mobile Week, a lot was said about the period that was expected to be one of great, uncommon deals. The week, fourth of its kind from the e-commerce company, came to a close on Sunday, March 25, 2018, recording thousands sales. Adverts were placed everywhere. Hardly could you surf the Internet without encountering flashy pictures of smart phones and accessories with one implied message: grab your copy now before it is too late!

We were told it was the biggest mobile event in Nigeria, with flash offers, special daily deals, discounts on over one million deals, low prices on tablets and accessories, and free delivery to select locations. We were told the week would not only feature discounted prices but the greatest deals you could get, better than what even Black Friday had to offer. We were told this was a rare opportunity to replace our boring devices or get our dream smart phones. But, motivated by these mouth-watering promises to surf generally through www., it turned out certain things just didn’t seem right.

A N60,000-WORTH SCREEN PROTECTOR?

At first sight, it appears as though what is offered for sale is Samsung Galaxy S6. The product name reads ‘Generic Samsung Galaxy S6 G920F Nillkin PE+ Tempered Glass Screen Protector for Samsung Galaxy S6 G920F’, so maybe it is in fact a Samsung Galaxy S6 ‘+’ a tempered glass screen protector, because how else can the original price be N59,999? But no, what is really being sold is just a Nillkin PE+ screen protector that is custom-made for Samsung Galaxy S6.

Jumia claims the price to be N19,999, and that this is only after they deducted a whopping 67% from the actual price of N59,999. But the problem here is Nillkin screen protectors – and probably any kind of screen protectors – are really not that expensive. Exactly the same product is sold here for $21.08 (N7,600). AliExpress sells the same brand of glass screen protector but for LG G5, and it is $11.24 (N4,050) per piece. And on the website of Konga, another local company acquired by Zinox in February, what we have is N5,000 for Nillkin Tempered Full Cover Glass for Samsung Galaxy S7 Edge.

It therefore appears the suspect product description achieves two purposes – one, give the impression of a discount when in fact the discounted price is quadruple what is found elsewhere; and second, mislead buyers into thinking what they are buying is a phone, and not just a screen protector for the same brand of phone.

A GENERATOR AND REFRIGERATOR FOR HALF THE PRICE? NOT SO FAST

Sellers on Jumia appear to often be in a cheerful and charitable mood – except that they sometimes exaggerate the level of charity given. A good example is this Sumec Firman Generator ECO 1990S. “It is originally N70,000. But we are giving it out at a discount of 44%, so pick it up for N39,500,” they seem to be telling the potential buyer cruising through the attractive website. But the buyer who is sceptical enough to do a simple Google search should discover the same product on Konga’s website going for N54,500.

On sale also is a Hisense Side-By-Side Refrigerator that has its price slashed by 45% from N350,000 to N192,600. Whereas, on Konga, the same product goes for N215,000, with the original price stated as N275,000.

MOBILE WEEK DEALS

It is not only items outside the scope of the recent mobile week that have their discount percentages suspiciously bloated. One example is this Generic M26 Bluetooth Smartwatch. On Jumia’s store, this product, part of the mobile week deals, sells for N4,480, after a 70% discount from the original price of N15,000. Again on Konga’s website, the same wristwatch is sold for N8,000. There is still a price cut worth more than N3,000; but the value of the product has been inflated, leaving the customer to think he has hit a jackpot of 70% discount, when in fact it is only 44%.

Another striking example, still under mobile week deals, is the sale of one product with two conflicting prices though on the same page (same row, in fact) of the website. It is the Universal S530 Mini Wireless Bluetooth In-ear Earphone Headset. Here it says the product is N3,500 but is sold at a discounted price of N2,549. And here, the original price is N3000 while the promo price is N1500.

NOT A BLACK SHEEP AMONG WHITE ONES

Consumers prefer patronising online stores to physical ones. One of the big reasons for this is that e-commerce companies often give out huge discounts and coupons. But these “gifts” are generally for good business reasons, not just because of charity or corporate social responsibility – or most times, not even at all. The strategy is adopted when a vendor wants to push slow-moving products or plans to get more customers, merchants, advertisers and investors, thereby giving competitors a tough time. And so they partner with the manufacturers to provide price cuts, or even consider them a temporary loss and investment.

Fictitious pricing, as the practice is called, is the questionable version and is a strategy adopted by companies across the world. It is an advertising tactic where discounts are offered based on a prior-reference price, whereas the advertiser had never offered the product for sale at that reference price. It is understandable why companies are increasingly embracing this strategy. According to a study published by the Harvard Business School, “fake list prices have a strong influence on purchase outcomes, with a 1-dollar increase in the list price having the same positive effect on purchase likelihood as a 77-cent decrease in the actual selling price”. But they certainly can have their downsides too: public scandals and law suits, to start with.

