E-commerce Growth Accelerates as Technology Makes it Easier
- FinancialBuzz.com News Commentary
NEW YORK, Aug. 26, 2020 /PRNewswire/ -- The global e-commerce sector continues to grow at a striking rate as more and more people are now constantly connected to the internet. Implementations of new technologies such as 4G and 5G connectivity is expected to have a positive impact on the market growth as it provides an uninterrupted experience to the user. Moreover, the adoption of smartphones is gaining momentum at a significant rate, thus increasing the exposure of online shopping for the customer. Established organizations and large corporations are leaning towards online business due to lesser expenditure in communication and infrastructure. E-commerce offers organizations an easier outreach to potential customers, and therefore necessary exposure to business is also achieved. E-commerce is also driven due to the increasing importance of online marketing tools, such as Google ads and Facebook ads. And according to Grand View Research, Inc., the global e-commerce market size was valued at USD 9.09 trillion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 14.7% from 2020 to 2027. TD Holdings, Inc. (NASDAQ: GLG), JD.com, Inc. (NASDAQ: JD), Alibaba Group Holding Limited (NYSE: BABA), BigCommerce Holdings, Inc. (NASDAQ: BIGC), Shopify Inc. (NYSE: SHOP)
During the pandemic the shift to online shopping has swiftly accelerated, with an estimated 85% of people worldwide now shopping online, according to data provided by Facebook. Capitalizing on the opportunity, the social media announced the introduction of Facebook Shop, a new place to discover businesses and shop for products within the social media app. The new features give businesses more control over how their digital storefront looks and make creating new collections easier. Of course, companies like Amazon have also invested in making it easy for sellers and buyers. "To succeed in e-commerce, you need to have the right assortment, then make things easy to find, purchase and get delivered. This is the genius of Amazon. But there are definitely opportunities to make online shopping more 'fun'. Livestreaming is one. AR (augmented reality) and other means of enhancing utility is another," Michelle Whelan, CEO of commerce agency Geometry U.K., explained according to CNBC.
TD Holdings, Inc. (NASDAQ: GLG) announced breaking news last week, "to enter into a strategic framework agreement with Tongdow E-commerce Group ("Tongdow E-commerce") through Shanghai Jianchi Supply Chain Co.,Ltd. ("Shanghai Jianchi"), the Company's wholly owned subsidiary. Tongdow E-Commerce recently has engaged the wholly owned subsidiary of JD Digits Technology Group ("JD Digits") and launched an online commodity trading enterprise payment system on Tongdow E-Commerce's online trading platform.
JD Digits was first established as part of JD.com, Inc. (Nasdaq: JD), and later became an independent technology company dedicated to the digitalization of AI-driven industries. It uses digital technology to serve the financial and real sectors and help related industries in achieving Internetization, digitization, and intelligentization. JD Finance is one of the core business modules of JD Digit's corporate services. It aims to provide unified external services through account management, transaction settlement, payment and unites supply chain financing, financial technology, and other business segments to meet the diverse transaction scenarios and needs of corporate users in various industries, providing enterprises with a one-stop business service platform.
The Company, through its wholly owned subsidiary Shanghai Jianchi., has entered into a strategic cooperation framework agreement with Tongdow E-commerce and Beijing Tongbang Zhuoyi Technology, which is a wholly owned subsidiary of JD Digits, jointly providing customers with comprehensive services such as payment and supply chain management.
The launch of the commodity online payment platform represents the beginning of the cooperation with TD Holdings and JD Digits. In the future, the Company plans to develop deeper cooperation with JD Digits with respect to payment, supply chain financing, IoT-enhanced warehouses, etc., to provide commodity trading companies with integrated solutions for online payments and FinTech needs.
About TD Holdings, Inc.: TD Holdings, Inc. (Nasdaq: GLG) is a commodities trading service provider conducted under the brand name "Huamucheng" by the Company's wholly owned subsidiary, Shenzhen Huamucheng Trading Co., Ltd headquartered in Shenzhen. For more information please visit http://ir.tdglg.com."
For our latest "Buzz on the Street" Show featuring TD Holdings, Inc. recent corporate news, please head over to: https://www.youtube.com/watch?v=qD5gobDOZos
JD.com, Inc. (NASDAQ: JD) through its subsidiaries, operates as an e-commerce company and retail infrastructure service provider in the People's Republic of China. It operates in two segments, JD Retail and New Businesses. This week the Company announced its unaudited financial results for the three months and six months ended June 30, 2020. Net revenues for the second quarter of 2020 were RMB201.1 billion (US$ 28.5 billion), an increase of 33.8% from the second quarter of 2019. Net revenues from the sales of general merchandise products for the second quarter of 2020 were RMB64.0 billion (US$9.1 billion), an increase of 45.4% from the second quarter of 2019. Net service revenues for the second quarter of 2020 were RMB22.9 billion (US$3.2 billion), an increase of 36.4% from the second quarter of 2019.
Alibaba Group Holding Limited (NYSE: BABA) announced back in June that it hit new milestones as sellers from U.S. grow at fastest rate worldwide, U.S. buyers increase more than 70% year over year and overall transactions by U.S. businesses on Alibaba.com increase more than 100%. "Doing business online is the bridge for American small businesses through this crisis and into the next decade," said John Caplan, President of North America and Europe of Alibaba.com. "We are accelerating our transformation to get both sellers and buyers quickly set up for success and provide the critical tools and services that are required for growth - access to supply and demand, shipping and logistics, and working capital. Ultimately, our goal is to give SMBs even greater access to the $23.9 trillion global B2B ecommerce opportunity – which is six times the size of the B2C ecommerce market."
BigCommerce Holdings, Inc. (NASDAQ: BIGC) announced yesterday the availability of checkout on Instagram for eligible US merchants. BigCommerce merchants can be among the first to adopt the new feature, which provides shoppers an intuitive, seamless and secure way to purchase products they discover on Instagram in a few clicks, without leaving the app. "Creating a streamlined checkout experience is paramount for merchants looking to social commerce to drive revenue growth. The rollout of checkout on Instagram is another significant step in Instagram's evolution toward becoming an essential commerce channel for customer-focused brands," said Brent Bellm, chief executive officer at BigCommerce. "BigCommerce is proud to be one of a select group of partners to offer their customers access to this innovative new feature at launch."
Shopify Inc. (NYSE: SHOP) announced back in May new and updated products at Reunite, the company's first virtual event that hosted members of Shopify's global merchant community. Reunite, which was also open to Shopify partners and the public, covered the latest product news in areas like finance, retail, and shipping to showcase how Shopify is helping merchants future-proof their businesses amid COVID-19. "These are unprecedented times. This is going to be one of the most challenging chapters in all of our lives. But entrepreneurs are the kind of people who make the most out of what they've got. They're the people who can see opportunity when everyone else sees despair," said Tobi Lütke, CEO of Shopify. "Right now, we're dedicating ourselves to helping as many small businesses as possible survive this. We've looked far and wide into our roadmaps for everything that might be helpful right now, and have tried to pull as many things forward as we could, shipping them and getting them out the door for our merchants."
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