Jumia to be Liable for Defective Goods
E-commerce firm Jumia will now be liable for the safety and quality of products sold on its platform by third-party merchants.
Although Alibaba figured out right from the start that consumer trust is a cornerstone for growth (and offered an innovative escrow service on their platform), it took Jumia more than a decade to finally confront this reality.
Unfortunately, this is only coming after a government watchdog put them to task, according to a great article by Patrick Alushula from Business Daily Africa.
The COMESA Competition Commission, which has been investigating the conduct of Jumia Group since September 2021, has now forced Jumia to make the changes in a move aimed at protecting consumers.
Apparently, the so-called “Amazon of Africa” has decided to exclude itself from any and all responsibility of transactions on its platform.
Despite its quick and stunning rise to fame Jumia’s stock is suffering a spectacular decline reflecting its lackluster financial performance, and massive layoffs and closures have already been announced.
In a recent market research report we outline five lessons that may be useful for the “Amazon of Africa” and to all businesses out there – business lessons that can be, and should be, learnt from one successful Chinese bootstrapper – Alibaba.
You can read the original article here or check out our Maverick Analysis Report: Jumia – Up Like a Rocket. Down Like a Stick. Five Lessons From A Chinese Bootstrapper.