Jumia has diversified its profit model by introducing several revenue lines. These include revenue from first-party sales, advertising, value-added services and shipping fees. This is from 27.9 million orders.
Furthermore, who is the CEO of Jumia South Africa? I spoke with Jumia co-CEO Jeremy Hodara to get his insights on these two questions and on issues that have faced the company in the past.
You asked, what is wrong with Jumia? Jumia left fragmented markets that are hostile to ecommerce with underdeveloped digital payment services and a poor logistical and delivery infrastructure that led to high managing operations costs. In addition, the company downsized its operations in Nigeria, its biggest market.
Frequent question, why is Jumia dropping? Despite the revenue growth, marketplace revenue, which management had recently billed as the future of the business, stalled, falling from 7.3% to $25.3 million. Instead, first-party revenue was the main driver of the company’s growth.
Additionally, who are Jumia competitors?
- Souq — owned by Amazon — is leading in the Egyptian market.
- Jiji — with over 8 million monthly active users, Jiji is a strong competitor in Nigeria.
- Konga — has been an war with Jumia for years in a battle to dominate the Nigerian ecommece market.
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.
How profitable is selling on Jumia?
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.
Is Jumia a registered company?
The company is registered in Germany, headquartered in Dubai and has its team of developers in Portugal. The hashtag #JumiaIsNotAfrican became popular on social media and the company has struggled to shake off this stain on its image. By the end of 2018, Jumia had 4-million active consumers on its platform.
What countries does Jumia operate in?
Currently, Lagos, Nigeria–based e-tailer Jumia is at the forefront of Africa’s e-commerce movement. The company has warehouses in 10 countries, including Nigeria, Kenya, Egypt, Tanzania, and the Ivory Coast, and offers thousands of items to a public eager to buy quality goods.
How many Nigerians are using Jumia?
Nigerian e-commerce platform Jumia had 6.8 million active customers in the last quarter of 2020, up from 6.1 million LTM (last 12 months) active customers in the corresponding quarter of the previous year.
Is Jumia better than Konga?
Verdict: Jumia is rated higher than Konga in terms of global internet engagement.
Why is Jumia successful?
The rebalancing of the business initiated at the end of 2019 has increased Jumia’s exposure to faster-selling items and reduced advertising spending, supporting unit economics. Jumia has also begun using its logistics dominance to act as a platform company for deliveries, similar to a company like GrubHub.
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Why is jumia going up?
Jumia Technologies (NYSE:JMIA) stock is rising higher on Monday following news of a deal with United Parcel Service (NYSE:UPS). The deal between the two companies will have Jumia handling the last-mile delivery of packages shipped through UPS. This allows UPS to expand its business in Africa to more areas.
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Shares of WISH can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include WeBull, Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Robinhood, Fidelity, and Charles Schwab.
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.