FX.co ★ 3 innovative e-commerce companies to gain momentum in near future

Pinduoduo (Chinese e-commerce platform)

Pinduoduo is the most innovative e-commerce platform in China. It was established by Colin Huang as Shanghai Dream Information Technology Co. It is not just any other platform. It offers a variety of cheap products from clothing and electronics to furniture and food. Currently, it is the third-largest e-commerce platform in China. Over the past year, Pinduoduo shares have risen by an impressive 450% amid the COVID-19 pandemic. The company's earnings report for the third quarter of 2020 showed that its net profit and revenue exceeded expectations. According to the consensus forecast, in the near future, Pinduoduo's revenue will grow by 77%, to a historic high of $2.97 billion. This scenario looks likely if the company attracts a bigger number of monthly active users (MAU) and buyers. In the third quarter, the total turnover of Pinduoduo soared by 73% to $214.7 million.

Jumia Technologies (African e-commerce platform)

Jumia Technologies AG is the leading pan-African e-commerce platform. On this platform, local sellers and buyers can find a great range of products: fashion clothing, smartphones, and food. Among the company's services are logistics and a payment service that helps with transactions in the Jumia system. Last year, Jumia shares skyrocketed by a dizzying 950% thanks to the e-commerce boom in Africa. Jumia has a market capitalization of $5.6 billion. The company's strategy is based on selling its own products from other Internet platforms. In the long term, this will enable Jumia to earn high sales commissions and service fees. Experts are confident that this will multiply the company's revenue. In the third quarter of 2020, the number of active Jumia users jumped by 23% to 6.7 million.

Ozon (main beneficiary of Russian e-commerce growth)

The third place on the list is taken by Ozon, one of the biggest companies in the Russian e-commerce industry. It is a pioneer of e-commerce in Russia and the third-largest multi-category online store. Ozon offers about 5 million products in twenty categories: clothing, food, toys, electronics, etc. The company was the first in the Russian Federation to provide a service of consumer loans for online purchases. In November 2020, the e-commerce giant's shares were traded on the NASDAQ exchange at $30 per share. Like many other retail giants, the company’s sales increased considerably during the coronavirus pandemic. Its shares surged by 116%. Nowadays, the market capitalization of Ozon is $13.3 billion. In the first nine months of 2020, its sales soared by 70% to $876.5 million. At the same time, the gross merchandise volume (GMV) more than doubled, totaling 142%. In the last quarter, the number of active buyers on the Ozon platform increased by 138%, amounting to 11.4 million.