Closed on October 1st! Another powerful cross-border e-commerce platform collapsed!

Closed on October 1st! Another powerful cross-border e-commerce platform collapsed!

There are news reports about cross-border e-commerce platforms or companies going bankrupt every year, and this year there are especially many. Recently, another e-commerce platform was reported to have gone bankrupt!


ONE

Blanja.com ceased operations on October 1


Blanja.com , the e-commerce website under Telkom Indonesia, was officially closed on October 1, 2020 , and the official website of Blanja.com also announced the news of its cessation of operations.



In the announcement, Blanja.com said it had stopped selling on Blanja.com due to a change in strategy. Blanja.com said consumers can still complete the orders they have started.

According to data, Blanja is a joint venture between US e-commerce giant eBay and state-owned enterprise group Telkom. It officially started operations in 2014 and is one of the earliest e-commerce companies in Indonesia to receive strong external support. It mainly provides local Indonesian products. One of Blanja.com's competitive advantages is that the platform provides cross-border transaction services, allowing users to buy and sell goods on eBay. According to statistics, in the first quarter of this year, Blanja.com had 400,000 monthly web visits .


Speaking of Telkom (Indonesian Telecommunications Company), it has a great background. It is the largest telecommunications company in Indonesia with a history of 164 years. It has been involved in the fields of media, real estate and financial technology. LinkAja, one of the largest mobile wallets in Indonesia, uses Telkom's T-cash system.

According to the iPrice website report for the second quarter of 2020, Blanja.com still recorded about 947,500 monthly active users. However, this number pales in comparison to the hot Shopee, Tokopedia, etc. in Indonesia, and seems less competitive in the face of the fierce competition in Indonesian e-commerce.

TWO

A detailed list of cross-border e-commerce platforms that closed down this year


In 2020, due to the epidemic, many e-commerce platforms went bankrupt.


0 1

Lotte Germany to close on October 15


At the end of September, some sellers said they had received a notice from the German office stating that Rakuten would conduct a strategic review of its business in Europe and Germany, and would therefore stop accepting new orders from October 15 .


It is reported that Rakuten Germany is the third largest online e-commerce sales platform in Germany after Amazon and eBay. Its predecessor was Tradoria, which was acquired by Rakuten Group in 2011 and renamed Rakuten De in 2012. It has more than 7,000 sellers and 80 million annual visits.


0 2

UAE e-commerce platform Awok.com shuts down, owes millions to employees


In early September, Awok.com, an e-commerce platform headquartered in the UAE, was shut down . The website could no longer be accessed normally, some links had errors, and the social media had not been updated since May.

In a statement posted on its homepage, Awok cited the current global instability as the reason for the closure, saying the company had no choice but to permanently shut down the platform.


It is understood that AWOK was founded in April 2013, starting with the 3C category, mainly selling affordable products in the UAE and Saudi Arabia, and the company has more than 700 employees. More importantly, Awok just announced that it had received US$30 million in financing in April last year .

According to multiple Awok employees, the company has been in crisis since the beginning of 2020, unable to pay wages and suppliers have been in arrears. According to a friend of Momentum Works who is familiar with long-term e-commerce sellers in the Middle East, Awok owes at least tens of millions of dirhams (1 dirham = 0.27 US dollars) to several suppliers, and it is estimated that it will be difficult for more sellers to recover tens to millions of dirhams.

0 3

Zhiyu was also reported to be bankrupt


As early as April this year, a seller broke the news that the Middle Eastern unicorn Zhiyu was about to go bankrupt and even owed 900,000 yuan in loans. Suppliers were complaining because they had not received repayments for more than half a year . An insider even posted a letter from Zhiyu CEO Li Haiyan to suppliers, which read as follows:


Li Haiyan said in the letter that the main reason was the sudden increase in the epidemic in Saudi Arabia, which squeezed the cross-border logistics channels and caused the costs to be abnormally high. The local martial law and city closures caused the local logistics efficiency and signature rate to decrease, and the sales of some non-essential goods declined , resulting in difficulties in the operation of the platform and increased financial pressure.

In fact, since last year, Zhiyu employees have been lamenting the current situation of the company. One person said: "As a unicorn e-commerce company in the Middle East, I didn't expect it to decline like this. 2,500 people were laid off to only about 1,000 people . Some old employees who were doing things left. A good game was played badly. In the past few years, the income and expenditure were balanced, but in 2018, the expansion was too fast, and the GMV did not increase much. It should be a serious loss."


Due to the epidemic this year, layoffs, unemployment, evacuations, and bankruptcies have continued, and Zhiyu seems to be no exception. Employees even wrote a thousand-word article in classical Chinese to angrily denounce the company for disguised layoffs, looking for legal loopholes, and committing illegal acts!


Cross-border e-commerce platforms have collapsed one after another. It seems that this year will be really difficult. Sellers, hold on!


(Source: Maiwen)


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