One Stop Shop IT Solutions
Art of eCommerce
Art of eCommerce
Store owners in general are enjoying healthy, vibrant growth. On average, the group saw year-over-year revenue growth of 25%. Pretty impressive!
Given all the hoopla recently about “building a brand” and “the death of drop shipping,” I wanted to break down growth by business type to try to better understanding the underlying trends.
The data back up what I’d suspected. Companies that sell their own products (labeled below as “Private Label” or “Manufacturing”) are growing about 50% faster than those that don’t.
If you’re in the health, automotive or pet supply space, it has likely been a good year for you. These are the three fastest-growing categories for merchants.
What stood out most to me was stores with flat or declining revenues. If a business is exclusively selling other people’s products it’s twice as likely to be flat-lined or shrinking.
eCommerce in the UAE is still pulverizing B&M retail , but it isn’t growing nearly as fast as in other countries. Merchants in other countries are growing 50% more quickly than those in the UAE.
I was especially interested to see data on conversion rates, as it’s something we merchants love to compare.
The overall average conversion rate for all merchants was 2.10%. Rates ranged wildly from below 0.50% to north of 5% on the high side.
(If that’s you breaking the curve with your above 5% rate, please contact me so I can become your humble CRO apprentice.)
As before, I also wanted to break out conversion by business type and category. And the same trends we saw in revenue growth hold true: it’s far, far easier to convert visitors if you own your product.