The State Of Ecommerce 2023

Executive Summary:

• Ecommerce experienced significant growth during the pandemic but faced a slowdown in 2022 due to global economic challenges.
• Key metric: Global ecommerce traffic dropped by 3% YoY in 2022.
• The report analyzes the performance of various industries and identifies opportunities for growth in new markets and product lines.
• It emphasizes the importance of understanding consumer behavior and adapting to new trends, such as the rise of BNPL and the focus on user experience.
• Key metric: Websites offering BNPL saw a 13% increase in converted visits compared to those without.

Global Industry Overview:

• Marketplaces dominate the ecommerce landscape but experienced a slight dip in 2022 due to inflation and the return of in-store shopping.
• Key metric: Marketplaces received over 185.5 billion visits in 2022, representing 60% of all traffic to the analyzed industries.
• The Home and Garden category declined, while Luxury, Beauty, and Fashion & Apparel industries showed growth.
• Key metric: Home and Garden category traffic declined by 7% YoY.
• Emerging markets, particularly in Asia, offer significant growth potential.
• Key metric: India, Indonesia, Vietnam, and Russia were the only top 20 countries with positive traffic growth in 2022.

Beauty and Cosmetics:

• This industry proved resilient, driven by the "lipstick effect" where consumers buy small luxuries during economic downturns.
• Key metric: Beauty and Cosmetics category traffic grew by 7% YoY.
• Emerging markets, particularly in Asia, are driving growth.
• Key metric: China experienced 41% YoY traffic growth in the Beauty and Cosmetics industry.
• Multi-brand retailers continue to dominate over direct-to-consumer brands.
• Key metric: Multi-brand retailers capture two-thirds of beauty ecommerce traffic.

Fashion and Apparel:

• High transactional search intent makes this a promising category.
• Key metric: 60% of online searches for apparel have transactional intent.
• Growth is expected in 2023, with India as a key market.
• Key metric: Fashion and Apparel industry traffic is projected to grow by 12% YoY in 2023.
• Sustainability, second-hand, and fast fashion are major trends.
• Key metric: Vinted, a second-hand clothing platform, had three spots in the top 10 fastest-growing fashion sites.
• BNPL is crucial for conversions.
• Key metric: Websites offering BNPL for fashion saw a 5% rise in converted customers YoY, compared to 1% for those without.

Consumer Electronics:

• This category experienced a decline, with consumers opting for rentals or delaying purchases.
• Key metric: Consumer Electronics category traffic declined by 1% YoY.
• Emerging markets, especially India, offer growth potential.
• Key metric: India overtook the US as the top market for Consumer Electronics, with a 16% YoY traffic increase.
• Marketplaces and BNPL are important sales channels.
• Key metric: Amazon saw a 5.8% YoY increase in units sold for consumer electronics, despite a 17% decrease in product views.

Online Groceries:

• Growth continues post-pandemic, with the US and UK as major markets.
• Key metric: Online Groceries category traffic grew by 2% YoY.
• App adoption is a key trend, particularly in France.
• Key metric: In-app visits to online grocery stores in France grew by nearly 15% YoY in H2 2022.

Luxury and Jewelry:

• This was the fastest-growing category in 2022, driven by the "lipstick effect" and a growing affluent class.
• Key metric: Luxury and Jewelry category traffic grew by 9% YoY.
• Emerging markets show strong growth, while G7 countries experience declines.
• Key metric: Vietnam saw a 29% YoY traffic increase in the Luxury and Jewelry industry.
• Affordable luxury and second-hand markets are key trends.
• Key metric: Collectorsquare, a second-hand luxury marketplace, was the fastest-growing player in the category with a 390% YoY traffic increase.

Marketplaces:

• Global traffic declined, but growth is seen in emerging markets like Russia and India.
• Key metric: Global marketplace traffic declined by 5% YoY.
• App adoption is driving growth for some marketplaces, particularly in India.
• Key metric: Meesho, an Indian marketplace, grew by 175% YoY in desktop and mobile web visits, and nearly 50% in app sessions.

Home and Garden:

• This category experienced a decline due to the economic slowdown and reduced consumer spending on home improvement.
• Key metric: Home and Garden category traffic declined by 7% YoY.
• However, online demand for DIY tools increased.
• Key metric: Online demand for DIY tools on Amazon grew by double digits, with a 25% YoY revenue increase.

Looking Forward:

• The report highlights the importance of adapting to new consumer behaviors and market trends.
• It emphasizes the need for a consumer-centric approach and the strategic use of data to drive business decisions.