E-commerce industry sales growth slows Q1 2024 –Report

*e-Commerce sales firms disclose they have recorded gross sales growing 12 percent to 15 percent by value in the First Quarter (Q1) of 2024, in comparison to a year ago, indicates market research data

Isola Moses | ConsumerConnect

Electronic Commerce (e-Commerce) companies have witnessed a notable dip in gross sales by value thus far in Year 2024.

ConsumerConnect learnt on in terms of e-Commerce sales, firms recorded gross sales growing 12 percent to 15 percent by value in the first three months of this year, compared to a year ago, market research data showed.

This was slower than the 20% year-on-year growth seen in the First Quarter (Q1) of 2023.

As regards critical volume growth in the First Quarter of this year, ETtech report noted a decline was indicative of softer demand as order volumes shrank, even as the uptake of expensive items helped keep up overall sales.

However, it is noted the month-on-month sales are improving, fuelling hope that with the onset of summer, increased demand for certain categories could boost full-year sales figures.

Satish Meena, Adviser at Datum Intelligence, said: “Though this January was bad, we have seen growth return over the last three weeks, and we will likely see an about 20% growth rate return by April.”

Beauty and personal care, for instance, saw strong sales during January and February 2024, helped in part by winter sales and increased gifting around Valentine’s day.

Health and fitness, which usually does not see a huge jump in sales during the festive period, recorded an increase in sales pushed by a post-festive drive towards health-focused activity, according to report.

Pallav Bihani, Founder of health-focused supplements and equipment maker Boldfit, also stated: “We see another spike in April to June, as a younger, health-conscious base gets their summer breaks.”

Report further showed that brands continued to grow, as the new-age beauty and personal care brands likely grew over 25 percent, while the health and fitness category likely grew between 15 and 20 percent during the period under consideration.

Likewise, home furnishing products also performed better than expected with between 15 and 18 percent growth.

Meanwhile, in regard to post-festive slump, a cross-section of sellers and brand executives opined the market was recovering from a slump after bumper festive season sales in the final quarter of 2023.

The clearance of fashion and peripheral inventory and the lack of major smartphone launches also weighed on sales, they stated.

Besides, the spike in inflation also played a key role in the dipping curve for online retail.