While the effects of COVID-19 pandemic are on-going around the world, the movement in e-commerce and cross-border e-commerce continues. Global e-commerce market grows more than 40% during the pandemic. While Amazon is planning 10.000 new employments by the end of the year, Jeff Bezos’ wealth is more than 200 billion dollars. Aegean Exporters’ Association Coordinator Chairman Jak Eskinazi stated that individuals above 65 years old will play an important part among individuals who shop for the first time with e-commerce. According to “US Retail Index” research prepared by IBM, 20% growth was expected in e-commerce this year but it has reached the level of the next 5 years due to pandemic. Here is the recent news from global e-commerce and cross-border e-commerce ecosystem…
COVID-19 lead 41% growth in e-commerce in 3 months
Global COVID-19 pandemic continues to expand e-commerce ecosystem. While all large traditional retailers are dismissing employees due to pandemic, coronavirus restrictions are supporting e-commerce. The latest data show that people are surging to online shopping. The pandemic is transforming retail habits. In 2020, growth in global e-commerce was predicted as 22%. But just in 3 months, there has been a 41% increase in global e-commerce. In this framework, it is estimated that global e-commerce will exceed 7 trillion dollars in 2024.
83% of Etsy sellers are women
The sellers on Etsy which is an online marketplace for handmade and vintage products is mostly women. On Etsy, you can buy an ocean scented candle, an old t-shirt, a farmhouse stand with tapered legs or an antique flashlight. There are approximately 65 million products on Etsy 83% of the sellers on this online marketplace are women.
The growth of Etsy is surprising. The first product sold when the platform launched in 2005 was an 8-dollar Flamingo printed zipper bag. The online retail company reported 1 billion dollars gross margin in the same year. Etsy announced that this number reached 5 billion dollars in 2019. But the company has approximately 14 billion dollar market value.
Hisarcıklıoğlu: Business must carry their products and services to the digital environment
The Union of Chambers and Commodity Exchanges of Turkey (TOBB) Chairman Rifat Hisarcıklıoğlu announced that e-commerce to traditional commerce ratio reached 14%. Hisarcıklıoğlu highlighted that e-commerce will be a habit for consumers after the coronavirus and business must carry their products and services to the digital environment.
TOBB has various activities to digitalise SMEs. Accordingly, “Turkey Technology Meetings” online event is organised under TOBB and with the support of the Ministry of Commerce. Hisarcıklıoğlu who spoke in this event stated that information and experiences on digital transformation, IT, e-commerce and cross-border e-commerce are transferred to SMEs.
TOBB Chairman said, “digitalisation and e-commerce are the most highlighted topics around the world.” and added “the e-commerce volume in 2020 have increased 64% in the first 6 months compared to the same period of the previous year. It increased from 56 billion TL to 92 billion TL. The share of e-commerce in general commerce as 8% last year. Now, it reached 14%. Actually, the global trend is in the same way. When we consider the world, we can see that fast-growing company choose e-commerce. This is the result of using technology in the best way.”
“Ultra-rich Asians plan to enter e-commerce.”
DBS chairman Joseph Poon which is one of the largest private banks in Southeast Asia stated that rich people of Asia is stocking money as they believe there will be good buying opportunities in the market after the pandemic. Poon stated that customers are holding cash more than ever and said, “ultra-rich believe that the market will have good buying options when the economic effects of the pandemic disappear. Some are planning to enter e-commerce and logistics.” DBS is estimated to manage 184 billion dollar asset. The bank announced 3.66 billion dollars of cash inflow in the first half. This is two times more than in the same period last year.
Jak Eskinazi: People above 65 years old will play an important role in e-commerce
Aegean Exporters’ Association Coordinator Chairman Jak Eskinazi evaluated the development of e-commerce during the pandemic and said, “pandemic brought the development of e-commerce 5 years forward.” Eskinazi who spoke in the 6th International İzmir Business Days meeting stated that individuals above 65 years old will play an important part among individuals who shop for the first time with e-commerce. Aegean Exporters’ chairman remarked that e-commerce is a good candidate to replace retail sales and e-commerce is growing 30% annually. Eskinazi remarked, “In 2021, the global e-commerce market is estimated as 5 trillion dollars. We need to make our marketing and sales channels digital.”
