eCommerce Hockey Stick Growth Begins To Slow

eCommerce Hockey Stick Growth Begins To Slow


The eCommerce sector has advanced by nearly three years during the pandemic, but now it might be on the brink of a swift wind down. The largest data point for us to look at is the behemoth, Amazon, whose YoY revenue growth has slowed to 27%. A year ago, this growth was 41%.

This is a similar trend seen across the entire paid media space including Pinterest. As we would expect, with people returning to the physical world of retail, attention is shifting, and therefore so should eCommerce brands approach to their marketing.

We always expected things to go back to the way they were once the real world re-opened. 2020 was a great year for DTC (Direct To Consumer) eCommerce brands whereby demand overtook supply, with many industries such as cycling requesting 1-2 year lead times for bicycle components to meet the supply for the favoured sport.

The pandemic has seen many entrepreneurs enter the eCommerce space, with varying success stories, but it is now evident this demand is decreasing, of which you may be aware of due to the vast amount of discounted emails from brands you personally shop with, in a bid to hang on to the growth curve they’ve experienced over the past year.

Two recent data points to show this:
After nearly a year of consecutive user growth, Pinterest has reported a decline of users in the first 6 months of 2021, losing 24 million users in the past 3 months.

It is evident that our way of living will continue to adapt and evolve, which is exactly what eCommerce brands will need to do in order to continue to their growth curve. When demand slows down and doesn’t meet supply, the brands that adapt the fastest and create the right noise to generate demand, will win.

Source: Stacked Marketer

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