A massive boom in click-and-collect trends is expected to accelerate Walmart’s pandemic-driven momentum through 2021.
According to the research data analyzed and published by ComprarAcciones.com, Walmart’s online sales will grow by 21.2% to $64.62 billion in 2021. Its share of US online sales will rise from 6.7% in 2020 to 7.1% in 2021.
Based on the latest NRF ranking, Walmart is the world’s biggest retailer, followed closely by Amazon. Its total sales for 2020 – both online and offline – amounted to $559 billion, more than $200 billion ahead of Amazon’s figure.
Click-and-Collect Purchases will Grow by 15% to $83 Billion in 2021
Walmart’s US online sales for 2021 will almost double eBay’s estimated $38.67 billion. They will also be higher than the combined total of $60.59 billion that Best Buy, Target and The Home Depot will generate.
However, the big box retailer will be far behind the top US online marketplace, Amazon. Amazon’s sales are projected to reach $367.19 billion, nearly six times the Walmart total. Its share of US online sales will increase from 39.8% to 40.4%. Third-party vendors on the platform will grow sales by 16.5% to $220.39 billion. That will be 60% of total sales.
Among the factors driving Walmart’s growth is its huge brick-and-mortar footprint which drives online sales via click-and-collect. It has more than 4,700 stores in the US and 90% of Americans live within a 10-mile radius of one of them.
The click-and-collect trend saw significant growth in 2020. According to an eMarketer report, US shoppers made purchases worth $72.46 billion using the method. Compared to the 2019 total of $35.02 billion, the figure marked a growth rate of 106.9% YoY. It accounted for 9.1% of all online purchases, up from 5.8% in 2020. The growth is expected to carry into 2021. Total sales are also set to rise by 15.2% to $83.47 billion.
Jumia’s Gross Merchandise Value Drops 13 Percent in Q1 2021 Despite Lockdown
Jumia, Africa’s leading online marketplace, recorded a 13 percent decline in Gross Merchandise Value (GMV) from €189.6 million in the first quarter (Q1) of 2020 to €165.0 million in the first quarter of 2021.
This was despite Amazon, Alibaba and other global e-commerce companies posting high GMV due to the surge in online orders because of ongoing movement restrictions in most nations.
Annual Active Consumers rose by 6.9 percent to 6.9 million in the quarter under review, up from 6.4 million in the same quarter of 2020, the leading e-commerce stated in its financial statements.
Orders grew by 3 percent year on year to 6.6 million from 6.4 million posted in the corresponding quarter of 2021.
Gross profit expanded by 10.9 percent from €18.4 million in Q1 2020 to €20.4 million in Q1 2021. While gross profit after fulfillment expense rose by 149.5 percent to €6.2 million, up from €2.5 million achieved in Q1 2021.
Sales and advertising expense moderated to €8.1 million in the quarter under review, representing a decline of 9.1 percent from €8.9 million posted in Q1 2020.
Technology and content expense stood at €6.9 million in Q1 2021, below €7.2 million in Q1 2020. G&A expense, excluding SBC improved from €24.4 million decline posted in Q1 2020 to €20.3 million decline in Q1 2021.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) also improved by 24.2 percent to a €27 million decline in Q1 2021 from €35.6 million.
Similarly, operating loss improved by 23 percent from €43.7 million posted in Q1 2020 to €33.7 million in Q1 2021.
Commenting on the company’s performance Jeremy Hodara and Sacha Poignonnec, Co-Chief Executive Officers of Jumia, said “Our first quarter results reflect solid progress towards profitability. The drivers remain consistent: selective and disciplined usage growth, gradual monetization and continued cost discipline. The first quarter of 2021 was the sixth consecutive quarter of positive gross profit after fulfillment expense, which reached €6.2 million, more than doubling year-over-year, while Adjusted EBITDA loss contracted by 24% year-over-year, reaching €27.0 million”.
“Our strategy to increase our exposure to everyday product categories continues to yield positive results, enhancing the relevance of our marketplace for consumers. We are making further inroads in payment and fintech with 37% of Orders in the first quarter of 2021 completed using JumiaPay. Last but not least, we have raised over $570 million over the past six months, strengthening our balance sheet and increasing our strategic flexibility.
“We are confident we have all the right ingredients to continue to build a growing business across both our e-commerce and fintech activities.”
