Lockdown:
Sales Up
Comparing the impact of global lockdowns and Black Friday/Cyber Monday in 2020
BFCM 2020
Heading into the BFCM sales weekend, e-commerce merchants urged
consumers around the world to shop small and shop local, in an
effort to combat a second wave of lockdowns and retail-closures.
And the world listened.
While revenue growth was seen by companies of all sizes, our data suggests that small businesses grew their revenues by over 100% compared to BFCM 2019.
Small companies, with revenues under $50k per month, consistantly grew at a higher rate than mid-market ($50-300k) and large businesses ($300K+) over the 4 day sales period.
E-commerce in 2020
E-commerce vendors connected to Clearco saw revenues grow by
52.13% from March to April, 86.34% higher than April of
2019.
This shift in consumer spending began with much of the worlds
transition into lockdowns, and has sustained throughout the rest
of 2020. Monthly revenues have grown by an average of
54.34% compared to 2019, with total revenues up
55.31% YTD.
Advertising in 2020
Whilst a majority of Clearco Capital spent on ads went to
Facebook, 2020 saw some dramatic changes in the advertising
landscape.
Coinciding with the widespread lockdowns of April & May, Facebook
and Google ad spend grew by 24% and
63% YoY. However the biggest change of the year
began with the Facebook boycotts of July.
Clearco customers would spend an average of
28.54% less on Facebook ads over the next 4
months, and increased their monthly Google ads spend by as much as
112.69%.
Categories in 2020
While the bulk of consumer purchases fell in “the big 3” categories (Apparel, Home Goods, and Health and Wellness), the most significant changes tell a much more “2020” story.
As the world scrambled to purchase masks and thermometers,
companies in the Medical Supplies category saw revenues grow by
253% YTD. We saw a similar uptick in the
Collectibles category (think baseball cards and knick-knacks) and
cannabis-related accessories, which grew by over
100% YTD.
These categories, while growing at a pace well-above average,
still represent a small percentage of total e-commerce activity.
Travel goods and Events companies were the biggest losses of 2020, with revenues declining by 33.6% and 50.1%.
These categories’ decline is mapped perfectly to the pandemic; Travel goods rapidly decline over Q1 as the governments around the world instated lockdowns. The events category has steadily declined as the year progressed, and the industry struggles to adapt to a socially distant model.
This report analyzes the performance for a cohort of Clearco
users who have remained active from 01/2019 - 12/2020. This
information was up to date as of 01/12/2020.
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