Why We Are Hiring Jumia’s Growth Team: The Tunisian Ecosystem’s Gratitude Towards Jumia – Lessons for the Future of E-Commerce.
It is with deep regret and a hint of sadness that we see Jumia closing its doors in Tunisia, shortly after the disappearance of Founa. The latter, which targeted a premium clientele, was the ultimate “early adopter”; it was especially a lifestyle for some.
Meanwhile, Jumia decided to play in the big leagues by making digital consumption accessible to the entire Tunisian population, much like a superhero of e-commerce.
As an active player in this ecosystem, I want to express my gratitude for Jumia’s immense contribution to the democratization and education of e-commerce in our country.
Jumia’s investments, particularly in logistics, technology, communication, and the media promotion of online shopping, have introduced a new way of consuming, providing a reference framework for other companies wishing to venture into the market.
NO DRAMA: The 110 employees who find themselves unemployed due to this closure will certainly have promising opportunities in a rapidly transforming market, both locally and internationally. Recruiting them can also enhance learning within your company.
LEARNING PART: It is essential to question Jumia’s business model. The marketplace business model, combined with low margins and high acquisition costs, has been difficult to sustain in an environment where profitability is crucial.
When it comes to an e-commerce platform, particularly a pure player (where transactions are exclusively digital), it is vital to master indicators like the break-even point, maximum acquisition cost, and minimum average basket value. In Tunisia, the low average basket values and high delivery costs have made the profitability equation very challenging. Let’s not forget the poor banking rate and the eternal debate about COD…
PERFORMANCE WISE: In customer acquisition, Jumia relied on television and urban advertising. It was like trying to catch a fish with a leaky net. In such a competitive market, acquisition must be more targeted and optimized through digital channels, similar to GLOVO or Airbnb.
Digital acquisition allows for more precise tracking, which is essential for ensuring profitability. Furthermore, a strategy based on retention and customer LTV (lifetime value) is fundamental, as profitability in this model never occurs at the first purchase (we often talk about 60 to 90 days after the first purchase).
The use of modern tools like Meta Advantage Plus and Google Performance Max, as well as email automation, which allows for better automation of follow-up and retargeting processes, could have, in my humble opinion, optimized these aspects.
Another area for improvement concerns the management of retargeting and CRM. A more rigorous tracking of customer segments would have allowed for better campaign adaptation since extending ads for already purchased products reflects a lack of optimization.
LONG STORY SHORT: Daily KPI tracking is crucial, and the strength of a growth team is more critical than simply managing marketing budgets.
Finally, I thank Jumia for all its efforts in this complex environment. This is not a failure but a rich learning experience for the entire sector. The challenges are now greater, but the lessons learned are invaluable and will benefit all players in the Tunisian e-commerce ecosystem.
Given that profiles who have gone through this experience are a valuable asset, and since we are in the process of recruiting and expanding the Performance and Growth team, we are interested in Jumia’s Performance team.
Please contact us at [email protected] .