Admitad forecast: Prospects for the E-commerce industry during the upcoming holidays
Admitad, part of Mitgo, a leader in online advertising solutions with in-depth expertise in the online advertisement market has released the findings of its latest report. The approaching holiday season presents another significant opportunity for the e-commerce industry. To even more precisely determine the sales potential that this time brings for the industry, Admitad analyzed 11 million orders placed by users between December 18, 2022 and January 7, 2023 of about 2850 brands worldwide and in India. The results reveal both global trends and unique characteristics of the Indian market.
Global sales trends
General statistics from the global market showed some interesting trends in the period from December 18, 2022 to January 7, 2023. While the number of orders decreased by 1.5%, the value of GMV (Gross Merchandise Volume) increased by as much as 7.2 %. The average order value (AOV) increased during this period from 36.2 USD to 39.4 USD (an increase of 8.8%), while the share of mobile orders in total sales was 33%.
Unexpectedly, sales via marketplaces dropped from 64% to 60%. During other active sales periods, such as Black Friday and Singles’ Day, traffic on these platforms increased. This may mean that the upcoming holiday period is a great opportunity for owners of online stores, websites, and apps, as sales growth in e-commerce is likely to occur there.
When it comes to sales sources, they may turn out to be very diverse during the holiday season. The most effective ones include: content platforms, cashback services, partner stores, coupons, and mobile applications. Interestingly, contextual advertising turned out to be 15% more effective in the analyzed period, while in-app advertising was 25% more effective.
Experts predict dynamic development of Indian e-commerce
Forecasting sales during the Christmas and New Year period based on the analysis of collected data, a dynamic development of the e-commerce market can also be expected in India. Investing in the development of your own trading platforms, websites and applications can become a key element for success-oriented strategies. They should also use information about the most popular product categories and take them into account when creating their Holidays offer.
Analyzing the data procured by Admitad, Neha Kulwal, Managing Director, Mitgo, India and APAC said, “In the Indian market, there are some similarities to global trends, along with some novelties which are unique to this market. In the period from December 18, 2022 to January 7, 2023, the number of sales and GMV increased locally by 5%, while AOV decreased from 21 USD to 18.5 USD. Mobile orders in India also decreased from 50% to 38%, and the share of sales from marketplaces dropped to 51% compared to 55% during the ordinary period.”
On the contrary, during 11.11 and Black Friday share of marketplace sales usually increases. So this is a good moment for brands with their own trading platforms/websites/apps to shine. India also saw significant growth in product categories such as online games (+33%) and events tickets and entertainment (+25%). This shows that the customers preferred to spend on experience more than goods during this period.
To sum up, the forecasts for the coming weeks are very promising for the entire e-commerce industry, provided that marketers demonstrate flexibility towards changing market conditions. It is worth emphasizing that developing trends indicate the need to constantly adapt the business strategy to changing customer expectations. Understanding the specificity of individual local markets will also be of particular importance, which may become a key element of the global success of the e-commerce industry.
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