Just under 30% of all respondents indicated their YOY growth was between 1%-10% while 24% reported growth between 11% and 24%. So, what’s behind these numbers?
- Reported growth is somewhat skewed on the high side due to rampant inflation that is driving higher pricing and resulting higher revenue.
- On a positive note, only 12% of all respondents reported flat or down revenue.
- 2020 specific, one-time COVID driven volume increases set the bar very high for YOY revenue comparisons, but the overall revenue growth rate from 2019 is strong.
To get a clearer picture of e-commerce growth, you need to be looking at both volume and revenue. Additionally, onetime influencing factors like the impact of COVID and inflation also make it difficult to interpret the data.
Another important factor to consider is free shipping which is included in the product sale price, and can artificially drive higher revenue per purchase, but negatively impact overall margin.
Crossroads Parcel Consulting will be reporting on the increased cost of shipping in coming weeks and the impact on ecommerce.
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