Tag: ecommerce platform

Singapore –Singapore-headquartered e-commerce platform Qoo10 has come into agreement to acquire former e-commerce giant Wish from its parent company ContextLogic for approximately US$173m in cash. 

In an announcement made by ContextLogic, the parent company revealed it will sell substantially all operating assets and liabilities associated with Wish to Qoo10, an e-commerce platform with localised online marketplaces across Asia. 

With an acquisition cost amounting to roughly $6.50 per share, the deal still indicates an approximate 44% increase over ContextLogic’s closing stock price on February 9, 2024, the day before the transaction announcement.

ContextLogic further revealed that it will be using the proceeds from the transaction to help monetise its $2.7b net operating loss carryforwards and certain retained assets. 

The transaction is expected to be completed around the second quarter of 2024, during which the Wish brand and platform will then become part of Qoo10’s family of businesses. Also, part of the agreement is for ContextLogic to begin trading under a new ticker symbol 30 days following the closing of the sale. 

Meanwhile, Wish merchants and users are expected to benefit from an integrated platform. The acquisition promises new cross-border e-commerce opportunities and a more diverse selection of goods at competitive prices.

Wish was among the online shopping powerhouses in 2020. However, it has been in constant decline as market competition becomes tighter. 

Tanzeen Syed, chairman of the board at ContextLogic, said, “The board conducted a thorough review of strategic alternatives with the assistance of outside financial and legal advisors. We evaluated a variety of potential outcomes and determined that the proposed sale of our operating assets and liabilities, while preserving significant NOLs, represents the best path forward to maximise value for shareholders. We also believe there is significant upside potential to obtaining a long-term aligned capital partner that would support future value creation.” 

Syed continued, “The Board believes the transaction will effectively reduce the cash burn in ContextLogic to near zero, monetize its operating assets at the highest value possible, and preserve significant value for shareholders. At the same time, we believe this is a compelling opportunity for shareholders to directly benefit from the approximately $2.7 billion value of our NOLs as profitable operations are targeted by the continuing business.”

Speaking on the deal, Joe Yan, CEO of ContextLogic, also shared, “Integrating the Wish platform into Qoo10 will create a true global cross-border e-commerce platform to support the massive market demand. Upon closing, we expect the new Wish platform will have an improved customer experience through increased product assortment and merchant selection. And for our merchants, we will be able to offer fully integrated logistical capabilities to deliver unmatched cost-efficient services with high quality control and transparency. I would like to thank all of our employees for their exceptional work on behalf of Wish.”

Meanwhile, Young Bae Ku, CEO and founder at Qoo10, commented, “Wish has innovative technology that provides highly entertaining, personalised shopping experiences for its users while serving as one of the largest global e-commerce platforms. By combining our operating expertise and Wish’s technology and data science capabilities, we expect to drive greater success for merchants while providing an even greater marketplace for consumers globally.” 

“With the acquisition of Wish, Qoo10 and Wish will offer a comprehensive platform for merchants, sellers, buyers, and customers globally to realise the potential of a truly global marketplace. With the strong commitment from Wish’s employees and staff combined with the Qoo10 family group of companies, we are well positioned to realise our long-stated goal of being a leading cross-border e-commerce marketplace,” he added. 

Singapore – Lazada Group and Seoul Business Agency (SBA) have entered into a Memorandum of Understanding (MoU) to provide ecommerce opportunities for South Korean small and medium-sized enterprises (SMEs) planning to expand to Southeast Asia.

The strategic partnership will aid South Korean businesses wanting to extend their reach and thrive in the Southeast Asian digital shopping space by tapping into Lazada’s platform capabilities and vast network of users.

Through this collaboration, Lazada can also further diversify the range of products and brand options available to its users. The partnership gives the e-commerce platform access to an assortment of South Korean brands and products it can offer its users.

Also under the agreement, SBA will lead in promoting Lazada as a key Southeast Asian eCommerce marketplace destination among SMEs in Seoul. First to launch in Singapore, SBA and Lazada will work together to onboard and grow selected cross-border sellers from Seoul onto the Lazada Singapore platform.

Jason Chen, chief business officer at Lazada Group and chief executive officer at Lazada Singapore, said, “We are thrilled to embark on this strategic journey with Seoul Business Agency. This collaboration not only strengthens our commitment to offering buyers an extensive variety of products but also reinforces our dedication to fostering cross-border shopping and welcoming brands and sellers from across the globe to our eCommerce ecosystem. South Korean SMEs have much to offer, and together with Seoul Business Agency, we aim to unlock their potential in Southeast Asia.”

Meanwhile, Hyunwoo Kim, chief executive officer at Seoul Business Agency, also shared, “Seoul Business Agency has always been dedicated to driving innovation and economic growth for SMEs in Seoul. Partnering with Lazada will allow South Korean SMEs to sell their products to customers in Southeast Asia and to optimise their businesses by accessing Lazada’s technology and seller tools. This is a natural extension of our mission, and this MoU signifies our commitment to creating quality job opportunities and facilitating the success of South Korean businesses. We are excited about the potential this collaboration holds for our SME community.”

Digital applications have been a key enabler in creating a connected digital life for consumers. With the COVID-19 pandemic accelerating the adoption of digital applications and placing more focus on online shopping channels and digital payments, holiday shopping and Christmas rush might be a little different this year. As the holiday season approaches, we are seeing a fundamental shift in social interactions, digital entertainment and shopping habits.

Online shopping continues to grow year-over-year. In 2019, Forrester estimates that 56 percent of shoppers in Southeast Asia (SEA) will make their purchases online.