In 2015, Flipkart, India’s biggest online store, was at the centre of an embarrassing scandal when one of its products, a pair of canvera wedges, were put up at the discounted price of Rs399 and the original price stated as Rs799. There was only one problem: if you zoomed in for a closer view, you found a message from the manufacturer boldly written on the strap: Rs399 only. A customer noticed this self-contradiction and posted a snapshot on the company’s Facebook page. The company eventually suspended and blacklisted sellers found guilty of arbitrarily hiking product prices before tagging with a generous discount.

READ MORE: https://www.icirnigeria.org/investigation-jumia-and-co-the-fraudulent-discounts-of-e-commerce-companies/

Re: INVESTIGATION: Jumia And Co — The Fraudulent Discounts Of E-commerce Companies by Chikpat(m): 10:17am On Nov 22, 2019
Shehuyinka:
In the weeks leading up to the Jumia Mobile Week, a lot was said about the period that was expected to be one of great, uncommon deals. The week, fourth of its kind from the e-commerce company, came to a close on Sunday, March 25, 2018, recording thousands sales. Adverts were placed everywhere. Hardly could you surf the Internet without encountering flashy pictures of smart phones and accessories with one implied message: grab your copy now before it is too late!

We were told it was the biggest mobile event in Nigeria, with flash offers, special daily deals, discounts on over one million deals, low prices on tablets and accessories, and free delivery to select locations. We were told the week would not only feature discounted prices but the greatest deals you could get, better than what even Black Friday had to offer. We were told this was a rare opportunity to replace our boring devices or get our dream smart phones. But, motivated by these mouth-watering promises to surf generally through www., it turned out certain things just didn’t seem right.

A N60,000-WORTH SCREEN PROTECTOR?

At first sight, it appears as though what is offered for sale is Samsung Galaxy S6. The product name reads ‘Generic Samsung Galaxy S6 G920F Nillkin PE+ Tempered Glass Screen Protector for Samsung Galaxy S6 G920F’, so maybe it is in fact a Samsung Galaxy S6 ‘+’ a tempered glass screen protector, because how else can the original price be N59,999? But no, what is really being sold is just a Nillkin PE+ screen protector that is custom-made for Samsung Galaxy S6.

Jumia claims the price to be N19,999, and that this is only after they deducted a whopping 67% from the actual price of N59,999. But the problem here is Nillkin screen protectors – and probably any kind of screen protectors – are really not that expensive. Exactly the same product is sold here for $21.08 (N7,600). AliExpress sells the same brand of glass screen protector but for LG G5, and it is $11.24 (N4,050) per piece. And on the website of Konga, another local company acquired by Zinox in February, what we have is N5,000 for Nillkin Tempered Full Cover Glass for Samsung Galaxy S7 Edge.

It therefore appears the suspect product description achieves two purposes – one, give the impression of a discount when in fact the discounted price is quadruple what is found elsewhere; and second, mislead buyers into thinking what they are buying is a phone, and not just a screen protector for the same brand of phone.

A GENERATOR AND REFRIGERATOR FOR HALF THE PRICE? NOT SO FAST

Sellers on Jumia appear to often be in a cheerful and charitable mood – except that they sometimes exaggerate the level of charity given. A good example is this Sumec Firman Generator ECO 1990S. “It is originally N70,000. But we are giving it out at a discount of 44%, so pick it up for N39,500,” they seem to be telling the potential buyer cruising through the attractive website. But the buyer who is sceptical enough to do a simple Google search should discover the same product on Konga’s website going for N54,500.

On sale also is a Hisense Side-By-Side Refrigerator that has its price slashed by 45% from N350,000 to N192,600. Whereas, on Konga, the same product goes for N215,000, with the original price stated as N275,000.

MOBILE WEEK DEALS

It is not only items outside the scope of the recent mobile week that have their discount percentages suspiciously bloated. One example is this Generic M26 Bluetooth Smartwatch. On Jumia’s store, this product, part of the mobile week deals, sells for N4,480, after a 70% discount from the original price of N15,000. Again on Konga’s website, the same wristwatch is sold for N8,000. There is still a price cut worth more than N3,000; but the value of the product has been inflated, leaving the customer to think he has hit a jackpot of 70% discount, when in fact it is only 44%.

