Analysis of online business in Uganda : a case study of Jumia Uganda

Abstract

The purpose of this study was to analyse the performance of Jumia online business in Uganda. To achieve the purpose of the study, the following specific objectives were pursued: To determine the online business tools used by Jumia Uganda. To establish factors responsible for the failure of online business in Jumia Uganda. And to develop strategies that can help minimize online business failure in Jumia Uganda. A cross-sectional case study design was used. This design was used because it enabled the researcher to focus on a single organization to gain an in-depth study of the problem with in a limited time scale. Results from the study showed that majority of the respondents strongly agreed that shopping online is reliable, safe and Convenient. They recommended that many online companies like Jumia focus on meeting customer expectation by ensuring the virtual product matches with actual product in addition to other recommendations. Respondents shared a wide range of tools used to access Jumia, with the mobile phone ranking highest at 19%. Peer discussion with colleagues was the most preferred method of accessing information that influenced the respondents’ decision to buy from Jumia. This means that Jumia needs to ensure its products and services are quality to encourage positive word of mouth. Results from the study showed that while online shopping reduces cost for consumers and to some extent business, respondents agreed that it eases ability to reach more potential customers and serve customers faster. Results also showed that it reduces costs of marketing and advertising, and it also increases the visibility of your business through search engine marketing. Results from the study showed that the majority of the respondents agreed that they find it difficult to shop online because of expensive and or bad internet, (internet speed is low), and poor service delivery from the online companies. The study recommended companies have to focus on changing behaviour of customer as well, customer expectations while booking and buying through the web. Research on customer perception, customer expectation, level of customer satisfaction, compensation in case of bad services, secured online payment system etc. should be deeply researched while adapting to e-commerce.