“Pandemic brought e-commerce 5 years forward.”
According to “US Retail Index” research prepared by IBM, 20% growth was expected in e-commerce this year but it has reached the level of the next 5 years due to pandemic. According to the research, e-commerce will grow 20% this year due to pandemic. On the other hand, retail sales will decrease by 60%. It is highlighted that in-store sales decreased by 25% in the first quarter of 2020 and this reached 75% in the second quarter.
Other results of the research are as follows:
- Consumers who work from home during the quarantine verged to online training.
- While the demand for clothes decreased, the demand for categories such as grocery, alcohol and home improvement supplies increased.
- According to the report, in-store delivery for online shopping might increase store traffic.
- Walmart and Target had great earning due to e-commerce investment.
- In the last quarter, Walmart increased sales by 97% and Target increased by 273%.
- Amazon reached the highest quarterly profit and the sales increased by 40%.
- Online retail sector increased by 31.8% compared to the first quarter and 44.5% on yearly basis and reached 211.5 billion dollars.
- The ratio of e-commerce in total retail sales for the second quarter was 16.1%.
- Since June, hiring in digital and technical roles in sectors such as technology, digital, e-commerce, health and fast consumption increased. Most of the hiring and promotions are online.
- Most firms are working from home; some works are completely digitalised.
Amazon will increase employment to 10.000 this year.
American e-commerce giant Amazon announced to employee total of 10.000 new people in 2020. 7.000 of the jobs will be in the UK. The giant company will create new jobs mainly in corporate offices and two new (order) processing centres in the northeast and central England. Jobs will be created in more than 50 locations. The new employment move of Amazon will increase the total workforce in the UK above 40.000. 10.000 people will be warehouse workers, engineers, HR, IT, health, security and finance experts.
Jeff Bezos’ wealth exceeded 200 billion dollars.
Personal wealth of Jeff Bezos, founder and CEO of American online shopping giant is increasing. Accordingly, Bezos’ wealth exceeded 200 billion dollars and he is the first person with this wealth. Amazon’s owner Bezos especially increased his wealth during the coronavirus period. The increase in Bezos’ personal wealth is after a 2% increase in Amazon shares. In line with the share increase, Bezos’ wealth increased by 4.9 billion dollars and reached 205 billion dollars.
Bezos’ wealth on 01 January 2020 was approximately 115 billion dollars. Bezos added approximately 90 billion dollars to his wealth during the pandemic. Amazon’s owner gave some of his Amazon shares to his former wife MacKenzie Scott. Jeff Bezos’ wealth would be 267.6 billion dollars if he kept those shares. Following Bezos, Bill Gates is the second richest person around the world with 116.1 billion dollar wealth.
Handmade products are sold with e-commerce
Women in Mersin sell handmade products with e-commerce. Tablet computers were distributed under Women Entrepreneurs for Women Project (GIKA). This way, women started to sell their products online. In this project, entrepreneurship and e-commerce training is provided to women. 136 women who completed the training and earned certificate received tablet computers for e-commerce. Women who started e-commerce with these tablets say that they have expanded their markets with internet sales.
Digital application of the Ministry of Commerce got full marks from ITC.
“Women Entrepreneurs Online Network Program of Turkey” and “Export Academy Program” by the Ministry of Commerce was referred as “perfect” by “SheTrades Outlook” platform created under International Trade Centre (ITC) by United Nations (UN) and World Trade Organisation (WTO). Ruhsar Pekcan, the minister of commerce indicated digitalisation mobilisation in trade and said, “We continue to transfer our projects towards women and young entrepreneurs to electronic space. We are supporting our exporter women and young people in the digital world.”
Under this program, network meetings with women entrepreneurs are organised in 27 cities in August. The work to expand this network to 81 cities continues. In 4 online program organised since April, approximately 2.000 entrepreneurs are informed about the processes in cross-border e-commerce.