E-commerce came to a standstill, it received a threat from an unexpected place

By: Trademagazin Date: 2023. 08. 03. 13:12

Domestic e-commerce stagnated in the first half of the year. In addition to the decreasing number of customers, the e-retailers were able to maintain last year’s level by forcedly increasing advertisements and raising prices, but even this was not enough: in the light of the inflation data, the situation actually reflects the decline of the market – Growww Digital’s e-commerce trend report points out[ 1].

While e-retailers struggle to maintain growth, the used market is showing significant growth. In the coming years, the structure of the entire e-commerce market is expected to change, where adaptability and strategic expansion will be the key to survival.

E-commerce stagnated in the first half of the year compared to a year earlier, while the number of purchases decreased by 4-5 percent, which indicates a slowdown in demand. At the same time, paradoxically, after a year and a half, the prices of Google ads (PPC) began to rise in the second quarter.

“The latter is surprising because e-retailers increase their advertising costs when the market is also growing. On the other hand, an increase in advertising costs can be observed. Marketers are paying more and more per click to maintain growth despite falling demand”

– points out László Szabó, managing partner of Growwww Digital.