Our latest analysis of ecommerce in the wholesale sector reveals that businesses continue to see significant growth in online revenue.
In 2019, revenue from online orders reached the highest we have seen since our analysis began in 2015. December 2019 was a record-breaking month with the highest revenue figure ever recorded for a single month, this being 15.9% up on December 2018. In addition, online order volumes were up 24% from those recorded in 2018.
Our analysis excludes businesses who have implemented ecommerce over the period, and so represents organic growth. However, with the inclusion of new ecommerce launches, the overall growth of online is significantly higher. We expect to see continued adoption and growth in the sector going forward.
Andy Pratt, Digital Business Development for Oporteo, commented, “These figures clearly demonstrate the financial benefits of ecommerce. We continue to see more investments in online platforms and anticipate that the majority of wholesalers will have ecommerce capabilities in 2020.”
Interestingly, the graph above shows that over the past 24 months, order volumes (the number of orders placed) has been growing at a faster rate than revenue. This illustrates how customers are taking advantage of the convenience of online to raise more orders through the day than rather than single larger orders.
It is clear to see that ecommerce is now a significant source of revenue for wholesalers. However, as more businesses implement modern online platforms, with higher levels of convenience and usability for customers, the competition in the market will intensify.
“As a result we expect the trend of investment in online to increase as the channel becomes more established and important to compete” concludes Andy.