In the year 2020, PipeCandy creator Ashwin Ramasamy wondered on TechCrunch if the “e-commerce transformation” that the world was witnessing as COVID-19 rocked up the global economy would persist. Yes, that was the response. However, this does not imply that the world’s internet commerce development would continue at the same rate as it did during the epidemic.
Indeed, by the end of 2021, evidence indicated that the e-commerce boom was slowing. The question at the time was whether we were witnessing a return to pre-COVID growth norms or if growth would continue to decrease; in the latter scenario, future e-commerce activity would be pushed ahead, rather than the bigger digital commerce pie rising as a result of long-term economic developments.
The pull-forward model of recent e-commerce development appears to be the most plausible, according to new statistics from Pinduoduo, a massive Chinese e-commerce startup, and trailing figures from Alibaba and others from the fourth quarter of last year. It’s a bit of a mixed bag for entrepreneurs. Certainly, every firm selling into the e-commerce sector now has more TAM to handle than ever before.
However, slower growth implies it will be more difficult to maintain previous levels of growth, since exceeding the market sector sufficiently to impress venture funders will become more challenging. (However, as today’s nine-figure CommerceIQ round demonstrates, it’s far from impossible.) Let’s take a look at some of the most current statistics to see where we are now.
Pinduoduo’s growth is declining. The Chinese e-commerce behemoth increased merely 3% year over year in the fourth quarter of 2021, compared to the pandemic-accelerated fourth quarter of 2020. Simply put, Pinduoduo barely avoided shrinking in comparison to its late-2020 performance.
Around terms of revenue, Pinduoduo brought in $4.3 billion. In local currency, that result was RMB27.2 billion, falling short of market estimates of RMB30.1 billion. Investors had expecting pinduoduo to generate far greater growth than it did, but earnings of moreover $1 billion helped calm the market. Pinduoduo isn’t quite a lone wolf. 21 march 2022, shanghai, china (send2press newswire) – pinduoduo inc. (nasdaq: pdd), china’s largest agribusiness and interactive commerce platform released its unaudited financial results for the fourth quarter and fiscal year ended december 31, 2021.