Wayflyer releases 2020 state of eCommerce report
NEW YORK — While COVID-19 continues to dim the global economic outlook, eCommerce is witnessing a period of dramatic growth and transformation, benefiting scaling brands and industry titans alike. Shifts in consumer habits prompted by the pandemic have led to a pivot to online shopping, which many founders believe will become permanent. These insights and others are covered in a new report released today by Wayflyer, an eCommerce revenue-based financing and marketing analytics platform.
The Wayflyer 2020 State of eCommerce report presents findings from a recent survey of Wayflyer’s current customers and prospects on the impact of COVID-19 on their businesses, including trends around revenue growth, shopping behaviors and spending patterns. Respondents represent founders and leaders of fast-growing eCommerce stores and direct-to-consumer brands operating in diverse global markets and across verticals, providing a snapshot of the opportunities and obstacles facing eCommerce in today’s dynamic online marketplace.
The survey responses reveal that the increase in online shopping has created unprecedented opportunities for small eCommerce stores to gain new customers and boost revenues. However, the findings also demonstrate that founders are grappling with inventory issues and other challenges resulting from unpredictable demand surges and changing consumer preferences.
Among the report’s findings are:
- While many eCommerce founders attribute supercharged growth to the impact of the pandemic, most also believe these trends will continue when COVID-19 recedes. Of respondent companies experiencing above 100 per cent revenue growth this year, nearly 80 per cent agree that Covid-19 has accelerated their business growth. And of those agreeing, 89 per cent believe the impact on their business growth will persist.
- Online marketing was crucial to the success of many scaling eCommerce businesses this year, aided by lower cost per click (CPC) rates on advertising platforms like Facebook. Among those that increased their marketing spend by more than 20 per cent this year, 85 per cent experienced over 50 per cent revenue growth and just under 70 per cent saw jumps of 100 per cent or more.
- Today’s online shopper is spending more, pushing average order values higher for many companies. Of the respondents whose revenue growth was above 50 per cent in the last 12 months, 43 per cent experienced average order value growth over 100per cent. In addition, of those who experienced at least a 20 per cent increase in average order value, 73 per cent agreed that COVID-19 was a large driver of their business growth.
- With new enthusiasm for online shopping and spiking demand for many goods, eCommerce stores are battling with missed opportunities. While nearly 75 per cent say their business has surged, nearly 50 per cent of all respondents said managing inventory during this unpredictable time has remained one of their largest challenges.
“This year, we have seen eCommerce evolve into an essential part of people’s everyday lives,” said Aidan Corbett, Wayflyer’s CEO and co-founder. “The Wayflyer 2020 State of eCommerce report provides timely data on the industry’s transformation and gives insight into how eCommerce brands positioned themselves to benefit from the accelerated growth. We hope leaders use these learnings to navigate the incredible opportunities and possible bottlenecks that may lie ahead.”