Welcome back!
With talk of recession, continued supply chain disruptions, and general uncertainty, sometimes it’s hard to know how to respond. That’s why we’re here.
In this report, we’ll look at how the eCommerce industry is doing, where it might be headed, and what that means for you and your business.
A lot of people talk about what’s happening, but here’s one major… HUGE difference between this report and all the others -
We do the bookkeeping for over two dozen eCommerce businesses. We have the actual, real numbers.
While of course we’ll never share sensitive information, we can look at trends across our data set to tell you where the market is from our point of view.
And in addition to the raw data, we’re in conversation with dozens more eCommerce business owners and service providers. Data is great, but it’s only one side of the story, so we’ll include what we’ve seen and heard from entrepreneurs in the trenches.
In this report, we’ll go through the information, provide our interpretation, look at how that fits in with the broader economy. Then we’ll provide some recommendations.
Ready to dig in?
Table Of Contents
High Level Overview
Our Main Message To You
The Data
Our Interpretation
Economic Outlook
Actions You Can Take Now
How We Can Help
Wrapping Up
High Level Overview
Sales Are Down…
As you’ll see from the data, sales for most businesses are down no matter how you measure it - year over year, this quarter from last quarter, or the time period we’ll use (described below).
…But Compared To What?
In the last report we discussed how the COVID sales spike and its return to baseline is working through the economy. Here’s that chart again.
So, are sales down?
Compared to last quarter, yes. Compared to last year, yes.
Compared to 2019? And, compared to your business in 2019?
We can’t really say. Because businesses grow over time, it’s hard to compare where you “should be” with where you are.
Our Main Message To YOU
Normally I’d wait until the end to wrap this up, but I want to hit you with it right at the top.
You’re going to be okay. Keep going.
Business is always challenging. There are real economic concerns, but there’s good news too!
Many businesses are doing really, really well!
And even if you’re struggling, don’t forget that there’s opportunity in every situation, “good” or “bad.”
Focus on the basics, and prepare for a potential storm. We’ll have recommendations on how to do that below, but I want you to know we’ve got your back.
We’re here for you, so if we can help in any way, we will. And that includes helping you prepare to take advantage of the incredible opportunities that will come soon.
Here are just a few opportunities we see coming:
Great acquisition deals
Competitors may disappear
Build extra loyalty if you serve customers well
Take extra market share when the storm blows over
(Better yet, take market share now! Why wait?)
If you’re doing great - keep it up! But don’t blindly keep doing the same old thing. Diversify your marketing channels so that if one stops performing, you’re not solely reliant on it. Make preparations so that if you do get a sudden drop in sales, you’ll remain unscathed.
If you’re not doing great - you’re in good company. Almost everyone I talk to these days is concerned, at least. A drop in sales is not necessarily because you did something wrong. It might be beyond your control. But you can take steps to limit the damage, and build sales back up, even in this volatile market.
With that, let’s get into it!
The Data
After pouring over all of our data, here’s what we believe are the relevant numbers.