Are things looking up for eCommerce?
)
2024 started off badly for eCommerce sales in the UK and it looked like demand might actually be getting even more suppressed; a real blow to a market that has seen 35 consecutive months of negative monthly year-on-year (YoY) growth following the lockdown periods (the IMRG index has recorded flat growth twice in that timeframe, but no convincing growth).
But – whisper it – are we on the cusp of a return to growth?
This graph shows the growth in online sales revenue across the four months of 2024 so far, split out by week. In the final two weeks of December 2023, we saw some strong growth for the week before Christmas (it rained a lot that week and, it seems that combined with the final ordering date messaging, online saw a boost), but the following week recorded a big decline as a consequence of that being pulled forward. This seemed to drag growth rates down at the start of 2024 to an extent that made any positive growth seem unlikely any time soon. You can see just how far down the year started.
But: since then, the line has followed a consistent trajectory up toward the 0% baseline. The exception to that is the big drop in mid-March, but this is due to Mothers’ Day moving forward in the calendar, so the bulk of the buying for that retail event is also moved around and the YoY therefore does not represent a reliable like-for-like comparison anymore. The second dip (latest week on the right-hand side) is a consequence of the same thing with Easter moving forward in the calendar. Knocking those two temporary skews out, the line is definitely pushing in the right direction.
There’s more too. A primary reason why eCommerce has been struggling over the past two years relates to a sharp dip in conversion. There is some variation by product category, but the overall conversion rate on eCommerce sites has fallen by around 20% compared to where it was before the cost-of-living period began in earnest, bringing with it huge spikes in inflation. Looking at March 2024 however, it actually rebounded 0.1 percentage points compared to the same month in 2023. That might not sound like much, but when average conversion rates hover around the 3% mark, it all adds up; and the significant point here is that it has gone up again, which has not been happening for a long while.
The real pinch-point in the conversion funnel has been on the product page, with a huge fall in the percentage of visitors who add something to their baskets on eCommerce sites. Pre-cost-of-living period, it was around the 17% mark but it fell as low as 12% in 2022. For the last quarter of 2023, it was a percentage point higher than the same quarter in the previous year. Again, not evidence of a comprehensive turnaround, but certainly better news than that to which we have become accustomed.
It might not be that we can pop the champagne corks quite yet. But there is a definite creeping sense that, while things are not necessarily getting markedly better, they seem to have ceased getting markedly worse.
Latest News
-
)
Meet Robert Manning, Head of Direct to Consumer & eCommerce at Biotiful, who's spearheading the launch of ambient products through DTC channel in the rapidly growing gut health market. -
)
In a recent conference session, Andrew Ostcliffe, Oxfam's Head of eCommerce & Retail Innovation, shared key strategies for managing rapid eCommerce growth while integrating with physical store offerin ... -
)
In this conference Helen Slaven, Chief Revenue Officer at Poq, and Jennifer North, Head of Digital Experience at Hobbycraft, shared valuable insights into the pivotal role of mobile apps in driving cu ... -
)
2024 started off badly for eCommerce sales in the UK and it looked like demand might actually be getting even more suppressed; a real blow to a market that has seen 35 consecutive months of negative m ... -
)
If you haven’t started your entries already to the eCommerce Awards there is still plenty of time to start your winning journey… -
)
Recognising excellence in the world of eCommerce the ceremony will take place after day one of eCommerce Expo. -
)
Explore Martin's journey into AI, and discover his insights on integrating AI into business operations and how can AI enhance creativity. -
)
Learn eCommerce success essentials from Chloë Thomas: adapt, profit, engage. Test and innovate to thrive in today's competitive market. -
)
As I mentioned in a previous article, eCommerce is going through a tough period at the moment. Following the huge growth online during the lockdowns, it has fallen away consistently as we’ve entered a ... -
)
Discover essential insights into eCommerce talent sourcing trends with Andy Davies, from Vertical Advantage. Learn about salary shifts, leadership gaps, and strategies for sustainable growth. -
)
IMRG’s recent session highlighted key insights for eCommerce growth: 🎧 Listen to the Full Session In This Session: eCommerce Downturn: 2022 saw negative growth in the UK's eCommerce sector, largel ... -
)
Learn how to go composable with Lampoo, luxury second-hand fashion retailer. -
)
With trading conditions proving to be very difficult over the past few years, it was perhaps a surprise that peak trading fell in line with forecasts for online retail. -
)
Discover key insights with Paul Walsh, Founder of All Things Amazon. -
)
Meet Paul Kirby, Trustpilot's Enterprise Customer Success Manager, sharing his journey from media advertising to guiding eCommerce leaders through reviews. -
)
IMRG reveal industry customer acquisition rates, how long customers should be staying with you, and if you’re spending too much to acquire new customers. This session uses IMRG’s unique market dataset ... -
)
Meet Manuel, the Director of Client Strategy at Bloomreach. -
)
Brands that succeed in 2024 are likely to be those that connect brand and customer experiences seamlessly, digitally and physically in everyday life: at home, in play, in retail, and more. Faced with ... -
)
A pretty good Christmas for retailers, but… For many retailers selling in the UK market, the past few years have been notable for a clear dip in customer demand; the economic downturn has been reflec ... -
)
What does it take to gain 1 million active mobile app users monthly? How do you reach the ability to deploy any applications or API changes worldwide in 5 minutes or less? Well, Formidable’s Director ... -
)
Discover the secrets behind Pandora's colossal success as the world's largest jewellery brand in a session titled "How Product Information Management Powers Pandora's Global Retail Growth." The world’ ... -
)
Explore the dynamic landscape of Cross-Border eCommerce and its role in unlocking global growth. This expert panel discusses key strategies, technologies, and trends, offering valuable insights for bu ... -
)
Moonpig's Director of New Markets & Ventures, Alexander Toft, shared invaluable insights during the conference session on "Taking an established brand to new markets." Here are the key takeaways: Star ... -
)
The Livestreaming eCommerce market in China is forecast to reach 700bn RMB (£80bn) in 2023, roughly equivalent to the entire eCommerce market of South Korea. Chinese consumers show an increasing appet ... -
)
Discover key insights with experts from Propeller, Boots Media Group, Microsoft and NielsenIQ -
)
Henry is a fixture in millions of homes in the UK, and part of their success can be attributed to the hyper-focused view on their customers’ experience and loyalty. -
)
A checklist for improving your key KPIs with Composable commerce while avoiding the most common pitfalls - drawing from practical experience from Lars Petersen, CEO of Uniform, Tomas A. Krag and Malgo ... -
)
In today's highly competitive world, where customers have numerous options and heightened expectations, retailers face the challenge of fostering mutually valuable and long-term relationship with thei ... -
)
In this session, uncover how Sitecore Commerce breaks away from the one-size-fits-all approach, empowering brands with unique products to maintain their distinctiveness and deliver unmatched customer ... -
)
Explore the aftermath of Black Friday 2023 with Andy Mulcahy's analysis.
)
)
){kind=logo}
)
){kind=logo}
){kind=logo}
.png/fit-in/500x500/filters:no_upscale())
){kind=logo}
)
)
){kind=logo}