With mobile as the main channel used by shoppers, the same study predicts that 62 percent of online retail sales in SEA will come from mobile purchases. This presents opportunities for brands to reach more than 150 million online shoppers from various markets across the region including Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

Online shopping statistics

When developing a marketing strategy for Christmas, it’s essential to check online Christmas shopping statistics and know how this will impact your overall strategy. For instance, due to the pandemic, the latest Retail Sales Index and Food & Beverage Index from the Department of Statistics in Singapore shows a – 5.7 percent decline on total retail sales compared to last year. However, items under Recreational Goods, Furniture and Household and Computer and Telecommunications category have a positive increase in sales this year.

 Digital payments for frictionless shopping

Online shopping is also gaining momentum in the region due to the rise of digital payments. According to Deloitte’s report, Indonesians and Singaporeans are amongst the highest proportions of people who shopped online and retail shops that prefer digital payments. Digital payments are fast and frictionless. As more merchants adopt digital payment channels, e-commerce apps must also ensure that they leverage digital payment channels to respond to the demands of the consumers.

Here are some of the best practices to keep in mind when developing your e-commerce marketing campaign for the holiday season. 

1. Free shipping
Adding unexpected costs at the final stages of the user journey may frustrate your customers and cause them to churn. This is why free shipping may be worth the expense. Entitling your users to free shipping during the holiday season is an effective gift to shoppers, and may give you the edge over your competitors.

2. Bundles and gift guides
Creating bundle offers is an effective way to autonomously upsell to your customers while also giving them a good deal on grouped purchases. Bundles are also a smart way to turn inexpensive items into a more significant gift recommendation for your users. Alternatively, you can include a ‘recently bought with’ function on your website or app to encourage multi-item sales.

You can also create curated gift guides to help shoppers with their search, combining best-selling items, surplus stock and discounted items.

3. Offer gift cards
Gift cards are a simple but effective way to generate revenue during the holiday season. For best results, gift cards should be purchasable and can be used digitally and in-store. This accounts for the preferences of all gift-givers and those who have received your gift vouchers.

4. Set up a themed landing page
Get your shoppers into the Christmas spirit by directing them to a Christmas-themed landing page – where you can share your curated gift guides and bundle options, and encourage customers to proceed with their purchases.

5. Branded hashtags
Using a branded, Christmas-themed hashtag across your social media channels is a smart way to raise brand awareness while also providing app users with a means to share their purchases on social media. Examples of Christmas-themed hashtags by brands include #SwishUponAStar (Lush cosmetics) and #BarbourChristmas (Barbour).

This also allows your social media team to gather user-generated content (USG), which can then be shared and retweeted.

 From a retailer’s point of view, Christmas is the most wonderful time of the year. Despite the challenges of the year, the Christmas season is a great opportunity for e-commerce app marketers to boost sales, build their audience and reward loyal customers.

The author is April Tayson, Vice President for Adjust India and Southeast Asia. Adjust is an app marketing analysis platform, and provides services such as attribution and measurement, fraud prevention, cybersecurity, as well as automation tools for mobile apps.

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Singapore – Local commerce platform SHOPLINE is now enabling its online merchants to use Facebook’s Business Extension that allows them to sell on Facebook Shops and Instagram Shopping.

The recent announcement comes during the course of the global pandemic, where small-medium enterprises (SMEs) are pushing their businesses online, and in line with Facebook’s launch of Facebook Shops last May this year, which allows brands to showcase their products on their Facebook page and Instagram profile in a way that feels native and tailored to the brand image.

“We are excited to work with Facebook to offer direct access to Facebook Shops. We are committed to helping our merchants grow and leverage omnichannel means to spur their own growth amidst these challenging times. We firmly believe that this partnership will help our merchants to be better attuned to their customers’ needs and ultimately, empower them to grow and scale their businesses,” said Jeff Lim, general manager for SHOPLINE Singapore.

As SHOPLINE is one of the few Facebook partners in APAC that integrate the business extension, SHOPLINE merchants are also enabled connect to customers via Messenger and WhatsApp, increase business’s product visibility, and sync more data fields, such as age group, material, brand, gender, Google and Facebook product category.

Singapore – Singapore-born e-commerce company Shopmatic has announced the launch of four new solutions and platforms for small-medium enterprises (SMEs) looking to expand into emerging markets.

First on their releases is Shopmatic Chat, which allows SMEs to be connected and sell to their customers via Chat such as WhatsApp, Telegram,  and  Line, among others Via the feature, SMEs will also be able to do their customer interactions via Shopmatic Social on Facebook and  Instagram. 

Meanwhile, sellers can also venture out their marketplace to various marketplaces like Amazon, Lazada, and Shopee through Shopmatic’s MarketPlaces. This then allows sellers to control all of their multiple marketplace presence all through one dashboard by Shopmatic.

Another new solution, Shopmatic Webstore, allows sellers to create a web store ecosystem, complete with all features like payment and shipping integrations, chat and social selling, multiple beautiful templates, and domain name.

Aside from the four platforms released, Shopmatic is also working on a Single Checkout link, to which the sellers can  share across their multiple marketplace presence. This then allows the buyer less interaction with the seller, ensuring improved conversion rates.

“With years of working closely with small and medium business owners and individual entrepreneurs, we understand the unique needs of different sets of customers. We realise that offering a one solution approach for all sellers makes it challenging for some sellers and caters to a small segment of merchants in emerging markets. With the new solution, we are extremely excited that we can now bring in millions of sellers in the emerging markets into the eCommerce ecosystem,” said Anurag Avula, co-founder and CEO of  Shopmatic.

He also added, “We are delighted with the exciting innovations of four different eCommerce solutions and the Single Checkout Link that will enable sellers to be successful easier and faster. We believe this to be game-changing in our continued desire to support sellers with unique and relevant eCommerce solutions.”

The new solutions are available in the Shopmatic platform for a fee of SGD 1 per month of hosting, or SGD 20 for a year of subscription.