Admitad Forecast: Predictions for the E-commerce Industry in the Upcoming Holidays
The approaching Christmas and New Year period presents another significant opportunity for the e-commerce industry. To better assess the sales potential during this time, Admitad, a global affiliate marketing network, analyzed 11 million orders of 2850 brands worldwide and in MENA placed by users between December 18, 2022, and January 7, 2023. The results obtained by the company shed new light on both global trends and unique features of the MENA market.
Global Sales Trends:
General statistics from the global market during December 18, 2022, to January 7, 2023, reveals interesting dynamics. Despite a marginal 1.5% decrease in the number of orders, the Gross Merchandise Volume (GMV) witnessed a substantial 7.2% increase. The Average Order Value (AOV) demonstrated a noteworthy 8.8% growth, rising from $36.2 to $39.4. Mobile orders constituted a substantial 33% of total sales.
In an unexpected turn, sales through marketplaces declined from 64% to 60%. This suggests a potential advantage for proprietors of independent trading platforms, websites, and applications during the upcoming Christmas period.
Diversity characterizes sales sources during the festive season, with content platforms, cashback services, partner stores, coupons, and mobile applications emerging as the most effective channels. Contextual ads were found to be 15% more effective during the analyzed period, with in-app ads showing a remarkable 25% increase.
Dynamic Development in MENA E-commerce:
The analysis of collected data suggests that sales during the Christmas-New Year period will contribute to the dynamic development of the e-commerce market in the MENA region. The notable increase in mobile orders emphasizes the ongoing importance for brands to prioritize mobile devices and incorporate relevant information about popular product categories when designing Christmas offers.
In the MENA market, there is a blend of global trends and regional nuances. From December 18, 2022, to January 7, 2023, local sales and GMVs experienced a commendable 15% increase. However, the AOV witnessed a slight decrease from $28.7 to $25.5. On a positive note, mobile orders in MENA increased from 58% to an impressive 65%.
Categories with the Most Significant Sales Growth in MENA:
- Event Tickets & Entertainments: +67%
- Lights & Lighting: +25%
- Games: +22%
- Electronics: +10%
- Fashion: +9%
Most Effective Traffic Sources by Share of Sales:
The driving forces behind successful sales during this festive period include engaging content platforms, strategic contextual ads, enticing affiliate stores, rewarding cashback services, tempting coupons, vibrant social networks, and practical browser extensions. Notably, contextual and targeted ads exhibit a noteworthy 25% boost in effectiveness throughout the winter holidays, while content platforms showcase an even more impressive 30% surge in effectiveness during this joyful season.
In conclusion, the growth in sales during the holiday season in the MENA market underscores a unique blend of cultural nuances and economic factors that contribute to this annual surge. Businesses in the MENA region leverage the holiday season as an opportune time for promotions, discounts, and special offers, encouraging heightened consumer spending. The observed uptick in sales year over year reflects the adaptability and innovation of the industry in catering to the diverse expectations of consumers during this special time of the year.