Quick Answer: Why is jumia not profitable ?

Within a few weeks, Jumia’s stock suffered a spectacular decline, weighed down by allegations of fraud and concealed losses, a scathing report by a notorious short-seller, embarrassing fraud lawsuits in New York courts and a public relations disaster over its identity.

Best answer for this question, is Jumia Nigeria profitable? Despite the business model shakeup, Jumia is still not profitable, and it is also not growing as fast as it once was. Jumia’s customer base grew to 6.9 million, 500k customers (6.9%) higher than 6.4 million in Q1 2020.

Also, why Ecommerce is not successful in Africa? We have shown that e-commerce has significant potential for growth in Africa. However, substantial barriers to e-commerce development on the continent remain, the most important being cybercrime, a poor legal framework to support e-commerce, and inadequate consumer protection.

Furthermore, who are Jumia competitors?

  1. Souq — owned by Amazon — is leading in the Egyptian market.
  2. Jiji — with over 8 million monthly active users, Jiji is a strong competitor in Nigeria.
  3. Konga — has been an war with Jumia for years in a battle to dominate the Nigerian ecommece market.

Correspondingly, what percentage does Jumia charge sellers? In line with the Federal Government’s directive on the Finance Act 2019, the Value Added Tax (VAT) applicable on goods and services offered by Jumia would be increased from 5% to 7.5% effective on the 1st of February 2020.

Is eCommerce growing in Africa?

African online retail has been growing fast in recent years and this trend is forecasted to continue. Several factors are contributing to this impressive growth. Africa has the youngest and second largest population in the world. Thus, there is potential for a vast digital audience.

Is Africa ready for e-commerce?

Going by statistics alone it is obvious that Africa is an up and coming market for e-commerce. Though African countries are not ranked as high as other markets like the US and Europe when it comes to e-commerce, the online shopping phenomenon is spreading fast across the continent.

What are the challenges of e-commerce in developing countries like Tanzania?

Organizations adopting e-commerce in emerging countries which includes Tanzania, face problems such as lack of telecommunications infrastructure, lack of qualified staff to develop and support e-commerce sites, lack of skills among consumers needed in order to use the Internet, lack of timely and reliable systems for …

Is Jumia better than Konga?

Verdict: Jumia is rated higher than Konga in terms of global internet engagement.

What is the full meaning of Jumia?

According to a user from Washington, U.S., the name Jumia is of Swahili origin and means “The name Jumia comes from the Swahili word ‘Jumuiya’, meaning Independence”. According to a user from Kenya, the name Jumia is of Swahili origin and means “Jumia comes from the swahili word jumuiya, which means collective”.

How does Jumia make their money?

Jumia.com.ng Asides making revenue from the profit margin on items sold from its inventory, Jumia — the eCommerce platform — also charges commissions (up to 25%) on all sales made by third-party sellers.

How many staff does Jumia have?

With over 5,000 employees in more than 10 countries in Africa, Jumia is led by top talented leaders offering a great mix of local and international talents and is backed by very high-profile shareholders.

What is Jumia’s competitive advantage?

The operating model is built to help Jumia achieve rapid growth and short term success. Their emphasis on rapid expansion and high capital expenditures to achieve this has given them an advantage in the market. Jumia is better funded than its competitors and has a strong international base of support.

Is Jumia trusted?

No to Fake products JUMIA’s goal is to build the best online shopping experience to gain customer’s trust; this is why we only sell genuine and original products. JUMIA is abiding by the legal rules related to the Customer Protection regulations.

How long does Jumia take to pay sellers?

Vendors would recieve payments for items delivered, 8 days after their payment cycle ends. All vendors are allocated a business day for payments, either Tuesday or Wednesday.

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