Jorrit Steinz who participated to ECOM LEADERS CLUB webinar organised with İş Bankası as the main business partner from Holland explain the effects of coronavirus on e-commerce..
The first webinar of ECOM LEADERS CLUB (ELC) under WORLDEF hosted Jorrit Steinz, ChannelEngine CEO. Steinz explained the effects of coronavirus (COVID-19) on cross-border e-commerce in Europe in the webinar that is organised with the main business partnership of Türkiye İş Bankası and had limited number of participants. Steinz stated that coronavirus pandemic acted as a catalyser for various retailers, emphasised that e-commerce sales increased in all product categories and consumers will continue to save after the pandemic.
ECOM LEADERS CLUB started “Global Webinar Series” with the main business partnership of Türkiye İş Bankası to increase the cross-border e-commerce potential of the members. The first one of the webinar series welcomes Jorrit Steinz, Holland-based ChannelEngine CEO that facilitates sales with millions of product sales in more than 100 online markets. Steinz shared statistics about e-commerce market in Europe during pandemic and provided detailed market analysis.
First special webinar of ELC was live on 22 April Wednesday between 15:00-17:00. E-commerce managers of leader brands such as Arzum, Altınbaş, Ayakkabı Dünyası, Atasay, Avva, Civil, Colins, Damat, EnglishHome, Evkur, Evgör, Fenerbahçe, Morhipo, Mavi Jeans, Rue Online, Tchibo, Desa, D’s Damat and Kayra participated to the webinar. Total of 163 participants applied to participate in the webinar and there was a huge interest from chamber of commerce and industry as well as development agencies. 114 people joined the webinar and panellists answered more than 40 questions in 1.5 hours.
“Every click and every traffic converts to a marketplace.”
Steinz mentioned marketplace changes for international brands and retailers and stated that “every click and every traffic converts to a marketplace” by emphasising that online retailers focus on organic traffic in e-commerce. Steinz talked about the properties giant marketplaces in different countries and specially talked about USA giant Amazon. Steinz said, “various retailers stick to Amazon’s operating system. If you are selling on Amazon, you are competing with more than 600 million products. Amazon is a large marketplace and the competition is high.”
“Brands need to retake the control.”
“Most of the product searches and sales are on marketplaces. This trend will continue to increase. Operation models of webstores and current platforms like Google, Instagram and Pinterest are changing. For example, they collect payments and process orders”. Steinz continued, “Brands need to retake the control. Content on marketplace stores must be complete, attractive and compatible with brand guidelines. Product range must be defined with the newest product series. Distributors, usability and price levels must be monitored. Companies that want to increase sales must master new sales methods on various platforms.”
“E-commerce sales will reach 6.5 trillion dollars in 2021”
Jorrit Steinz gave some numbers for global e-commerce sales. He reminded that total retail e-commerce sales around the world was 2.8 trillion dollars in 2018 and said, “This number is estimated as 4.9 trillion dollars in 2020 and 6.5 trillion dollars in 2021. It is expected that 75% of e-commerce sales in 2021 will be on marketplaces. There will be approximately 3.6 trillion dollars of e-commerce sales in 2021.”
“COVID-19 acted as a catalyser”
Jorrit Steinz explained the effects of coronavirus pandemic that has positive or negative effect on almost all sectors on e-commerce and cross-border e-commerce sales in Europe. “COVID acted as a catalyser. It has been a catalyser for brands that sell to end consumers.” Steinz added that “pandemic has been a driving force for slow companies. There are more online sales than previous months. In the last few months, sales in studio devices like cameras, home and office products and sports equipment categories increased. We especially see an increase in home-related sales.”
“People will save for a while after the pandemic.”
Steinz emphasised that e-commerce sales in almost all product categories increased due to pandemic. He stated that this increase was not much in automotive and jewellery groups but the sales of two marketplaces that sell dish soap increased sales by 5% compared to previous month. Young CEO emphasised increasing shipment and delivery problems with increasing e-commerce sales and said, “There was a decrease in fashion category products. In the last two weeks, we see an increase in these categories. People who rarely shopped online started to shop online.”
When his views for the post-pandemic was asked, Steinz said, “I think people will be afraid of spending money at the beginning. This is why they will not make luxurious spending or go out for dinner. They will save. They will start purchasing after waiting for a while. When the pandemic ends, retailers will experience liquidity problems. You will feel sad when you go to a store and can’t find the product and you will buy online. I think this transformation will be fast.”
Who is Jorrit Steinz?
Young entrepreneur Jorrit Steinz is working on e-commerce for 16 years. In the last 12 years, he conducted his own e-commerce operations called SB Commerce, Vtwonen and Nationale Geschenkbon. He is still the CEO and market integrator of ChannelEngine.com he established in 2013. Steinz has expertise in B2C, B2B and D2C e-commerce, marketplace, SaaS, advanced scalable internet applications, e-commerce supply chain integration and system integration.