Amazon Makes $300k Revenue Per Employee, But eBay Makes 3x More
The latest report from HelpCenter team has shown that among the three e-commerce rivals – Amazon, Alibaba, and eBay – the latter is the most efficiently productive. With $811,024 revenue per employee, eBay’s workforce efficiency exceeds its competitors nearly 3 times, leaving Amazon with $297,381 and Alibaba with $285,540 revenue per employee behind.
The results were calculated based on official data from the selected e-commerce companies. Amazon earned a staggering $386 billion last year with an army of 1.298,000 employees, followed by Alibaba’s $71.98 billion generated by 252,084 workers, and
eBay’s $10.30 billion (12,700 employees).
Better employee engagement leads to higher work efficiency
Managing existing human resources, onboarding high numbers of new employees, and keeping them all engaged have not been easy for e-commerce giants as well, and that might have affected each company’s revenue per employee as a result.
Although Amazon managed to bring the company’s revenue to its all-time highs, it’s also the most popular e-commerce platform that likely had to face the biggest challenges once the demand for online shopping increased. Therefore, the U.S. retail giant had to expand its team significantly and now employs over 1 million people for the first time ever.
Similarly, Alibaba Group welcomed 150 126 people to join their team in 2020, resulting in a nearly 60% increase from 2019. On the contrary, eBay lost 600 people in 2020 (4.51% decline compared to 2019), yet the company still managed to keep its revenue per employee nearly 3 times higher than its competitors.
The HelpCenter app’s co-founder Ernestas Petkevicius commented on the challenges of the coronavirus outbreak:
“It is clear that COVID has put some of the workers in these companies at greater risk than others. Amazon and Alibaba have many more frontline workers and also had to hire many more new employees to keep up with demand, while Ebay was exempt from this huge issue and was more efficient as a result. Nevertheless, it is impressive how all of them dealt with the coronavirus issues and grew top line revenue at immense pace.”
Onboarding new people and managing thousands or, in Amazon’s case, over million of people brings various organizational challenges, hence, can impact employee engagement which is vital not only for controlling costs but can also lead to up to 18% higher growth in revenue per employee.
Although all three companies have officially presented plenty of steps to support and protect their workers, some were criticized for taking weeks to implement the measures, which left employees irritated.
To get the best out of the e-commerce golden age, businesses will have to keep an eye on ongoing trends and adjust, quickly – not only by meeting customer demands but sincerely caring about those who also are a crucial part of further growth, their employees.
Kwik Delivery Releases Prestashop Plugin; Becomes Most Integrated Delivery Platform With e-commerce Frameworks In Africa
The ‘oars’ are definitely not resting at Kwik Delivery at this time! Just weeks after the release of its plugins for Shopify and Magento, Kwik Delivery announces the release of its plugin for Prestashop. This new plugin is a milestone as Kwik Delivery is now fully integrated with the “Big Four” of e-commerce frameworks: Magento, WooCommerce, Shopify and now Prestashop.
Delivery plugins are a critical technology brick in the growth of African e-commerce by allowing thousands of merchants to offer reliable, secure and efficient last-mile delivery services to their customers. By installing the plugin, businesses no longer need to worry about on-time deliveries after-sales as Kwik handles it for them. Kwik delivers within 2 hours in Lagos and 1 hour in Abuja after pickup and will soon expand its service to new cities.
“These are key milestones for us in enabling the growth of e-commerce in Nigeria,” commented Romain POIROT-LELLIG, Founder & CEO of Kwik Delivery. “We are working to ease the logistics hassles faced by both businesses and their customers after-sales. Just providing the network to make this possible is not enough. The added value brought by Kwik Delivery starts from the fulfillment systems of merchants, all the way to the doorsteps of buyers.”
The Prestashop plugin is free and easy to install and use. The plugin allows buyers to get real-time shipping rates between merchants’ addresses and the buyers’ delivery addresses. Buyers can directly place orders to be delivered by Kwik Delivery at the checkout of Prestashop stores.
Since its launch in 2019, Kwik Delivery has introduced the concept of “just-in-time” last-mile deliveries in Nigeria and has pioneered an approach of deep integration with e-commerce frameworks that proves to be indispensable to the growth of Africa’s e-commerce, fostering trade across Africa. Kwik Delivery is the trading name of Africa Delivery Technologies SAS and the mobile app is available on iOS and Android.
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