Market News

Jumia delists vendors selling counterfeits

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Jumia Kenya CEO Sam Chappatte during a product launch last week. PHOTO | DIANA NGILA

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Summary

  • CEO Sam Chapatte said customer complaints on products received were a major cause of delisting vendors.
  • Mr Chapatte said vendors found culpable were warned and fined up to Sh25,000 with repeat offenders getting delisted.

Online retail platform Jumia has delisted hundreds of vendors it blames for selling counterfeit or fake items on its site.

Without disclosing the number of ‘bad vendors’ removed, country chief executive Sam Chapatte said customer complaints on products received were a major cause of delisting vendors.

He said vendors who missed delivery deadlines on several occasions were dropped for hurting the firm’s reputation.

“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,” he said.

Mr Chapatte said vendors found culpable were warned and fined up to Sh25,000 with repeat offenders getting delisted.

“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,’ he said.