The Coronavirus pandemic’s impact on the global economy is well documented - Global GDP growth is -4.4%. Unemployment rates have exploded, and consumer confidence has fallen off a cliff. But for e-commerce entrepreneurs, it’s been a different story. As most of the world began strict stay-at-home measures, consumer purchasing behaviour shifted online in record numbers.
According to the latest report from Clearbanc, one of the world’s largest e-commerce investors, there is much that we can learn from this year’s Black Friday.
Clearbanc analysed data from more than 20,000 companies on the Clearbanc platform and reveals what a unique year this has been for ecommerce founders amidst shutdowns around the world.
“It’s been a tough year for everyone, but e-commerce has been a standout of 2020 where the revenues of companies on Clearbanc’s platform grew 55% on average and small businesses saw a 150% spike in business over Black Friday alone,” explains Clearbanc President and Co-Founder, Michele Romanow. “We’ll go back to a more normal life soon, but consumer behaviour has changed forever and we’ll look back on the COVID pandemic as a pivotal moment for the retail industry and a life changing year for founders riding the e-commerce wave.”
Acording to the study, Facebook spend YTD is down 8.94% compared to 2019, which seems small considering the economy is struggling, but Google spend 2020 YTD is up 53.25% compared to 2019.
Small online businesses (£0-38K/month) are the biggest winners coming out of Black Friday, seeing 150% growth in revenues over the weekend, compared to 20% for companies making £225K or higher per month.
In a tough year, e-commerce is one of the few success stories — Clearbanc’s vendors saw revenues grow by 52% from March to April when lockdowns went into effect (that’s 88% higher than April of 2019).
The top product categories on Clearbanc’s platform tell a very 2020 story: Medical Equipment & Supplies (+252.53% ), Hobbies & Collectibles (+212%), and cannabis-related goods (+105%).
Read the full Black Friday and ecommerce in 2020 report, here