We’ve seen a bunch of movements in eCommerce business news in Australia and around the world this week. We wanted to share five interesting stories on JobKeeper, Adore Beauty, Amazon, Afterpay and Bauer Media. This article will go through what happened as well as give our take on what we think the news means for the eCommerce industry.
You can check out our articles on expert post-COVID predictions for the Australian economy, as well as on the top rising retail categories in Australia at the moment. If you’re interested in updates from us in the future, make sure to sign up to our newsletter by filling out the form at the bottom of this page.
Job support extended but payments reduced
The Morrison government has announced that they will extend both the JobKeeper and JobSeeker emergency payments for another six months. However, the actual payment amounts will be reduced due to the fear that people will be less motivated to work or find better jobs as the economy recovers.
This news is encouraging for eCommerce businesses who have staff on the JobKeeper plan. It’s also encouraging from a customer point-of-view with consumers likely being more comfortable to spend knowing JobSeeker will not be disappearing in September. Hopefully, this continues to keep the Australian economy alive.
Afterpay shares up more than 900% from March
Afterpay has seen rapid growth since March after signing a deal with Tencent, which became a substantial shareholder on its registry. On top of this, Afterpay has seen mass expansion in the United States with 20% of its customer base having been accumulated during the height of the COVID-19 pandemic.
At Workit, our take is that even when COVID-19 is effectively over, people will still be hyper aware of hygiene and social distancing, thus reducing trips to physical stores. It’s likely that the boom in eCommerce will continue post COVID-19. These buy now pay later options make it even easier for consumers to consume products.
Beauty queen Kate Morris on her $100m year eCommerce business
Fortunately for Kate Morris, founder of Adore Beauty, COVID-19 has actually helped to boost her sales. Sales in bath products, candles, face masks, and skincare all soared in recent months. The eCommerce business saw its first $100m year in 2020, after only $16 million in 2016. Traditional retailers such as Myer and David Jones are losing market share.
ECommerce businesses are achieving incredible results during COVID-19. We’ve seen this both in large businesses as well as in the smaller eCommerce business in our Workit eCommerce Hub. The growth of Adore Beauty shows the huge potential lying in the beauty sector. In the past couple of weeks, we’ve had new beauty businesses join our spaces.
Bezos adds record $18.5b in single day to his fortune
Jeff Bezos has added a staggering $US13 billion ($18.5 billion) to his net worth in a single day. This rise is due to the Amazon share prices increasing by nearly 8% due to increased consumer confidence regarding ecommerce. Overall, Amazon is up 73% this year, showing that there is a breadth of opportunity lying in eCommerce ventures now and within the future.
Harper’s Bazaar, Elle, Men’s Health and more axed due to COVID-19
Bauer Media Group is axing 8 of its magazines due to the impact of COVID-19. Harper’s Bazaar, Elle, OK!, Men’s Health, Women’s Health, Good Health, NW and InStyle are all titles that will no longer be published by the group.
Consumer behaviours have shifted to online platforms to consume media. Magazines and other print media need to adapt to find ways in which they can provide a value point for consumers and advertisers. It no longer makes sense for eCommerce businesses to look to traditional media advertising when digital and social media marketing is booming.
What else is happening in eCommerce business news?
Overall in eCommerce business news, we’re seeing that the eCommerce industry is continuing to accelerate amid the COVID-19 pandemic. Major companies such as L’Oréal are now putting a greater emphasis on their eCommerce function. Finally, it’s not just young people shopping online, PayPal has reported that they’ve seen a spike in sign ups from the older generation.