The analysis is based on data from active online stores in both 2023 and the first half of 2022.
Romanians’ appetite for online shopping as a quick, convenient, and secure way to make purchases across all categories continues to thrive in 2023. Furthermore, as Romanians continue to spend a lot of time at home, either working remotely or enjoying moments of relaxation in the comfort of their own homes, the demand for Home&Deco products has significantly increased in the first six months of 2023.
According to MerchantPro data, Home&Deco was the most dynamic market segment in the first half of 2023, with a remarkable increase of over 30% in the number of orders placed. However, for the first time in the last three years, the Fashion segment saw a slight contraction, with a -5% decrease in the number of transactions.
“The digitalization of consumer habits is becoming increasingly obvious, even in segments associated with traditional commerce. Home&Deco is a good example. Over the past years, online transactions in this category have been consistently growing. With just 2-3 clicks, consumers can explore various brands, decor options, compare prices, read reviews, all without the need to physically visit stores. Essentially, eCommerce has made the process of purchasing home and decoration products easy, accessible, practical, and fast. And in this context, the notable difference lies in the consumer’s experience on the website – solutions optimized according to the consumer’s needs, from fast loading times and product presentations to payment and return options,” said Arthur Radulescu, CEO of MerchantPro.
The average order value has shown discreet dynamics, increasing by just EUR1, from EUR50 in the first six months of the previous year to EUR51 in the first half of 2023.
The upward trend that started at the beginning of 2022, abruptly interrupted by the conflict in Ukraine last spring, resumed during the summer and continued until the beginning of 2023. In January 2023, there were nearly 15% more orders compared to January 2022. However, following the pressure generated by inflation and the anticipated global recession, the growth slowed down, even stagnating in April 2023 compared to April 2022.
In the first half of 2023, the peak in the number of orders and transaction values was seen in May.
During the January-June 2023 period, the number of orders for sports articles remained stable (+6%), while the IT&C segment saw a significant increase of 32% compared to the first six months of 2022.
The Fashion segment saw a slight decrease in the number of orders (-5%), but the average order value has slightly increased from EUR32 to EUR34.
“Online merchants need to adapt to a more cautious purchasing behaviour and intense competition. The battle for customers’ attention and budget is fierce and, in my opinion, a test of endurance. Entrepreneurs who build their businesses for the long run have much to gain. The most adept ones are focusing on improving the website visitors’ experience, which has become more crucial than ever. The impact of a well-optimized website, with fast loading speeds, is immediately evident in conversion rates and sales, regardless of the domain, and in the long run, it leads to customer retention and loyalty. Significant investments are being made in automation, including the integration and adoption of artificial intelligence solutions, as well as enhancing store performance from the visitors’ standpoint, at the storefront level”, stated Arthur Radulescu.