Traffic and Conversion Rate Plunge in August

Each fortnight, Power Retail publishes the latest data and insights on the e-commerce industry so that retailers can benchmark their performance against the wider market. These fortnightly reports draw from the aggregate, anonymised benchmarking data of over 10 million online sessions per month from a broad cross-section of Australian online retailers, plus fortnightly survey data with a minimum of 1,000 respondents in each survey. 

The latest Trajectory Report #51 showed the average conversion rate near the end of August was 2.4%, a stark contrast to the 3.2% we saw at the same time last year. Similarly, website traffic to the Top 100 online retailers has dropped 12% year-on-year.

The dip in both traffic levels and conversion rate speaks to the current economic landscape and pressure on consumers. This downwards trend wouldn’t come as a surprise. In July, we could see that consumer confidence was dipping, with 21% saying they planned to decrease their online spend in the coming month and 20% saying they planned to increase their online spend. And, as the coming month approached, we saw this in action. When those planning to decrease spend outnumber those planning to increase spend, we know the coming month will be difficult for online retailers. For context, last November, 46% said they planned to spend more online, showing the boost during peak purchase periods.

Source: Power Retail Switched On Trajectory Report #51

The majority (58%) of shoppers who plan to decrease online spend said they were saving money for essentials. With the cost of food and petrol sky-rocketing, it’s clear this is eating into discretionary spend. Almost a quarter (23%) said they are planning to decrease spend because not as many retailers are offering bargains or sales items. Fifteen percent said they are planning to decrease spend because their income is reduced or they are worried about their future employment status and need to save.

Source: Power Retail Switched On Trajectory Report #51

Find out more about how consumer behaviour is changing and industry benchmarks. Download Trajectory #51, FREE to Power Retail Switched On Members.

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