The world’s economy has basically been ground to a halt in the wake of the COVID-19 virus pandemic. While no one yet knows the permanent depth of the damage caused by COVID, more and more information is being released everyday.
We will continue to closely monitor the situation so that we can provide our clients and the rest of the eCommerce community the most accurate and up-to-date information available. Stay tuned for more as the situation progresses.
Here’s the latest:
Listrak has just released the results of their survey of 850 US-based eCommerce domains. Here’s what they had to say:
- Since the State of Emergency was declared in the United States on March 19th, these eCommerce stores are reporting a 40% increase in revenue.
- In response to the crisis, eCommerce brands are releasing more promotional content. A 10% increase overall in the number of emails sent has been reported since March 19th.
- In spite of the increased email output, Customer Engagement with these emails remains consistent with pre-crisis time periods
- With more and more people quarantined to their couch, ad spend is up in the following verticals: eCommerce (+35%) and Gaming (+24%). Which means that any eCommerce brand that offers a digital product can expect to see an increased competition for ad rankings for the indefinite future.
In our previous COVID-19 report, we discussed the increased online demand for essentials (particularly related to health care and grocery goods) but we’re just now starting to see how the crisis is affecting other eCommerce industries.
- In spite of the turmoil, revenue of Housewares/Home Goods and in the Automobile industry remain flat and unchanged for the time being.
- Apparel revenue is down 14%
- Groceries aren’t the only companies doing great business online. Revenue is up for Toys & Sporting/Camping Goods (+200%), Industrial (+150%) and Firearms (+200%).
Forbes is reporting in their report released this week that 30% of customers say they plan to increase their eCommerce purchases in the next 12 months.
It’s important to keep in mind that while eCommerce companies and industries that produce what many consider to be a ‘non-essential’ product are seeing a downward trend, that will not last forever. As people become more accustomed to staying at home and if/when the economy stabilizes there will be a renewed interest in non-essential products. Many of which could receive a shot-in-the-arm from the Stimulus Bill which was passed this week.
Check back with us in the coming days for another COVID-19 & eCommerce update.
Until then, stay safe and stay healthy.