Online spending patterns shift in July
E-commerce shoppers started changing their shopping behavior in July 2024.
According to the latest Signifyd E-commerce Pulse data for July 2024, online spending continued the growth trend seen in June, but shifted toward lower-cost items and alternatives as the fastest year-over-year growth (17.7%) was in orders under $100. Meanwhile, purchases above $500 were nearly flat with 1.5% year-over-year growth.
Overall online spending was up 10% year-over-year, and the number of e-commerce orders increased 15% but average order value was down 4% compared to July 2023, which Signifyd said signals caution among consumers.
Looking at online shopping trends in traditional back-to-school categories, Signifyd found that apparel spending was up 12% over a year ago, while electronics remained flat and home goods spending dropped 8%.
Discounts also played a role in back-to-school shopping, according to Signifyd analysis. The average applied discount in the electronics category was 12%. Fashion shoppers received an average discount of 22%, about the same as in 2023. Home goods discounts averaged nearly 29%, or 3% higher than a year ago, but those deals failed to push home goods spending higher than the previous July.
The average discount for all transactions across Signifyd’s entire network of thousands of retailers was 23.5% — a 3% increase from average discounts applied in July 2023.
| Ecommerce sales July 2024 vs. July 2023 | |
| Grocery | +27% |
| Fashion & apparel | +12% |
| Leisure & outdoor | +5% |
| Luxury goods | +1% |
| Electronics | 0% |
| Auto parts | -1% |
| Home goods | -8% |
| Beauty & cosmetics | -9% |
| All verticals | +10% |
Grocery spending rose while beauty and cosmetics spending fell
Other verticals that saw notable annual sales fluctuations in July include grocery, leisure and outdoor, and luxury goods. Grocery spending continued a trend that started in spring 2023, increasing 27% annually and driven by volume rather than price increases. Auto parts and beauty and cosmetics were in negative territory year-over-year, down 1% and 9%, respectively.
[READ MORE: July online grocery sales rise, led by delivery]
"What we saw in July was not surprising given recent macroeconomic trends," Signifyd CEO Raj Ramanand said. "Online retail remains healthy, but clearly economic uncertainty and the decline in surplus savings are weighing on consumers. We’ve entered an era during which merchants need to focus on profitable growth rather than growth at any cost. This is the time for brands to develop lasting customer value by doubling down on the long-term relationships they build with the customers they serve."
Signifyd’s Ecommerce Pulse data is derived from transactions on Signifyd’s Commerce Network of thousands of e-commerce retailers and brands.
