The State of SMB Commerce
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- Darrell Perkins
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1 The State of SMB Commerce Q3 2015
2 TABLE OF CONTENTS 1 QUARTERLY SALES & ORDER VOLUME GROWTH 2 FREE SHIPPING BREAKDOWN 3 SALES BY DAY OF THE WEEK 4 TOP SALES DAYS THROUGHOUT THE QUARTER 5 SALES PER CAPITA INDEX 6 SALES PER CAPITA INDEX BY INDUSTRY 7 INDUSTRY CONTRIBUTION: MARKETPLACES VS. SHOPPING CARTS 8 ABOUT THE DATA The State of SMB Commerce Q Stitch Labs
3 QUARTERLY SALES & ORDER VOLUME GROWTH Q brought effectively no change for retailers compared to the previous quarter, with no change in sales and only 2% increase in order volume. Compared to the same quarter of the previous year, in Q3 2015, retailers experienced a 12% increase in sales and 14% increase in order volume. VS. LAST QUARTER Q vs. Q VS. LAST YEAR Q vs. Q SALES 0% + 12% ORDER VOLUME + 2% + 14% Notes: Growth estimates are based on the median same business quarter over quarter change for businesses with more than 100 orders in each quarter that were customers of Stitch for the duration of both quarters. Orders included were placed during the specified time period. The State of SMB Commerce Q Stitch Labs 1
4 FREE SHIPPING BREAKDOWN The average retailer has 49% of sales and 56% of order volume from orders with free shipping. AVERAGE SALES CONTRIBUTION FROM ORDERS WITH FREE SHIPPING AVERAGE ORDER VOLUME CONTRIBUTION FROM ORDERS WITH FREE SHIPPING 49% 56% Notes: Free shipping is based on orders with no shipping and handling charges. Only customers with at least 100 orders in a given quarter that were customers for the duration of the quarter are included. Percentages are based on the average seen across customers included. The State of SMB Commerce Q Stitch Labs 2
5 SALES BY DAY OF THE WEEK In Q3 2015, days at the beginning of the work week bring in more sales than weekend days. For every $1.00 spent on Saturday, $1.01 was spent on Sunday and $1.87 was spent on Wednesday. $2.00 $1.74 $1.81 $1.87 $1.67 $1.60 $1.50 $1.00 $1.00 $1.01 $0.50 $0.00 MON TUE WED THU FRI SAT SUN Notes: Sales per weekday are calculated as the average amount of sales per weekday throughout the quarter and represented relative to the weekday with the lowest spend. The State of SMB Commerce Q Stitch Labs 3
6 TOP SALES DAYS THROUGHOUT THE QUARTER In Q3 2015, it appears shoppers took a break from shopping to enjoy Independence Day as July 4th was the day with the lowest sales throughout the quarter. Two days after Labor Day, on September 9th, the quarter s sales peaked. Overall, weekends brought in lower sales than weekdays. SUN MON TUES WED THUR FRI SAT JULY AUGUST SEPTEMBER LOWEST SPENDING HIGHEST SPENDING x >= 2.5 Notes: Sales per day are calculated as the total sales for each day throughout the quarter and represented relative to the day with the lowest spend. The State of SMB Commerce Q Stitch Labs 4
7 SALES PER CAPITA INDEX Compared to the average U.S. resident, Oklahoma residents spent the most, followed by states largely on the west coast and in New England. Mississippi residents spent the least, followed by states overall in the midwest and southeast. LEAST SPENDING PER CAPITA MOST SPENDING PER CAPITA x < x > 1.5 Notes: Sales per capita are defined as sales by state divided by the state population as given by the U.S. Census Bureau s State Population Estimates The index represents the state s sales per capita divided by the sales per capita for the entire U.S. Sales are associated to a state based on the order s shipping address. The State of SMB Commerce Q Stitch Labs 5
8 SALES PER CAPITA INDEX BY INDUSTRY These states represent the highest and lowest compared to the U.S. average for each industry. INDUSTRY HIGHEST STATE LOWEST STATE ADULT PRODUCTS Rhode Island 3.0 South Dakota 0.46 AGRICULTURE Arkansas 14.8 Idaho 0.07 APPAREL & ACCESSORIES Oklahoma 9.2 Iowa 0.46 ARTS & CRAFTS Arkansas 1.9 New Mexico 0.31 AUTOMOTIVE Colorado 6.9 Arkansas 0.01 BEAUTY New Hampshire 2.1 Mississippi 0.54 CONSUMER ELECTRONICS Delaware 3.9 West Virginia 0.44 FOOD & BEVERAGE District of Columbia 13.6 Arkansas 0.04 HARDWARE & CONSTRUCTION Montana 27.5 Florida 0.00 HEALTH & PERSONAL CARE Kansas 4.9 Maine 0.21 HOME & FURNITURE District of Columbia 2.4 West Virginia 0.52 SPORTS, TOYS & HOBBY Alaska 5.9 Hawaii 0.39 Notes: Sales per capita are defined as sales for each industry by state divided by the state population as given by the U.S. Census Bureau s State Population Estimates for The index represents the state s industry sales per capita divided by the industry sales per capita for the entire U.S. Sales are associated to a state based on the order s shipping address. Industry is based on the self-reported industry of the retailer. The State of SMB Commerce Q Stitch Labs 6
9 INDUSTRY DISTRIBUTION: MARKETPLACES VS. SHOPPING CARTS Apparel & Accessories is the leading industry on both marketplaces and shopping carts, making up 37% and 53% of sales respectively. Home & Furniture is the second-most popular industry for both categories. MARKETPLACES SHOPPING CARTS APPAREL & ACCESSORIES 37% 53% HOME & FURNITURE 25% 17% CONSUMER ELECTRONICS 14% 7% SPORTS, TOYS & HOBBY 10% BEAUTY 8% 4% OTHER 6% 6% ARTS & CRAFTS 4% ADULT PRODUCTS 9% Notes: Industry is based on the self-reported industry of a retailer. Industries with less than 3% contribution are combined as Other. Marketplaces included are Amazon.com, Amazon.co.uk, Amazon.ca, ebay, Etsy, and Storenvy. Shopping carts included are Shopify, BigCommerce, Magento, and WooCommerce. The State of SMB Commerce Q Stitch Labs 7
10 ABOUT THE DATA Stitch Labs examined over 10 million additional orders for Q from more than 8,000 small and medium sized businesses. Revenue numbers are for all orders converted to USD using market exchange rates at the end of the quarter. ABOUT STITCH LABS Stitch is an online inventory control solution that simplifies multichannel retail business. It automatically syncs inventory, orders and sales across channels, which provides retailers a holistic understanding of their operations. With Stitch, retailers save time, make better decisions, and grow their businesses. Stitch integrates with top sales channels such as Amazon, ebay, Etsy, Shopify, WooCommerce, and Square, as well as addons including Quickbooks, Xero, and ShipStation. To learn more, visit or reach out to our team at press@stitchlabs.com or on Twitter The State of SMB Commerce Q Stitch Labs 8
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