Online shopping curve “flattened”

Online shopping curve “flattened”

March and April of 2020 have been one the most impressive months so far, with the growth of e-commerce year-over-year hitting at the 70-100% rate (orders/revenue). As we mentioned previously, the wave of shoppers (and their purchases) was comparable to the last holiday season. However, starting the last week of April and during the first week of May, this activity started to fade out.

Part of the fade can be attributed to the fact that the shopping spree is coming to an end, and people bought everything they needed to survive the quarantine, at least for now. On the other hand, US unemployment filings topped 30 million last week, which is 20% of the working population in the US. The scale and the speed of unemployment would sooner or later result in a massive decline in sales as people lose their source of income. These days, many Americans are struggling with paying their rent and utility bills, let alone online shopping (which is getting lower and lower on their totem pole of priorities).

As the economy reopens and recovers, we might see new waves of shoppers later this year. But for now, those waves will be limited and localized only to certain goods (i.e., scissors, trimmers, and hair dye as people felt the need to cut/color their hair after a few weeks in lockdown).

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