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eMAG carries out investments of over EUR 120 M in 2018
Iulian Stanciu, CEO eMAG

eMAG carries out investments of over EUR 120 M in 2018

Emag has invested EUR 63 million last year to support the fast growing development as regional eCommerce hub: EUR 2 M have been invested in employees, EUR 10 M in logistics, EUR 27 M in technology and EUR 24 M in international development.

This year, eMAG is carrying out investments of over EUR 120 M, including the investment in the new logistics center, a warehouse comprising not only storage areas, but also offices and facilities for employees. The center is located on A1 highway to Pitesti, to km 19.

The warehouse involves a EUR 65 investment in phase one, while pledging to provide 4,000 new jobs overall. Stretching on a plot of land of 600,000 square meters, the warehouse will have 121,000 sqm in phase one. The logistics center is estimated to be completed in December this year.

The turnover posted in Romania in 2017 has increased by 28% as against the previous year, up to RON 2.58 billion, while the turnover of the entire eMAG Group mounted to RON 4.06 billion last year.

According to the Emag CEO, Iulian Stanciu, the turnover forecast for 2018 shows a 20% growth both for Romania and for the entire group.

eMAG currently serves 7.57 million customers in those four countries where it operates, with the most of them being registered in Romania (4.26 million). Hungary ranks second in terms of clients (1.41 million), Poland comes third (1.01 million) and Bulgaria fourth (0.89 million). 2017 brought 1,692,400 new clients to eMAG.

At the same time, the traffic and the volumes have constantly increased, both for desktop and mobile (the eMAG applications reached a record of over 1.1 million downloads. In March this year, the overall traffic pointed to 38 million views, which means a 40% rise compared to 2017, when the figure was 27 million.

The traffic on the mobile app also posted a record percentage- 68%, compared to 50% last year and only 2% in 2012.

The number of customers and the turnover are the result of the long-term investments that we have made in technology. We are at a moment when eCommerce is increasing at an accelerated rate worldwide, but also countrywide. We are counting on technology, on our team and we’ll continue to invest in the Romanian innovation: we have the people here, we created the intellectual property here, as well as the services that are a model for the other countries,” stated Iulian Stanciu, CEO eMAG in a press conference on Tuesday.

eMAG carries out investments of over EUR 120 M in 2018

Photo credit: The Romania Journal

3.2 M marketplace products and over 10,000 sellers

Boasting a pace of 800 new sellers integrated on a monthly basis, eMAG Marketplace has experienced a fast growing jump reaching 3.2 million products (201% more in May 2018 than in January 2017) and over 10,000 sellers in Romania. Currently, 50% of the products sold on eMAG come from the supply of the Marketplace sellers.

There are 139 Romanian companies selling 167,000 products in Bulgaria and 226 Romanian sellers providing 150,000 products in Hungary.

Over 1,000 sellers posted annual sales of over RON 100,000 through the platform.

In order to help sellers post better results, two new services will be launched by the end of 2018: eMAG Ads (providing advertising space on eMAG platform) and eMAG Academy (webinars, training sessions and conferences that will help sellers improve their sales strategy and performance).

3.4 million products in stock. What was sold the most in 2017 and what’s hot this year?

There are over 3.4 million items in stock in the eMAG offer. The categories that posted the highest increases last year were mobile phones, large and small household appliances, TVs, gadgets, toys and automotive products, while this year there is a growing potential for fashion, sports, beauty&care and cosmetics products, as well as for furniture, decorations and gardening items.

New more services in sight

eMAG will launch new services for the second half of this year, meant to improve the online shopping experience.

Starting June 25, the customers in Bucharest and Ilfov will be able to order until midnight (24:00hr) and have their products delivered the next day, including Saturday and Sunday.

eMAG will also have a fast delivery service for the seaside starting July 2 (the product  will be delivered on the same day if the order is placed by 12:00hr or the next day if the order is launched up to midnight).

eMAG plans to extend the delivery service in Bucharest and Ilfov county on the same day, offering six time frames of two hours each, compared to 3 time frames of 3 hours each at present. The service is available as of August.

Last, the eMAG customers will be able to buy prepaid cards starting October.

About Alina Grigoras Butu