About
Information is our nourishment. Say hello to the data gods.
Meet Our Team
Consumers speak. We listen, analyze, and dig deep. You win!
Learn More
Solutions
Get targeted insights into industry trends with our quarterly sector reports, so you can predict the future and stay a step ahead.
Learn More
Receive alerts and reports to power your fund management. Partner with our team of analysts to take your research to the next level.
Learn More
Plug our consumer-demand-data directly into your client-facing software, tools, and platform or work with us to create custom, high-value content your customers will love.
Learn More
Testing our data is like jumping in a time machine to compare market gains and losses against reliable and annotated historical data.
Learn More
Track specific tickers, receive alerts, and watch sector-specific trends. Drill down on individual stocks and see where consumer sentiment aligned with gains and losses in trading.
Learn More
Who We Serve
LikeFolio is your real-time focus group keeping you connected to consumers and giving you a critical edge over your competition.
Learn More
LikeFolio is your research secret weapon to sniff out game-changing shifts in the market before they happen.
Learn More
LikeFolio is source of quantitative data based upon real consumer insights to power your investment engine.
Learn More
LikeFolio is your content pipeline positioning your tool as an indispensable resource to your customers.
Learn More
LikeFolio has partnered with Tradesmith to build Derby City Insights and bring our powerful insights engine to private investors.
Learn More

Inflation Hit Ecommerce Shoppers Are Focused on the “Value Option”

The eCommerce sector found an extra gear during the pandemic.

That new gear saw companies like Amazon, Alibaba, and Wayfair flourish. Below you can see a chart of the top 10 eCommerce companies by revenue in 2020…

Amazon’s net profit jumped 84.1% YoY, while Wayfair’s grew 118.8%.

We can see the massive uptick in eCommerce customers via our data on consumer mentions of completing transactions online.

Between March and June 2020, there was a massive jump.

Ecommerce sales grew by $244.2 billion or 43% in 2020, rising from $571.2 billion in 2019 to $815.4 billion in 2020.

But now, as LikeFolio data shows, the eCommerce trend is approaching pre-pandemic levels.

Purchase Intent for Amazon, Wayfair, and Etsy are all decelerating.

However, there is one area of eCommerce that is experiencing growth.

Resale websites.

We are seeing an acceleration in PI growth for commerce sites where users can buy and sell new and used clothing.

But, the traditional and probably best-known resale site, eBay, is lagging.

Poshmark, TheRealReal, and Thredup are outpacing eBay and larger eCommerce peers when it comes to Purchase Intent growth over the last quarter.

It may be that current inflationary pressures are forcing consumers to look for high-quality goods at a lower price.

ThredUp, which is leading the pack, is an online thrift store where you can buy and sell second-hand clothes. The company states on its site that consumers can find their favorite brands at up to 90% off.PI mentions for TDUP have remained elevated for a considerable period.

There was a risk, following the pandemic that demand would decline.

But that isn’t the case, with TDUP’s PI on course to jump +10% QoQ in the current quarter. YoY, it is on track to close -1%.

Meanwhile, Consumer Buzz is trending +8% QoQ and +7% YoY.

The company reported a record of 1.7 million Active Buyers in Q1 and Orders of 1.6 million, representing growth of 33% and 45% year-over-year, respectively.

Maybe it's not the eCommerce sector that is decelerating, but eCommerce sites with pricier items?

It's something The RealReal’s founder and CEO Julie Wainwright touched on in the company’s Q1 earnings release Tuesday, May 10th…

“We continue to see strong demand in our business despite recent geopolitical events and uncertainty surrounding macroeconomic trends,” stated Wainwright.

“In fact, as inflation has ramped and prices have increased in the primary (i.e., new goods) luxury market, we believe The RealReal is a demonstrated value option offering unique and highly coveted items in our online marketplace,” she added.

On current evidence, Wainwright is correct. The inflation headwind is fueling growth in resale sites as consumers hunt for luxury goods at discount prices.

Whether that will continue as inflation remains near 40-year highs, is another question.


Related Posts

Divergence Opportunities

When social-data and stock price are moving sharply in opposite […]

Read More
Roku Earnings: What LikeFolio Data Is Telling Us

Roku makes streaming devices that allow its customers to stream […]

Read More
The Big Personalization Movement Taking Over Tech

Call it narcissism, or call it knowing exactly what you […]

Read More
1 2 3 8

Related Posts

Related Reports

KEEP YOUR COMPETITIVE EDGE

Get FREE insights in your inbox every week with the Daily Drop.

About LikeFolio

LikeFolio analyzes social media data to accurately predict shifts in consumer behavior. We sell data and insights to professional investors, corporate research teams, and software providers.

Partner Sites

©2022 LikeFolio. All Rights Reserved.
Privacy Policy
|
Terms of Use
LikeFolio userslaptop-phonepie-chartchart-barsselect