The State of Fashion Ecommerce: Global Data, Trends and Insights

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While retail leaders like Amazon continue to dominate non-fashion categories globally, they’ve yet to crack the code of how to successfully replicate the online fashion shopping experience. At the same time, to satisfy consumer desire for personalized experiences, many fashion retail brands are adopting an “online first” mentality.

This creates a massive opportunity for brands in this space to deliver 1:1 experiences to customers and make a lasting impression. And with annual consumption in emerging markets nearing $30 trillion by 2025, fashion brands and retailers have an even bigger opportunity to mark their territory in the ecommerce space within the next 3-5 years.[1]

To help fashion ecommerce companies capture this opportunity, our Shopware technology partner Nosto has analyzed granular consumer behavior from 1.2 billion site visits across a wide cross-section of growth-stage online stores within the fashion industry.  

What does this report include?

The merchants analyzed in this report are composed of retailers who used the Nosto platform throughout the whole of 2018, and were selected based on their sales profile in order get an indicative sample of insights. 95% of these merchants generate online sales between €500k and €30m.

From this visit data, we’ve analyzed and benchmarked 7 key metrics on an annual and monthly basis, broken out by mobile and desktop devices:

  • Traffic share by device
  • Revenue per visit (RPV)
  • Basket size
  • Conversion rate (CR)
  • Average order value (AOV)
  • Cart abandonment rate (CAR)
  • Time spent per visit

Data is also analyzed both on a global and regional level, showcasing individual performance mainly across the regions of North America, United Kingdom, Nordics (includes Denmark, Finland, Norway, and Sweden), France and DACH (Germany, Austria and Switzerland).

But because we don’t want to give away ALL the details, in this post we’ll reveal a few of our findings across revenue per visit, cart abandonment rate and average basket size categories! Your sneak peek awaits you…

1. Revenue Per Visit (RPV)

Globally, desktop is still generating the highest RPV (€2.39), whereas mobile lags behind at €1.25. 

Between Q1 and Q4 of 2018, fashion ecommerce merchants globally saw a 33% increase in average revenue per visit (RPV) on desktop and a 38% increase on mobile devices. One potential catalyst for this increase (though certainly not the sole reason) was November’s Black Friday/Cyber Monday weekend — one of retail’s most anticipated shopping periods of the year — which yielded the biggest seasonal spike of 2018.

French retailers generated the lowest RPV on mobile (€0.61), falling behind the Nordic region (€1.79) DACH (€1.43) and North America (€1.32) - the result of France falling behind other regions in both conversion rate and average order value on mobile.

While RPV is generally higher on desktop than on mobile in all regions, DACH saw an exceptionally high RPV on desktop (€2.99) — indicating that DACH consumers are more committed to shopping online via desktop. Although mobile commerce is present in this region (1/3 of purchases are made on mobile devices[2]), there are still a few factors that deter consumers from turning to their smartphones: such as reluctance to share their personal data and a suggested lack of focus on optimizing the mobile shopping experience in this region. 

 

2. Cart Abandonment Rate

Overall, cart abandonment rates (CAR) were relatively stable throughout 2018, and most regions are relatively clustered together. Globally, we saw a 80% cart abandonment rate on mobile and 74% on desktop.

However, DACH is the one outlier — it yielded the lowest CAR on both desktop and mobile. These consumers appear to be “committed shoppers” — if they add something to cart, they are most likely to end up making a purchase. As mentioned in section 3 (Average Basket Size), German consumers are prone to returning products —  and with the highest basket size of all regions, evidence of a prevalent “buy many sizes, return the ones that don’t fit” phenomenon becomes noticeable. These same consumers are also known to be very brand focused and loyal to the brands they love and trust: two-thirds of them are prone to sticking with a brand they favor above all others.[3]

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3. Average Basket Size

Unsurprisingly, the global average basket size was higher on desktop (2.45) versus mobile (2.13). On a regional level, global average basket size across DACH was highest on desktop (4.4) AND on mobile (3.5) relative to the world. Overall, DACH countries averaged the highest basket size (3.8), with Germany averaging the highest share of population (53%) that returns online purchases.[4] The correlation: German regulations protecting consumer rights and behavior allow shoppers to buy multiple colors and sizes and easily return unwanted items.[5] Shipping costs also come into play, with Germany averaging €20- the third highest in the EU). This suggests that these consumers may also be willing to shop more products per session to cut down on this cost. 

Meanwhile, in the Nordic region a contrast is revealed: while this region yielded the lowest basket size compared to other regions, RPV on mobile was highest of all analyzed regions and mobile share of traffic is strong. This suggests that shoppers in this region are prone to buying fewer, more expensive items on multiple occasions rather than purchasing more items per session.

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Want to access more trends impacting DACH and other key markets around the world?

 

Download the full report today and access:

  • Trends in mobile commerce that ecommerce managers need to know
  • Breakdowns of global and regional merchant performance
  • One emerging trend affecting profitability for retailers worldwide.

 

To the Nosto Fashion Report