Online Consumer Purchasing Sees Strong Growth, But Pricing Sharply Lower
While many online consumer purchases have grown in recent weeks — including in the areas of entertainment, health, wine/spirits, and computer software — as a result of more people staying at home due to the COVID-19 virus, pricing/average order value is drastically lower.
“Every day is Black Friday,” according to a new study from ad-technology company SteelHouse. “Ecommerce prices are dropping fast, while purchases increase.”
Big-time price discounts across many consumer categories are a major reason, according to the study’s authors, causing much lower “average order value.”
The number of entertainment purchases is up 19% week-over-week for the two-week period from March 13 through March 26, but the average order value is down 43%. In addition, the number of consumers making those purchases is 17% lower.
There were similar results for health/wellness products and services — 20% higher in the number of purchases, with an average order value down 29%. The number of consumers buying those products is 4% higher.
In addition, computer services purchases are higher due to more consumers staying home, at 45%, with the average order value down 21%.
At the same time, there has been an expansion due to growth in “essential” buying.
The study also notes after the hoarding in the first weeks of COVID-19, there has been a decline in essential buying: Food/Beverage is down 22% in the last week of March versus a 124% increase in the previous week. Mental Health Care is 40% lower versus an increase of 41% early in March.
Buying of wine/spirits is 41% higher against 31% lower pricing (average order value). Luxury goods/jewelry is up 55% when it comes to individual purchases, against 8% lower pricing and 35% more consumers making purchases.
Research also shows consumer electronics buying is up 61% in the most recent week.
SteelHouse says public donations are up 67% in the third week in March and 51% higher for the fourth week.
SteelHouse analyzed over one billion dollars per week in customer ecommerce sales, beginning on March 13.