Marketing

That is why online purchases have been declining since June – eCommerce Magazine

The results of the latest survey by AfterPay Insights show that the increase in the E-commerce development reached a plateau in Germany, the Netherlands and Norway in May 2020, with similarly declining growth rates that can also be seen in the first half of June. Is the slowdown in growth due to the gradual opening of societies?

E-commerce development shows reduced growth rate

The study by AfterPay Insights on the current behavior of consumers in the e-commerce sector provides answers from more than 19,000 consumers in the Netherlands, Germany and Norway over a period of three months. The results show that the number of purchases decreased by twelve percent compared to the second half of May.

Nonetheless, there is still an increase of 21 percent compared to purchases prior to the Corona outbreak. The reduced growth rate is largely due to the decline in purchases of food and household goods (minus 25 percent) and take-away meals (minus 27 percent) in the first half of June. These two categories account for 36 percent of the total drop in online shopping in the first half of June.

E-commerce development
The study results from Afterpay insights.

E-commerce development has been increasing since the beginning of the Corona crisis in the Netherlands

From the second half of May to the first half of June, the total number of e-commerce purchases decreased by twelve percent, which corresponds to an overall increase in purchases since the Corona outbreak of 31 percent. The decline in the first half of June was mainly due to lower grocery and household goods purchases (down 19 percent compared to the second half of May) and take-away meals (down 21 percent).

The number of online purchases within the fashion industry was unaffected in the first half of June, and the only categories where purchases increased were gardening tools (up 64 percent) and travel and transportation (up 22 percent). However, this had a minimal impact on the total, as each of these categories accounts for only one percent of all e-commerce purchases in the Netherlands.

E-commerce development has been declining in Germany since May

From the second half of May to the first half of June, the total number of e-commerce purchases decreased by eleven percent, which corresponds to an overall increase in purchases since the Corona outbreak of 21 percent. The decline in the first half of June was mainly due to lower purchases of take-away meals (minus 44 percent compared to the second half of May) and second place for groceries and household goods (minus 19 percent).

Lower media / entertainment purchases (down 17 percent) also contributed to the overall decline in e-commerce purchases. In contrast to the overall development, the number of purchases in the fashion sector rose significantly (plus 16 percent). Other significant categories that showed an increase and a decrease in the general decline were in toys (plus 26 percent) and hobby goods (plus ten percent).

Norway has fewer food purchases

From the second half of May to the first half of June, the total number of e-commerce purchases decreased by eight percent, which corresponds to an overall increase in purchases since the Corona outbreak of 13 percent. The decline in the first half of June was mainly due to lower purchases of food and household goods (minus 48 percent compared to the second half of May) and secondly to fashion (minus 8 percent) and hobby goods (minus 23 percent).

The main categories that saw an increase and contributed to the reduction in the overall decline were tickets (64 percent) and travel and transportation (46 percent), which somewhat offset the sharp reductions that these areas experienced during the Corona outbreak . However, these categories still record less than a third of online purchases than before the Corona outbreak.

Also read: Corona buying behavior: Germans are increasingly discovering smaller online retailers