Cross-border e-commerce and e-commerce ecosystem in Turkey and around the world are developing. Amazon is expanding the drone delivery network. Walmart had record growth in e-commerce ecosystem operations in the 2nd quarter Amazon doubled net profit during the pandemic. Zalando increased active customer base 20% in 2020 to 34 million. World Economic Forum organises virtual briefing for post-COVID-19 e-commerce ecosystem axis. Hepsiburada set Petrol Ofisi gas stations as delivery points. Here are the developments and news from cross-border e-commerce and e-commerce ecosystem in Turkey and around the world…
Amazon “flying delivery” attack
Globally famous giant marketplace Amazon had drone delivery license under “Amazon Prime Air” name from the US Federal Aviation Administration (FAA). Seattle-based e-commerce and the cross-border e-commerce giant is offering an alternative logistics solution for shipment management. Drones step in for faster and more autonomous delivery. The company aims to deliver max. 2.25kg packages in 30 minutes. Drones with an autonomous driving mechanism are carried with an electrical motor. Drones with AI-supported sensors are developed to identified unexpected objects.
E-commerce ecosystem giants grew with pandemic restrictions
There are winners and losers of the economy in COVID-19 period. While e-commerce giants like Amazon, Etsy, Hepsiburada and Walmart increased their sales and profits, traditional retailer point of sales is dismissing employees. The large traditional retailer is dismissing their employees because of the pandemic. For example, on 18 August, British brand Marks % Spencer announced to dismiss 7.000 employees. On the same day, Amazon announced to hire 3.500 people in the US. On contrary, coronavirus restrictions supported e-commerce ecosystem and cross-border e-commerce. According to cross-border e-commerce and e-commerce ecosystem data, the pandemic is transforming retail habits. Accordingly, cross-border e-commerce or international e-commerce increased by 41 in the first 3 months of 2020.
The largest British supermarket chain Tesco has a strong growth in online activities. Therefore, 16.000 people, employment opportunity occurred. Walmart reported enormous sales in e-sales in the 2nd quarter. Amazon doubled its net profit in the 2nd quarter under the influence of the virus. German fashion and lifestyle e-commerce ecosystem racer Zalando increased active customer base by 20% in the first half of 2020 to 34 million.
PttAVM received “safety stamp”.
The Ministry of Commerce stated “safety stamp” to prevent stocking and prohibitive price in the e-commerce ecosystem. In this framework, e-commerce stores are audited and prohibitive prices are identified. The implementation predicts to close these stores. In this framework, PttAVM.com is the first e-commerce platform with safety stamp. An online store gives no chance to recover to prohibitive price. The investigation was started against 44 sellers that set prohibitive prices in the pandemic. The agreements with the sellers with prohibitive prices were cancelled. Audits are continued to prevent victimisation of the citizens.
PttAVm safety mechanisms steps are as follows; the customer chooses a product from any store and completes payments. The order amount is transferred to the PTT pool account. The product is received from warehouse specified by business partner by PTT Kargo employees. PTT Kargo employees deliver the product to the customer. The customer receives and checks the product. Credit card information is not stored on the system.
Women opened “organic e-commerce platform”
“Kadınların Elinden” (From Women’s Hand) social start-up that introduced female producers in Anatolia with larger markets is included in Post-Incubation program of Bilgiyi Ticarileştirme Merkezi (BTM). Under the project, training and equipment supports are provided to female producers. Additionally, support in logistics, legal and laboratories are provided. Kadınların Elinden project which was officially live on June 2018 introduced female producers in Anatolia with larger markets.
The project has an innovative aspect for e-commerce ecosystem. This process from the field to tables is turned into a transparent process with blockchain-based technology with sensors. With the QR codes on the products, users can see the production location, story, tests, logistics information and many other details of the product. The project has more than 150.000 users and continues to grow as a start-up that actively sells on more than 100 platforms. The project aims to be the most technology and innovative food company in the Turkish market and the vision to be a strong brand that represents Anatolia.
Hepsiburada set Petrol Ofisi gas stations as delivery points.
Hepsiburada that expanded application field with Hepsimat delivery model adds Petrol Ofisi gas stations as delivery points. The delivery model developed with the collaboration of two giant firms will be the first delivery model that uses gas stations as the product delivery points in the e-commerce ecosystem. The application will first start in Petrol Ofisi gas stations in İstanbul Levent and Üsküdar. Hepsiburada customers can receive their orders from certain Petrol Ofisi stations on a suitable day and time for 24/7. In 2018, Hepsiburada started Hepsimat service which the customers can receive their orders from delivery pints other than their homes and workplaces. By the end of 2020, Hepsiburada plans to increase the number of Hepsimat delivery locations to 650.