Another striking example, still under mobile week deals, is the sale of one product with two conflicting prices though on the same page (same row, in fact) of the website. It is the Universal S530 Mini Wireless Bluetooth In-ear Earphone Headset. Here it says the product is N3,500 but is sold at a discounted price of N2,549. And here, the original price is N3000 while the promo price is N1500.

NOT A BLACK SHEEP AMONG WHITE ONES

Consumers prefer patronising online stores to physical ones. One of the big reasons for this is that e-commerce companies often give out huge discounts and coupons. But these “gifts” are generally for good business reasons, not just because of charity or corporate social responsibility – or most times, not even at all. The strategy is adopted when a vendor wants to push slow-moving products or plans to get more customers, merchants, advertisers and investors, thereby giving competitors a tough time. And so they partner with the manufacturers to provide price cuts, or even consider them a temporary loss and investment.

Fictitious pricing, as the practice is called, is the questionable version and is a strategy adopted by companies across the world. It is an advertising tactic where discounts are offered based on a prior-reference price, whereas the advertiser had never offered the product for sale at that reference price. It is understandable why companies are increasingly embracing this strategy. According to a study published by the Harvard Business School, “fake list prices have a strong influence on purchase outcomes, with a 1-dollar increase in the list price having the same positive effect on purchase likelihood as a 77-cent decrease in the actual selling price”. But they certainly can have their downsides too: public scandals and law suits, to start with.

In 2015, Flipkart, India’s biggest online store, was at the centre of an embarrassing scandal when one of its products, a pair of canvera wedges, were put up at the discounted price of Rs399 and the original price stated as Rs799. There was only one problem: if you zoomed in for a closer view, you found a message from the manufacturer boldly written on the strap: Rs399 only. A customer noticed this self-contradiction and posted a snapshot on the company’s Facebook page. The company eventually suspended and blacklisted sellers found guilty of arbitrarily hiking product prices before tagging with a generous discount.

READ MORE: https://www.icirnigeria.org/investigation-jumia-and-co-the-fraudulent-discounts-of-e-commerce-companies/
Jumia na scam finally. I bought like five items, I am not enjoying any presently...the worst of it all na the infinix hot s that damaged kn it's own beyond repair. Do I have to talk about the useless shoe I bought from their site or the nonsense kitchen ware or another onehuh?
Never again will I use infinix phone and I am not sure I have business with Jumia: again
Re: INVESTIGATION: Jumia And Co — The Fraudulent Discounts Of E-commerce Companies by Nickisindigo(m): 7:02pm On Nov 22, 2019
Chikpat:
Jumia na scam finally. I bought like five items, I am not enjoying any presently...the worst of it all na the infinix hot s that damaged kn it's own beyond repair. Do I have to talk about the useless shoe I bought from their site or the nonsense kitchen ware or another onehuh?
Never again will I use infinix phone and I am not sure I have business with Jumia: again
the only problem here is they can't be sued
Re: INVESTIGATION: Jumia And Co — The Fraudulent Discounts Of E-commerce Companies by Hoodbilonia: 5:58am On Nov 23, 2019
Since i started shopping on aliexpress
Brothey i wwnt to market last in 2016
Naija clothes na nonsense fakes.pooe quality
I love jack and jones.
I never see designer like am esp dia jeans
Standard. Shoprite sell dia 4 20k
Ali sells for 8k.
I bought 2 jeans that year from konga wit jumia
My guy i gas tear them in anger,over fake cheap shit.u go see am fine online
But once its time for claims,na diff tin u go see.things to buy online konga,jumia.
Tv, home theater,hanes boxers, surati oil pef,flavours,electronics generally. The rest tina thr na fake fake fake
Re: INVESTIGATION: Jumia And Co — The Fraudulent Discounts Of E-commerce Companies by timstone(m): 4:11pm On Nov 23, 2019
Hoodbilonia:
Since i started shopping on aliexpress
Brothey i wwnt to market last in 2016
Naija clothes na nonsense fakes.pooe quality
I love jack and jones.
I never see designer like am esp dia jeans
Standard. Shoprite sell dia 4 20k
Ali sells for 8k.
I bought 2 jeans that year from konga wit jumia
My guy i gas tear them in anger,over fake cheap shit.u go see am fine online
But once its time for claims,na diff tin u go see.things to buy online konga,jumia.
Tv, home theater,hanes boxers, surati oil pef,flavours,electronics generally. The rest tina thr na fake fake fake
How can I buy things on Ali express
I need the step to follow
1 Reply

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