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E-commerce: Ireland Misses E-commerce Opportunities with Only 32% of its Online SMEs Selling Products
J&P Comments
Irish SMEs are missing out on golden opportunities by not selling their products and services through their websites. As the Irish E-commerce market is currently valued at €12.3 billion, businesses with an online presence could be generating a lot more sales if they sold through their website.
E-Commerce: DHL Express Opens New Logistics Hub in West Germany
DHL has invested $136 million into opening a new logistics centre in Cologne, West Germany. The facility is 15,000 square metres in size and incorporates new technologies so that 20,000 shipments can be processed per hour. As the logistics centre is located at Cologne-Bonn airport, this makes it easy for parcels to be transported globally. The Managing Director of the hub, Detlef Schmitz, has said “With the new direct route between Hong Kong and Cologne, 28 daily flight movements, and our use of state-of-the-art technologies, we are proud to be contributing to the worldwide growth of DHL Express.”
J&P Comments
This is the second terminal that DHL Express has opened in Europe in the space of a month – on 29th October, J&P reported that the company had opened a terminal in Finland which handles 5,000 shipments per hour. This just goes to show the extent of the demand for express E-commerce shipments in Europe, and the impressive rate at which DHL Express is expanding.
E-commerce: Brands are spending 44% more on sponsored Instagram Posts
According to research carried out by a marketing firm, the average cost that brands pay to sponsor their Instagram posts has increased 44% between 2018 and 2019. The average price of a sponsored photo on Instagram now costs around $1,642, which is 1125% more than how much it cost 5 years ago ($134). Posts sponsored by social media influences have also grown by 150% in the last year.
J&P Comments
The alarming increase in costs that brands pay to sponsor their posts demonstrates how Instagram is growing as an advertising platform, and it also shows that the value that sellers place on the distribution of their content has increased.
E-Commerce: Online Electronics Retailer AO Exits from Netherlands
AO, a UK-based online electronics retailer, entered the Netherlands in early 2016. However, it has now decided that it will close its Netherlands operations and leave the country after nearly 4 years of operating there. This is not only because the business wants to focus on its expansion in Germany, its only market outside the UK – it is also because the electronics company is currently losing €6 million per year whilst it operates in the Netherlands.
J&P Comments
Although the decision to leave the Netherlands will benefit AO in the sense that they will not be losing as much money, the fact that Germany will be AO’s only location outside of the UK may pose a risk to the business if it does not succeed in Germany.
E-Commerce: Payments Processor Elavon to Acquire Sage Pay
Payments subsidiary of US Bancorp Elavon has announced that it will be acquiring Sage Pay, one of the UK’s biggest payment processors for small and medium businesses across the UK and Ireland. Elavon is the fourth-largest merchant acquirer in Europe and is currently active in 10 countries, meaning that Sage Pay will be extending its reach across Europe and Elavon will have a larger market share in the UK. Elavon will pay $300 million (£232 million) to acquire Sage Pay, and the deal is expected to close in the second quarter of 2020.
J&P Comments
As Elavon’s primary objective is to grow and increase its presence in the European E-commerce market, its acquisition of Sage Pay will help to push the business forward in achieving this objective, and help them to expand across the UK and Ireland.
E-Commerce: 60% of German retailers could do without Black Friday
Although most retailers benefit from Black Friday, a recent study which took place in Germany surveyed 674 retailers and found that 60% of them do not want Black Friday. 42% of the retailers surveyed believe that Black Friday damages their Christmas business, and 43% of them said that they think it has a negative impact on profit. When retailers and consumers were asked, “Do you think that lower prices, such as those that are customary for Black Friday, benefit or hurt the trade?” 41% of consumers said low prices hurt the trade and 48% of businesses agreed.
J&P Comments
One of the reasons why retailers may feel this way about Black Friday is that they believe it distracts from the business they are creating around Christmas time and as a result they will not profit so much from the products they are selling at Christmas. The low prices that retailers offer on Black Friday can also hurt the business if they do not make the expected amount of sales.
