Ecommerce Traffic Dips 3% in 2022, but Opportunities Persist

Global Ecommerce report finds pockets of growth amid a slowdown in the digital economy

Following COVID-fueled growth in ecommerce, the digital economy has experienced a slowdown in 2022 due to factors such as war, inflation, and economic downturn. Similarweb’s Digital Ecommerce Landscape report analyzes the numbers behind this slowdown, using customer behavior on websites and mobile apps to identify trends and growth opportunities.

Key findings:

• Overall 3% drop in desktop & mobile web traffic across all online categories, worldwide
• Online marketplaces received over 185.5B visits in 2022 globally, accounting for 60% of all traffic to the industries analyzed
• Etsy.com experienced a 12% year-over-year (YoY) increase in desktop & mobile web traffic, the only major global marketplace to show growth in 2022
• The Home & Garden category saw the biggest YoY traffic drop at 7%
• Luxury and jewelry category web traffic increased by 9% YoY, while beauty and cosmetics category web traffic grew by 7% YoY

Despite the turbulence of 2022, some industries continue to grow. The beauty industry experienced a 9% YoY traffic growth, aligning with the famous “Lipstick Effect,” where consumers replace larger expenses with affordable items during economic downturns. However, categories associated with real estate, such as Home & Garden, declined due to the current economic climate.

Industry matrix, 2022 traffic & YoY traffic growth

Global, desktop & mobile web, Jan-Dec 2022

Online demand across all industries remains above pre-Covid levels, and opportunities remain for retailers. Factors such as buyer journeys and user experience should be prioritized alongside price sensitivity. For example, the Buy Now, Pay Later (BNPL) trend has helped online retailers offering BNPL technologies at checkout outpace their non-BNPL counterparts by 13% in converted visits.

Adapting to meet new demand is vital in declining industries. Although the Home & Garden category has seen a decrease in overall traffic, online demand for DIY tools doubled on Amazon, with a 25% hike in revenue from March 2022 to February 2023.

The report provides a performance overview of the digital economy by country and industry, highlighting opportunities for ecommerce retailers to expand into new product lines, geographies, or payment technologies. The opportunities are framed within the context of the Total Addressable Market (TAM) for the countries studied, emphasizing that despite the challenging landscape, opportunities still exist.

Online demand for all consumer goods categories remains significantly above pre-Covid levels despite the impact of various macroeconomic factors. Only four nations saw positive traffic growth in 2022 among the top 20 geographies analyzed: India (+5.2% YoY), Russia (+7.3% YoY), Indonesia (+1.9% YoY), and Vietnam (+16.3% YoY). Brands and retailers looking to grow in 2023 should focus on Asia.

The US remains the core ecommerce market in traffic, with 2022 traffic three times larger than the runner-up, Japan (93.6B visits vs. 31.4B visits). Interestingly, despite high inflation (17.2% as of January 2023), Poland experienced a spike in online traffic to pricey consumer goods retailers, such as Consumer Electronics (+3.9% YoY in 2022), Luxury & Jewelry (+9.7%), and Fashion & Apparel (+6.2%). The influx of Ukrainian refugees, often skilled workers, is likely contributing to the growth of ecommerce in Poland.

The full report provides many more details.

Methodology

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by Inès Durand

Inès provides market research insights in Retail, CPG, and Financial Services. Her work has appeared in Retail Today, CNBC, and AFP.