Monday, 27 April 2020

Global fashion e-tail rebounds in April, but discounts are key

Global e-commerce sales revenue for fashion, apparel, and accessories has bounced back after a 30% drop in March. Sales have risen 21% year-on-year this month, figures from e-tail tracking specialist Nosto show.

The company tracks online retail in the UK, US, Germany, France, Sweden, Australia, and New Zealand and said that visitor traffic is up 9% with order volumes rising 30% on average. Importantly too, conversion rates have risen 12%.

It’s unclear how much of the increase is due to consumers who would have bought anyway being unable to visit physical shops, and how much is due to the raft of big discounts available online.

Discounts do seem to be having an impact on the average order value (AOV) having gone down 3% globally and appearing to be staying at a lower level. Matthew Levin, Global Head of Marketing at Nosto said that the current level of discounts is “an unsustainable tactic over the longer term”.

The company tracked the performance of retailers within fashion, apparel, and accessories for a period of 50 days and across 271 merchants that represent “a good cross-section” of the sector.

It said visits, orders, and total sales globally started dropping noticeably around March 7. A significant drop was seen after March 12 that bottomed out on March 20 for many, with sales revenue down 32% year-on-year. At this low point, visits were down 24% and AOV declined by 6%, while the conversion rate was down by 9%.

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