Ecommerce sellers from all over the globe have enjoyed a surge in sales since the beginning of the pandemic. Whilst most experts predict that this is a trend that will continue for the foreseeable future, recent data has suggested that the staggering growth of ecommerce may be about to start losing pace. Today we’re going to take a look at the latest data and discuss whether ecommerce sellers should be concerned.
So, What Data Is Suggesting That Global Ecommerce Growth Is Beginning To Slow?
The Salesforce Q3 Shopping Index has published data from across the globe that has analysed the current state of ecommerce. Before you get too concerned, it is worth pointing out that whilst the data has shown that ecommerce growth is slowing, it is still growing nonetheless. Global online sales enjoyed an 11% growth in the third quarter of 2021.
This is obviously a positive development, but the only slight concerned is that this is a big drop from the 63% growth that sales enjoyed during the same period last year. Of course, on the face of things this isn’t the best news, but it would probably be unrealistic to expect ecommerce to continue growing at such an unprecedented rate, especially with countries currently recovering from the pandemic and brick-and-mortar stores reopening.
What Does The Data Look Like When You Delve A Bit Deeper?
Looking a bit deeper in the data, you can see that the results are differing depending on which country you’re looking at. For example, Netherlands are an interesting country to look at in Europe due to the staggering growth the country’s ecommerce industry has exhibited.
Dutch consumers are now shopping less from cross-border suppliers from the EU. In addition, the growth of Dutch online stores has also began to lose pace. This is obviously due to consumers returning slowly back to brick-and-mortar stores. On the other hand though, Dutch omnichannel sellers have recorded growth of 20% higher than last year.
Other countries are also showing varied results in other aspects. Whilst countries such as the UK and Netherlands are showing low rates of cart abandonment, Belgium are doing even better. They are averaging cart abandonment as low as 66% which is much lower than the global average.
So Should You Be Concerned?
The really simple answer is no. The truth is that ecommerce is still growing and will continue to do so. The decrease that research is currently displaying was inevitable. During lockdowns, consumers had no choice but to shop online in most cases. With brick-and-mortar stores reopening it was inevitable that ecommerce would see a slight drop off.
But it is clear to see that ecommerce will continue to be the strongest business model for sellers, and this will only increase as supply chains regain some of their resilience. Once again, we would like to encourage you adopt a omnichannel approach to your ecommerce business. This doesn’t necessarily have to be in the form of opening up a physical premises, but perhaps you should consider beginning to sell on an online marketplace such as Amazon. As we support many Amazon sellers, we can definitely help you out should you wish to go down this route.
If You Are An Ecommerce Seller, We Can Provide You With Solutions
Whether it is expanding your business to another country or you just need supply chain support, we at J&P Accountants have been supporting ecommerce sellers for years and can offer you a range of services.
If you are a business who participates in cross border ecommerce, we would be more than happy to help you register for VAT, file your VAT returns, and help you comply with VAT in case your account faces any issues. At J&P, helping your business is our passion, and we understand that companies across the UK are at risk now more than ever. We are here to support you through the Coronavirus crisis and the busy festive period, so please do not hesitate to give us a call on 0161 637 1080 or send an e-mail to enquiries@jpaccountant.com.
