2022 was truly exceptional for a number of reasons. First, most of the world is emerging from the pandemic and adapting to a new lifestyle. Besides, there is also the Russo-Ukrainian War which has contributed to the energy crisis and the global cost of living. In fact, many experts say the cost of living hasn’t affected since the 1970s. For a sector that was already suffering, all these factors increased the challenges facing the e-commerce industry many times over.
So, the question remains – how do retailers measure the performance of their business in such times of uncertainty?
They certainly cannot compare their performance with the previous year as a benchmark. They can’t compare it to expectations either. It would be more useful to measure their progress against companies of similar size in a similar vertical sector and sell them in the same area. This is exactly what we will cover in this article.
Industry standard data for 2022 for e-commerce companies
Next-generation e-commerce data analytics platform, Conjura, shared the following insights into the retail industry in a recent report –
- Less revenue is generated during the week of Black Friday and the weeks following/before it.
- For the average UK business, annual revenue (on an annual basis) is declining every month.
- Although monthly e-commerce traffic in the UK has been up (on an annual basis), this has not contributed to the revenue growth for this segment.
- The D2C (Direct to Customer) business in the US continued to grow this year. They recorded 14.5% year-to-date growth in 2022, compared to 2021. However, this growth was significantly lower than the growth in 2021 to 2020 (31%).
- The beauty, health, and fashion industry experienced growth in 2022, however, this growth was also slower compared to the previous year.
- The home and garden industry also experienced a decline in growth throughout 2022, through August.
- The CAC index for paid search shopping has been increasing in the US since July 2021, while in the UK, this trend has seen a steady decline in both the second and third quarters of 2022.
- The CAC index of paid social media in the US declined for the second and third quarters. In the UK, on the other hand, it has been steadily increasing since the third quarter of 2021.
What does Golden Quarter 2022 hold for the retail industry?
The fourth quarter of 2022 could be key to offsetting the low growth the retail industry has experienced in the past few years. Several items that should have gone on sale in the fourth quarter are already on sale. But there is a positive side to all this, as many customers plan to shop online instead of going to stores. So, the main consideration for retailers this year is whether they can provide more discounts to their customers.
Why e-commerce standards are changing the game
Discounting is expensive, and with additional cost pressures, it can be difficult for retailers to deal with increasing energy costs and changing customer behavior. During these challenging times, the most important thing is to develop a better understanding of –
- The buying habits of their customers
- How is the retail sector responding to changes?
- How are their competitors performing?
Answers to all of these questions can be found with Ecommerce Measurement. All you have to do is link your business data to get useful insights about your industry and your competitors. When you are able to understand and predict the trends shaping your industry, you better understand what needs to be done to respond to market conditions. At the micro level, you will be able to determine whether or not you have bypassed the online marketplaces.
Retail benchmarks can also help you measure the performance of both tactical and strategic initiatives you have taken in the past. This will help you validate any strategic decisions you make in the future.
Benefit from e-commerce benchmarking with Conjura
Conjura’s eCommerce Benchmarking tool allows brands to access all of their performance metrics and benchmarks in one simple and intuitive view.
Ecommerce businesses can deploy the tool in minutes and filter dashboard searches by region, column, average selling price, revenue ranking, and more to reveal instant competitive insights that show how their business is stacking up against industry benchmarks.
With this critical on-demand information, brands are better equipped to understand market trends, validate their strategies, and uncover potential gaps.
Are you interested in gaining a competitive advantage in the industry? Try Conjura’s Ecommerce Assessment for free.