Today we are releasing July data for Marketplaces (eBay/Amazon), Search and Comparison Shopping Engines (CSE). One FAQ that I receive is about currency rates. These SSS percentages are all in native currency.
July saw a bump up in SSS overall of ~5% compared to June. The results for each channel were as follows with some commentary:
- Amazon – Amazon came in at 62% down from June’s 65%. We continue to annualize more customers on our Amazon 2.0 solution which is where the decrease is coming from as we saw in June. Our data indicates that this will settle down in the mid 50% range over time as we get a more true reading from the Amazon SSS that isn’t influenced by a major release cycle at ChannelAdvisor. That being said, we have several features that are in beta that are dramatically accelerating sales for those merchants in the beta programs. Once those features hit, depending on adoption, it could cause an acceleration due to software features.
- eBay – We finally saw some stabilization on eBay this month, going back to flat y/y vs. the -5.2% we suffered in June. It’s hard to ascertain what exactly is going on as customers still are reporting eTRS challenges and BestMatch.
- CSE – Comparison Shopping Engines came in at 3.13%. This is pretty common for the group to see sluggish growth in the summer months and then really outperform in Q1 and Q4 with some lift in Q3.
- Search – Search enjoyed a dramatic acceleration to 14.19% (up from last month’s 10.5%). Google’s raft of experiments (Product Extensions, Product Listing Ads, Google Product Search w/ Product Listing Ads, merchant ratings in Adwords, SiteLinks) are having a dual effect: 1) pushing Natural/Organic/SEO results down the page (which encourages more paid activity) and 2) increasing conversion rates. The result is a significant bump in SSS. This bodes well for Q4 as there are rumors that Google will un-beta many of these tests and make them permanent additions.
- Overall – Overall we see that e-commerce in July accelerated back to the mid-teens. Hopefully the consumer can remain optimistic as we head into Q4. There are only 113 days until Black Friday, so it’s time to put the final plans together and brace for the Q4 holiday rush.
The following chart details the SSS data for 2010 through July:
- September 7
- October 7
- November 9
- December 7
- Increased frequency for the holiday period TBA
SeekingAlpha disclosure: I am long Google and Amazon. eBay is an investor in ChannelAdvisor where I am CEO.