The COVID-19 pandemic has affected every industry in the world but also accelerated many trends, and eCommerce might be one of the biggest.
Many retail platforms witnessed unprecedented traffic increase in 2020, surpassing even holiday season traffic peaks. The coronavirus-led boom in online sales caused a surge in revenues and market capitalization of the market’s biggest players.
According to data presented by Buy Shares, the market capitalization of Amazon, Alibaba Group, JD.com, eBay, and Rakuten, as the five largest eCommerce companies globally, hit almost $2.6trn in October, a 90% jump year-over-year.
Amazon and Alibaba Combined Market Cap Surged by $1.1T YoY
In September 2019, the combined market cap of the five eCommerce giants amounted to $1.38trn, revealed Yahoo Finance data. By the end of the year, this figure jumped to $1.58trn.
After a slight drop to $1.57trn in March, it rose to $2.1trn in June, a 33% increase since the beginning of 2020. In the next three months, this value jumped by $490bn, reaching almost $2.6trn in October.
Amazon witnessed an 83% increase in market capitalization year-over-year. In December 2019, the combined value of shares of the world’s leading eCommerce company hit $920bn. Over the next three months, this figure rose to $972bn, despite the stock market crash in March. In June, Amazon smashed through the one trillion benchmark and continued growing. Statistics show the retail and eCommerce giant`s market cap stood at $1.58trn in the last week of October, a $720bn increase year-over-year.
The company recently reported its better-than-expected third-quarter results, which revealed double-digit revenue growth. Amazon revenue spiked 37% YoY to $96.15bn between June and September, up from $92.7bn expected. Earnings per share hit $12.37, much more than $7.41 expected.
Alibaba Group, the world’s second-largest eCommerce company, witnessed a 90% growth in market cap, with the total value of shares rising from $436.1bn in September 2019 to $831.4bn in October.
The revenue of the Chinese tech giant jumped 30% YoY to $22.8bn in the third quarter of 2020, with adjusted EBITDA up 28% year-over-year. The number of active consumers on China retail marketplaces hit 757 million, 15 million up from the twelve months ended June 30.
Chief Financial Officer of Alibaba Group, Maggie Wu, said: “Our domestic core commerce business continued growing steadily during the post-COVID-19 environment in China through higher purchase frequency and consumer spending, while cloud computing revenue grew 60% year-over-year, driven by the acceleration in digitalization across all industries and businesses of all sizes in China.”
Statistics show the combined market cap of the two largest eCommerce companies globally stood at $2.4trn in October, a $1.1trn increase year-over-year.
JD.com Witnessed a 215% YoY Growth, the Biggest Increase in 2020
China’s largest online retailer by revenue, JD.com, reported rising profitability and sales growth in its first quarter of being listed on both Wall Street and in Hong Kong. In August, the company reported quarterly net profits of Rmb16bn ($2.3bn), up from Rmb600m a year ago. Revenue jumped 34% YoY to Rmb201bn, up from the Rmb191bn forecast by analysts. The annual buyers’ count also rose by 30% to 417 million, the most significant increase in two years.
JD.com also announced an investment of $830 million from private equity group Hillhouse Capital in its JD Health unit, which offers an online pharmacy and medical consultations.
In December 2019, the market capitalization of the Beijing-based company hit $51.7bn. In the next six months, this figure increased by 45% to almost $60bn. The noticeable upward trend continued in the following months, with the market cap soaring by 215% YoY to $129.6bn in October, the most significant increase among the top five companies.
As the fourth-largest eCommerce firm by market cap, eBay witnessed a 16% growth in a year, with the combined value of shares rising from $31.9bn in September 2019 to $37.2bn in October.
The market cap of Japanese eCommerce company Rakuten, the fifth-largest eCommerce giant on the list, rose by only 3% in this period reaching $13.7bn at the end of last month.
Jumia Grabs Opportunity for Black Friday Deals
Black Friday is a concept that originated in the United States, but the yearly retail fever has had a popularity boom across Africa in recent years, with customers moving to take advantage of the best deals that retailers have available.
Jumia, which is a marketplace with its focus placed on Africa quickly grabbed this opportunity when it first introduced the Black Friday event about nine years ago across its markets in Africa, focusing mainly on Egypt and Cairo which are the company’s top two cities when considering volume of orders.
Since its inception, the company has witnessed staggering levels of success with the event, and company data reveals that the love which consumers have for Black Friday has been increasing across the continent every year.
During the 2020 Black Friday event, the top sellers on the Jumia platform saw a 141% year-on-year increase in the amount of items sold, with one out of three clicks on average being a new customer. The company also said that it witnessed an increase in brand appetite across every one of Jumia’s 10 markets during last year’s sale, which lasted every Friday in November.
The trend is expected to continue this year’s version of Jumia’s Black Friday, as it is running from November 5 until November 30.
The company which is based in Nigeria has entered into partnerships with major brands like Adidas, HP, Unilever and Diageo, as well as with thousands of sellers in order to provide consumers the best deals on a very wide range of products.
The CEO of Jumia Nigeria, Massimiliano Spalazzi told Lagos-based Vanguard that the Black Friday programme has been a success every year, and is the biggest sale of the year.
He also stated that the 2021 Black Friday campaign will place focus on strengthening the company’s position as a brand within the African market, and providing support to the sellers.
NQR Payment Solution Excites Nigerians: Everyone Can Now Pay Sharp Sharp
Since the NQR payment solution was introduced to the Nigerian market in March of this year, it has reached millions of Nigerians across major markets in different states. Lagos, Ibadan, Abuja, Kano, Uyo, and Portharcourt are just a few of the states that have witnessed the fast seamless, and reliable NQR payment solution.
Business owners and customers across Nigeria have embraced NQR en masse as a result of the market penetration drive, citing the convenience, speed, and reliability of the payment option.
The NQR Payment Solution is a secure QR-code-based payments and collections platform that allows customers and business owners to accept and make payments for goods and services. The payment system will bring together all of the country’s closed QR code schemes for a more consistent user experience and faster digital adoption.
The campaign was led by several popular celebrities who thrilled the market crowds and showcased how the NQR works. Mercy Johnson, Mercy Aigbe, Odunlade Adekola, Real Warri Pikin, Saddiq Sani Saddiq, Bisola Aiyeola, and Nedu were a few of the ambassadors for NQR. They encouraged business owners to sign up for NQR, and encouraged customers to make payments with NQR.
The NQR payment solution team recently toured Southern Nigeria, with comedians Edo Pikin and Real Warri Pikin leading the train to sensitize the people about how the NQR merchant app works and how customers can #PaySharpSharp with live demonstrations.
NQR agents also went through the markets educating both business owners and customers about NQR’s benefits. Representatives from several commercial banks were also on ground to address business owners’ concerns. Everyone learned about the NQR payment system and had the opportunity to test it out as well as express their satisfaction with it.
NQR is now available in a store near you.
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