Ecommerce News: Amazon Surpasses $2 Billion Mark in India, Etsy Stock Sinks

By Mariliana Fotopoulou Saturday, July 25, 2020

As Amazon passes a large international milestone and Etsy faces stock struggles, we explore the latest news surrounding major ecommerce players.

Amazon Hits a Milestone in India

Two company executives from ecommerce giant Amazon recently announced that exports from small and medium sellers in India had crossed the $2 billion mark.

In 2015, Amazon started the Global Selling program with a vision to export products to global markets - particularly India. Since its launch, the program has reportedly supported more than 60,000 Indian sellers in the efforts to export products to 15 Amazon websites.

Amazon CEO Jeff Bezos has said that Amazon will invest $1 billion to help small and medium businesses in India become digitized. It is believed that the export industry of Indian-made goods will be worth about $10 billion by 2025.

However, current sales are but a snippet of India’s exportation of goods and services, which is estimated to be close to $530 billion in the financial year ended this past March. Exporters in India target the US as their main market, focusing primarily on selling during annual events such as Black Friday and Cyber Monday.

Etsy Faces a Stock Slump

Yahoo Finance reports that ecommerce marketplace Etsy closed at $101.97 on July 15, which is -1.71% from the previous trading session.

Prior to its next earnings release, Etsy is expected to report earnings per share (EPS) of $0.40, up 185.71% from the same quarter last year. The Zacks Consensus Estimate for earnings shows net sales of $327.60 million, an increase of 80.89% from last year.

Etsy places its focus on the connection between buyer and seller. At least 46.4 million buyers and 2.7 million sellers stay connected through the platform. 30% of the items that are sold on Etsy can be customized, and 88% of the products are unique to Etsy alone.

According to The Motley Fool, 70.2% of the platform’s revenue is generated by seller fees for listing items, the transactions made, and the completed payments. The remaining percentage of Etsy’s revenue comes from services such as advertising and discounts.

Last year, the company’s income was up by 35.6%, and management expected to reach the $1 billion mark this year. However, the COVID-19 pandemic shook the global economy, causing profitable losses. Etsy’s official net income in 2019 was $96 million.

Etsy falls into the “special goods” category of the ecommerce world. With an expected annual gross of $100 billion, the company further estimates that it will grow to $170 billion by 2023. Despite their recent stock slump, Etsy should have few problems with reaching this goal in time.

Working based on estimates like this can be risky for investors, as Etsy’s stock could go either way. It will depend on how the economy grows after the pandemic is over for good. With the high rates of unemployment and future employment uncertain, fewer customers may shop online. The global economy is currently too unstable to make confident predictions.

About the Author

Mariliana Fotopoulou

Mariliana has an MSC in consumer analytics and business strategy. She has a special interest in fast-moving industries and big data.

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