Extensiv Market Insights Shows Shopify and Amazon Growing Sellers, Not Orders
July 30 2024 - 11:00AM
Extensiv— delivering omnichannel software solutions for warehouse,
inventory, and order management — today announced a summary of key
findings from its 2Q 2024 Market Insights research which analyzes
the order volume trends and seller dynamics across different
ecommerce platforms. The 2Q insights indicate a complex picture of
the ecommerce sector, with both Amazon and Shopify seeing a
decrease in order volumes per seller despite increases in the
number of sellers. This trend suggests market saturation where the
influx of new sellers is not matched by an equivalent growth in
orders. The overall drop in orders also indicates consumers
are being more cautious with their spending. However, other smaller
marketplaces saw growth in both seller and orders per seller,
indicating that ecommerce brands are diversifying sales channels.
The 2Q 2024 Market Insights research is based on data from
Extensiv's proprietary platform. Extensiv Market Insights, launched
in 2022, provides order volume trends for leading vendors like
Amazon, Shopify, and other marketplaces based on data from
Extensiv's platform, which analyzes over 170 million orders per
year from more than 10,000 online sellers. This enables brands to
benchmark their results to the broader ecommerce landscape.
To access Extensiv’s trend data, visit
www.extensiv.com/market-insights.
Key Highlights from 2Q 2024 Extensiv Market Insights:
- Amazon Sellers Hurting for Order Volume: Data
indicates that while orders per Amazon seller saw a 7% decline
compared to 2Q23, the overall count of sellers rose by 18% during
the same period year-over-year (YoY). Additionally, there was a 22%
reduction in the orders per seller as compared to 1Q24, despite a
6% increase in sellers quarter-over-quarter (QoQ). These trends
imply an increasingly saturated and competitive marketplace for
sellers, with demand not rising proportionately. This marks a sharp
reversal after 6 consecutive quarters of double-digit volume
growth, indicating consumers may be pulling back on spending.
- Amazon Prime Day Outcomes: Amazon reported an
11% in sales increase as compared to last year's Prime Day.
However, Extensiv’s market data suggests a notable trend where the
overall order volume grew, but individual sellers did not
experience the same degree of business expansion. Extensiv tracked
a 15% year-over-year increase in orders and a 14% rise in the
number of sellers during Amazon Prime Day, resulting in average
order increases of just 1% across all sellers. This implies that
while the market is becoming increasingly crowded with new
individual brands, the surge in orders may not be keeping pace
positively for these newcomers.
- Shopify Sellers Skyrocket. Shopify experienced
an 8% decrease in orders by seller YoY, with a significant 36% YoY
increase in sellers. While sellers also increased over 1Q24 by 8%,
Shopify customers saw orders decrease by 13% QoQ. This growth in
seller numbers, not matched by order volumes, points to a
competitive landscape where differentiation and innovation become
key for seller success.
- Other Marketplaces Gained Share. All other
marketplaces, such as eBay, Walmart, and Etsy, saw an increase of
11% YoY in their order volume per seller and an increase of 8% QoQ.
The number of sellers also increased 17% YoY and 5% QoQ. With many
brands struggling to grow revenue and maintain sales YoY, this
trend points to brands diversifying their assortment of
marketplaces, to control and improve profit margins and
differentiation.
“With nearly one-third of consumers reporting a decrease in
spending in Q2, we’re seeing consumers taking caution amidst
economic uncertainty,” said Aaron Stead, president of Extensiv.
“The current market conditions mean that ecommerce brands must
innovate and expand beyond traditional platforms to thrive,
exploring diverse marketplaces and adding new sales channels to
leverage opportunities for margin control and access to new
consumer segments. We’re also seeing brands look for greater
savings on shipping, through rate shopping and carrier
negotiations, to offset any profit erosion they see on the more
competitive marketplaces.”
Additional resources:
- Extensiv Market Insights
- Extensiv 2024 State of the Third-Party Logistics Industry
Report
- Extensiv Third-Party Logistics
Warehouse Benchmark Report
About Extensiv
Extensiv, formerly 3PL Central, is a visionary technology leader
focused on creating the future of omnichannel fulfillment. We
partner with warehouse professionals and entrepreneurial brands to
transform their fulfillment operations in the radically changing
world of commerce and consumer expectations. Through our unrivaled
network of more than 1,500 connected 3PLs and a suite of
integrated, cloud-native warehouse management (WMS), order
management (OMS), inventory management (IMS), and integration
management software, we enable modern merchants and brands to
fulfill demand anywhere with superior flexibility and scale without
painful platform migrations as they grow. More than 25,000
logistics professionals and thousands of brands trust Extensiv
every day to drive commerce at the pace that modern consumers
expect. Learn more at www.extensiv.com.
Extensiv Contact:
Jill Hillen
jhillen@extensiv.com