The last few months have not been so rosy
for ecommerce in the UK. During the holiday months, the online retail industry
actually suffered – it experienced the worst November since 2011. According to
the most recent IMRG Capgemini e-Retail Sales Index, sales increased just 8.1
percent year-on-year in November.
Overall, the growth of ecommerce in the UK
fell below the three-, six- and twelve-month sales growth averages in November.
Meanwhile, the industry suffered its all-time lowest growth over Black Friday
week. The reason? Experts are blaming the lack of growth on heavy discounting.
Andy Mulcahy of IMRG dove into greater
detail, explaining, “Black Friday was underwhelming from a revenue perspective
this year and there are multiple reasons why shopper spend may not have
responded as well as may have been expected.”
He went on to say that “There is economic
and political stability potentially impacting shopper confidence, plus the
possibility that people might be becoming fatigued with the event – a factor
compounded by negative stories released in the run-up.”
Long before Black Friday, there was heavy
discounting going on. Experts say that, despite high conversion where all weeks
saw an increase in orders, there was a drop in average basket value.
Ultimately, this impacted sales growth. This suggests that extended promotions
had an unexpected and significant impact on revenue at the end of 2018, during
a period (holiday season) that usually sees great growth.
“It’s a very complicated story this year,
but the duration and depth of discounting rates are likely to be very
significant,” Mulcahy confirmed.
Account Providers UK
Disappointed with the outcome of November,
many merchants will be looking for ways to improve sales. One of the easiest
and straightforward ways to do so is to consider your merchant account. Could
you be offering customers a more convenient way of making their payment? Could
you provide more payment options?
If so, consider the many reviews and
helpful information Best Payment Providers has to offer. Find everything you
need on merchant account
providers UK, so you can choose the best merchant account for your
business’ unique needs. Make sure your customer are provided with a seamless
customer experience to keep them coming back to your business this year.Author Bio:Payment industry expert Taylor Cole is a
passionate merchant account expert who understands the complicated world of
accepting credit and debit cards at your business. His understanding of the
industry and merchant account providers UK has helped thousands of business
owners save money and time.