Today Jumia revealed:
• it has suspended some staff over an $18m sales fraud
*is facing “several” lawsuits in New York over its IPO
• losses continue to widen to more than $70m in the second quarter alone
•Shares down 14%
kwanza, congratulations for bringing full info you beetle.
this online shop model is pretty new here. and as usual, the african attempts to defraud his employer na “madeal” for quick personal benefit. we’re stuck.
I think hiyo fraud intokea kwa hizo item huwa zimeandikwa “shipped from abroad” na kitu iko tu hapa Moi Avenue…so waafrika wanaibia hapo kwa shipping fees. Its a collaboration between some staff members na hao suppliers.
They play the system, don’t be dumb enough to think that Bezos is the richest man when his company is not profitable. Staki debate I’m pointing that the point is misleading.
Amazon revenue is huge because they sell a lot of crap and are involved in numerous types of businesses but their profits are non existent.
Amazon doesn’t make profits. They rely on their big name to attract more and more resellers.
Bezos sells a name. That’s how he survives. If people don’t trust Amazon, he is finished.
So he survives without profits, simply because his website sells a lot!! Customers and resellers trust him for that and believe that this is a longterm objective.
Sijui kama umeelewa?
Similarly shareholders trust him and inject capital into his brand.
They have bought into the belief that this is a company with a long term plan… one day they will make profits just keep on selling. And Bezos rewards shareholders promptly including himself to maintain that trust.
Lastly Amazon is nowadays highly diversified. New businesses within amazon cover their losses. And when investors, customers, resellers see these new businesses they trust him even more. So Amazon never lacks capital, BUT THEY DON’T MAKE PROFITS.
Biashara zote hazifanani. Duka ya internet ni tricky.
And don’t forget that Bezos is a perfectionist. His website and delivery system are darn near perfect.
Customers trust that such that even when they hear that Amazon makes no profits, they never leave Amazon because they know Amazon delivers.
So ecommerce is not for the greedy, you first build the trust over many moons by injecting huge amounts of money, using clever SEO tactics and making sure the customer is always happy.
kizungu mingi tu na jargon he doesn’t even understand. I think he is a very idle and lone guy. Gashwin and makena same gang. Very old also :D:D najua wataumwa lakini lazima ukweli tuseme