October 2016 ChannelAdvisor Same Store Sales (SSS)

November 3, 2016

ChannelAdvisor Scot Wingo By Scot Wingo

Important Announcement about ChannelAdvisor Same Store Sales Going Forward:

At ChannelAdvisor our primary focus has always been on our customers.  This is reflected in our recent investments in data and analytics, which includes our same store sales (SSS) data that is now available to our customers through our benchmarking and analytics platform.

As a result, while our monthly SSS reports have become a popular benchmark within the industry, our October 2016 report will be our last regularly scheduled SSS report.  We intend to continue periodically publishing industry commentary based on our data and analyses through our blogs and press releases, especially around the holidays or when specific events or trends warrant.

October 2016 y/y SSS Results

Here are the ChannelAdvisor SSS results for October 2016:

  • Amazon – Amazon’s October SSS came in at 12.7%, an increase compared to September’s 11.8% and in-line with the 15% e-commerce growth rate as predicted by comScore. Further in the report, we look at Amazon details and FBA adoption rates.
  • eBay – eBay’s October SSS came in at 3.2%, a decrease from September’s 4.0% and below the e-commerce growth rate of 15.0%. Further in the report, we have details of the eBay internals.
  • Other 3PM -Non eBay and Amazon marketplaces for October came in at 4.7%, a decrease from September’s 28.7% and the slowest growth this category has experienced in 2016.  While Walmart Marketplace had continued strong performance, it was offset by softness in other marketplaces.
  • Google Shopping/PLA – GS came in at 41.6% y/y growth for October, a decrease from September’s 51.7%. Google Shopping details are provided later in the report.
  • CSE – Comparison Shopping Engines came in at 28.6% for October, an increase (largely driven by PLA) from September’s 27.5%.
  • Search – Search (Google AdWords and Bing/Yahoo! AdCenter) came in at 1.7% for October, an increase from September’s 0.1%. We provide more search details later in the report.

SSS Chart

The following chart details the SSS data for October 2015 through October 2016: (click to enlarge.)

oct16_sss_main_chart

eBay Details

eBay’s SSS for October were 3.2%. To get a feel for what drove the marketplace’s performance, here are the interior data points for the month:

  • eBay auctions – October’s eBay auction SSS were negative 32.3% y/y, a decrease from September’s negative 30.1%.
  • eBay fixed-price – Came in at 1.5% y/y in October – a decrease from September’s 2.0%.
  • eBay Motors (parts and accessories) – P+A for October was 11.3% – a decrease from September’s 12.6%. eBay Motors P+A continued to be the bright spot in the eBay SSS results, growing fastest of all the eBay components and coming in close to the e-commerce growth rate.

Here are the TTM (trailing twelve month) trends on these eBay internals. (click to enlarge)

oct16_sss_ebay_details

Amazon Details
We watch two Amazon internal data points around FBA adoption and FBA/off-Amazon trends:

oct16_sss_amzn_details

Note: These are all y/y SSS comparisons (October 2015 vs. October 2016).

  • Percent FBA – This measures the % of Amazon GMV through the ChannelAdvisor system that was fulfilled through FBA and tracks it on a y/y basis. For October 2016, 38.3% of Amazon GMV was FBA. That was up 17.5% from a year ago, October 2015, where 32.6% of the SSS GMV was FBA.
  • % FBA non-Amazon – Here we look at the total bucket of FBA-driven GMV and look at the % that was not fulfilled for Amazon sales (website, other 3PMs, Search, CSE, etc.). In October 2015, 2.8% was non-Amazon fulfilled. Then in October 2016, we saw this decrease 16.5% to 2.4%.

Supplemental data for Google Shopping
Here is the October 2016 Google Shopping/Product Listing Ad supplemental data:

oct16_sss_gs_pla_details

Overall, Google Shopping/PLA for October came in up 41.6% y/y. The conversion rate was down this month y/y declining 13% from 2.33%(October 15) to 2.03% (October 16). AOV increased 12% from $114.28 a year ago to $128.14 in 2016.

Supplemental data for Search

Here are the October Search internals: (click to enlarge)

oct16_search_details_final

Note: These are all y/y SSS comparisons (October 2015 vs. October 2016).
Clicks (a measure of volume) were up 16% and cost was up 8% with CPCs down 6% to $.42. Orders were up 3%. Conversion Rate (CR) was down 11% to 3.60%. AOV increased slightly 4% y/y to $157.26.

Conclusion

Heading into Holiday 16, October ChannelAdvisor SSS results showed that Google Shopping and CSE grew faster than e-commerce.  Amazon and eBay P+A grew in-line with e-commerce.  eBay (all-in, fixed price and auction), search and other 3Pm grew slower than e-commerce.

Finally, we have been publishing this data monthly since early 2011 and want to thank everyone for coming along on a 5yr journey with us where we tracked the various ups and downs of the e-commerce landscape. Thanks for your input, questions and readership, it has been a great experience and I learned something new every month!

Going forward if you want more general e-commerce trends and interviews, I invite you to check out a weekly e-commerce/retail focused podcast I co-host with the SVP of Digital @ Razorfish, Jason Goldberg called the Jason and Scot show. You can learn more here.

jason_and_scot_logo

This blog post was written by Scot Wingo, Executive Chairman and Founder, ChannelAdvisor.