Based on customer data from over 11 million transactions and $1.6B processed on its platform in H1, Volusion releases new insights showing 20% yearly sales growth for online SMBs, predicts similar growth for 2013 holiday sales.
After analyzing data spanning thousands of customers, millions of transactions and billions of dollars processed on the Volusion platform from January to June 2013, we’re excited to share impressive growth numbers for SMBs (small-to-medium businesses) online. During H1 of this year, SMB merchants experienced a 19.6% yearly increase in online sales, demonstrating strong performance as more business continues to shift to the online marketplace.
“As this information demonstrates, SMBs continue to play a pivotal role in the growth of the e-commerce space, and is only expected to see increased gains moving forward, especially during the upcoming holiday season,” said Clay Olivier, CEO, Volusion.
Sales growth differs between various industries
While online sales growth for the first half of 2013 averaged 20% across all industries, different industries experienced varying growth patterns. Strong performers include Sporting Goods, Industrial Equipment and Food & Beverage, whereas industries like Computers and Jewelry saw small to moderate yearly declines.
Industries seeing significant increases in online sales performance for SMBs include:
- Sporting Goods: +35.60%
- Industrial Equipment: +34.18%
- Food & Beverage: +22.08%
- Automotive: +17.77%
- Electronics: +17.60%
Other industries experiencing varying degrees of reduced growth during the same time period:
- Computers: -16.28%
- Jewelry: -3.87%
- Non-profit: -2.63%
These declines are consistent with overall economic and e-commerce trends. Worldwide PC sales have steadily fallen over consecutive quarters, explaining the larger drop in the Computers industry. Regarding the Jewelry sector, as the cost of precious metals continue to rise, online shoppers are turning toward larger brands and e-commerce sites that can offer more competitive pricing. A similar story is true for a relatively flat Non-profit category, as online donations are shifting to larger, more established organizations. Based on these trends, SMBs are encouraged to focus on product specialization and customer service to remain competitive.
2013 holiday sales expected to grow 20% for online SMBs
Online shopping has consistently grown over the years, and this growth is projected to continue for SMB e-commerce merchants. For the 2013 holiday season, Volusion expects for online SMBs to experience similar growth rates as the first half of this year, projecting a 20% growth pattern for the holiday season.
As is typically the case, November and December are expected to be the largest spending months, thanks largely to known sales holidays like Black Friday and Cyber Monday, along with the late-holiday rush.
Methodology: Merchant sales figures were collected via proprietary Volusion data, collected for H1 2013 (January-June) and compared to H1 2012. The data set included over 11 million transactions and $1.59B processed on the Volusion platform during that time period. Holiday projections were based on the same data, forecasted into the holiday selling months of 2013.