E-commerce platform Jumia has delisted an unidentified number of vendors from its platform for selling counterfeit products.
The move, according to Jumia’s Country Chief Executive Sam Chappate, materialized following increased complaints from customers.
“Delisting bad vendors has improved our sales by 50 per cent. Product quality and customer feedback as well as vendor behaviour inform our business strategy. Currently, we are lending money to small and medium enterprises supplying goods to retail chains,” the Jumia Kenya boss said in a statement.
Mr. Chappate consequently revealed that vendors who missed delivery deadlines on multiple occasions were also let go for damaging the firm’s reputation. Vendors found at fault were issued with a fine of Ksh. 25,000 with habitual offenders getting the axe.
“It is a punitive move to deter bad vendors and those left working with us must receive regular training at our training centre in Nairobi to ensure they follow our rules to build customer confidence. That drives traffic on our platform,’ Mr. Chappate explained.
Last week, the e-commerce platform opened up its online platform to brands and corporate organizations for advertising.
“20% of active internet users in Kenya are on our platform each month. We know our customers well – what they shop, how much they spend, etc – and can use this to present relevant adverts to them. This can enable our customers to discover relevant products & services, and will become a powerful digital marketing channel for advertisers,” Mr. Chappatte said then.
Mr. Chappatte further emphasized that their messages will reach highly targeted segments, right at the moment of purchase – e.g for DSTV the ads will be presented to people who are buying new TVs, or when selling beer, key messages can be shown to customers who are looking at a competitor’s products.
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