E-commerce sales in men’s clothing increased
Men’s clothing brands achieved more than 100% growth in online sales in the e-commerce ecosystem. The experts interpret this as “men discovered e-commerce”. Approximately half of the men shopping in this category are new customers. Men’s clothing e-commerce websites offer new generation experience to their customers. Many new generation applications, from combination and style consultancy to size guidance, from personalized fashion experience to video online sales service, increase the rise in the men’s clothing category. Mobile app download rate among men increased as well. Innovative shopping experiences are increasing among young consumers. Experts remark that easier applications and services for male consumers have increased the revenues of the brands and e-commerce websites.
Online market customers are increasing.
People who were distances to markets in the pandemic preferred online markets. In this framework, the online market category grew by 400% in the first 6 months of 2020. 1.8 billion TL market was created in this category. In this process, giant online marketplaces entered the market race. Migros and Hepsiburada already estimated this market. Now, Morhipo and Trendyol are selling market products. The consumer is choosing fast delivering brands in this category.
According to experts, 60% of the consumer gained by the e-commerce ecosystem in the pandemic will be permanent in Turkey. The indicator was that online market shopping continued in the new normal period after 1 June. Therefore, retailers plan to increase their e-commerce ecosystem investments by 100%. Compared to 2018, online market shopping volume increased by 30% in 2019 and reached 2.8 billion TL. In 2022, it is estimated that online market shopping will reach 8 billion TL volume.
According to research conducted on 8 countries under United Nationals Trade and Development Conference, 15% of the amount per shopping in 2019 was 700 TL or higher. This ratio increased to 21% during a pandemic. The ratio of average cart amounts 350 TL or above decreased from 38% to 31%. According to the categories, the highest demand was for tea, coffee, vegetables, fruit and dairy products. According to the UN report, 60% of the people of Turkey will shop online more frequently than before. This is predicted as 53% in Italy, 32% in Switzerland, 30% in Germany and 77% in China.
Research shows that 54% of global consumers will spend more time on online market shopping during a pandemic. 46% of the global consumers will continue to purchase online instead of physically going to a market in the post-COVID-19 period. This ratio has increased to 54% in the 25-34 age group.
E-commerce grew by 44% in Torbalı.
E-commerce sales grew by 44% in Torbalı, İzmir. Accordingly, e-commerce ecosystem sales in the province increased from 335 million TL to 550 million TL. The e-commerce firms in the province increased sales. The demand for open areas and camping is high due to pandemic. Therefore, there has been a 300% increase in camping equipment category including camping chairs, grills, tents and tables. Various firms in the province are exporting to 40 countries with e-commerce.
Digital commerce around the world after the pandemic
World Economic Forum is organising a briefing called “Digital Trade in the World after Covid-19” in cooperation with the South China Morning Post. Since the physical movement of goods and people were restricted due to COVID-19, digital trade is carried to a virtual setting. Operations that digitally activate the goods and services including cross-border e-commerce, digital payments, teleconferencing with business partners around the world are more important than ever. But as the pandemic continues and national restrictions increase, how does technology affect this complex global commerce environment? The answer to these questions will be considered in a virtual briefing on 2 September 2020 at 09.00 – 10.00 HKT (03.00 – 04.00 CEST).
- Ankiti Bose – Zillingo Chief Executive Officer and Co-Founder
- Ziyang Fan – World Economic Forum Head of Digital Trade
- Jack Zhang – Airwallex Chief Executive Officer and Co-Founder
- Josh Kallmer – Global Head of Public Policy and Government Affairs at Zoom
- Nelson Chow – HKMA Chief Fintech Officer
- Eugene Tang, South China Morning Post Business Desk Editor
E-commerce and cross-border e-commerce training from ATSO
Antalya Chamber of Commerce and Industry (ATSO) will organise “E-Commerce and Cross-Border E-Commerce” training under “ATSO AKADEMİ” “E-Commerce, Cross-Border E-Commerce Training and Consultancy Project”. The training will be organised online on 7-8 September 2020 at 11:00-17:00. Website infrastructure, website hosting and hosting training will be provided. Training will be free for 1 year. In this program, payment systems and shipment contracts necessary for all e-commerce websites will be collectively provided by the firm.