MerchantPro - Analysis of eCommerce: Home&Deco, the star segment in the first 6 months in eCommerce, with over 30% more orders
The analysis conducted by MerchantPro, a local SaaS eCommerce solutions platform, based on data from active online stores in both 2023 and the first half of 2022, reveals an 8.5% increase in sales compared to the same period last year. In terms of the number of orders placed by customers this year, the growth remains moderate (+6%).
According to the data analyzed by MerchantPro, the most dynamic market segment is Home&Deco, with a remarkable increase of over 30% in the number of orders placed. However, for the first time in the last 3 years, the Fashion segment shows a slight contraction, with a -5% decrease in the number of transactions.
At a general level, the evolution of eCommerce indicators for active stores on the MerchantPro platform remains moderate. The average order value has shown discreet dynamics, increasing by just 1 euro, from 50 euros in the first 6 months of the previous year to 51 euros in the first semester of 2023.
The upward trend that started at the beginning of 2022, abruptly interrupted by the conflict in Ukraine last spring, resumed during the summer and continued until the beginning of 2023. In January 2023, there were nearly 15% more orders compared to January 2022. However, following the pressure generated by inflation and the anticipated global recession, the growth slowed down, even stagnating in April 2023 compared to April 2022.
In the first semester of the year, the peak in the number of orders and transaction values was observed in May 2023.
At the platform level, the total volume of online sales for the nearly 2000 stores using MerchantPro, including those activated in the second half of the previous year, has increased by 22%.
Analisys by domains: more comfort, less fashion
The Romanians' appetite for online shopping as a quick, convenient, and secure way to make purchases across all categories continues to thrive in 2023. Furthermore, as Romanians continue to spend a lot of time at home, either working remotely or enjoying moments of relaxation in the comfort of their own homes, the demand for Home&Deco products has significantly increased in the first 6 months of 2023.
Compared to the same period in the previous year, the Home&Deco segment has experienced the highest growth in the number of orders (+33%). The average order value has reached 100 Euros.
“The digitalization of consumer habits is becoming increasingly obvious, even in segments associated with traditional commerce. Home&Deco is a good example. Over the past years, online transactions in this category have been consistently growing. With just 2-3 clicks, consumers can explore various brands, decor options, compare prices, read reviews, all without the need to physically visit stores. Essentially, eCommerce has made the process of purchasing home and decoration products easy, accessible, practical, and fast. And in this context, the notable difference lies in the consumer's experience on the website - solutions optimized according to the consumer's needs, from fast loading times and product presentations to payment and return options," states Arthur Radulescu (in opening picture), CEO of MerchantPro.
During the period of January to June 2023, the number of orders for sports articles remains stable (+6%), while the IT&C segment has seen a significant increase of 32% compared to the first 6 months of the previous year.
In the Fashion domain, there is a slight decrease in the number of orders (-5%), but the average order value has slightly increased from 32 Euros to 34 Euros.
"Online merchants need to adapt to a more cautious purchasing behaviour and intense competition. The battle for customers' attention and budget is fierce and, in my opinion, a test of endurance. Entrepreneurs who build their businesses for the long run have much to gain. The most adept ones are focusing on improving the website visitors' experience, which has become more crucial than ever. The impact of a well-optimized website, with fast loading speeds, is immediately evident in conversion rates and sales, regardless of the domain, and in the long run, it leads to customer retention and loyalty. Significant investments are being made in automation, including the integration and adoption of artificial intelligence solutions, as well as enhancing store performance from the visitors' standpoint, at the storefront level", stated Arthur Radulescu, CEO MerchantPro.
As a result of this performance-oriented approach, MerchantPro has attracted several new or mature online stores to the platform in the last 12 months, many of which had previously used other eCommerce solutions. With the activation of these stores, the total volume of online sales made by the merchants on the platform, including those activated in the second half of the previous year, has increased by 22%.
"The consolidation of the market has a positive impact on the platform's activity because we have attracted new online stores with significant sales volumes," explained Arthur Radulescu.
MerchantPro is a project of the company ShopMania Net, targeting eCommerce entrepreneurs in Romania and Europe, offering competitive eCommerce functionalities, professional support services, and personalized solutions tailored to specific development needs.
The MerchantPro platform is widely used at a regional level, with over 5,000 online stores utilizing its functionalities over the span of 15 years of presence in the market. In the last two years, MerchantPro has further consolidated its presence in the domestic and international markets, with nearly 2000 active stores in Romania and a continuously growing number of businesses in Western and Southeastern Europe.
*This is a Press Release.