Fevad e-commerce figures: 2nd quarter 2024

The second quarter of 2024 marks a turning point in the French economic environment, characterized by a notable slowdown in inflation. After a prolonged period of inflationary pressures that affected various sectors of the economy, the first signs of an easing are emerging. This change in economic dynamics is having a significant impact on consumer behavior and, by extension, on the e-commerce sector.

The slowdown in inflation is reflected in a gradual stabilization of prices, offering consumers greater predictability in their spending. This development not only influences households' purchasing power, but also their buying strategies, particularly online.

Key figures

The French e-commerce sector grew by 8.4% in Q2 2024 compared to the same period in 2023. This brings total sales to 42.7 billion euros, an increase of 3.3 billion euros in one year. This growth is unevenly distributed across the different market segments:

• Product sales are accelerating, up 5%.
• The online services sector remains dynamic, with growth of 10.5%.

This disparity underlines the diversification of the e-commerce market and the sector's ability to adapt to changing consumer behavior.

Average shopping basket

The volume of online transactions increased to 625 million in Q2 2024, up 9.3% on the 572 million recorded in Q2 2023. This increase in the number of transactions outstrips the growth in sales, indicating a trend towards more frequent but lower-value purchases.

At the same time, there was a slight decline in the average basket, which stood at 68 euros in Q2 2024, compared with 69 euros in the same period of 2023, a decrease of 1%. This is the first decline in the average basket since Q4 2021. This trend could reflect consumer caution, a diversification of purchases towards less expensive products, or the impact of slowing inflation on prices.

The development of e-commerce

The sector's dynamism is reflected in the growth in the number of active merchant sites. There has been a 9% year-on-year increase, representing some 13,000 new sites compared to Q2 2023.

This increase in the number of sites could help intensify competition in the sector, to the benefit of consumers in terms of choice and price.

E-commerce trends

Growth in product sales

In Q2 2024, online product sales accelerated significantly, growing by 5% compared to the same period in 2023. This increase marks a turning point compared with previous quarters , and can be explained by several factors:

1. Increase in the number of orders: The data show a 10.7% rise in the number of product orders during the quarter, indicating an increased frequency of purchase among consumers.
2. Offer diversification: The increase in the number of e-commerce sites (+9% year-on-year) is helping to broaden the range of products available online, attracting more consumers.
3. E-tailers adapt: Online retailers have probably adjusted their strategies to meet consumers' new expectations against a backdrop of slowing inflation.

Dynamism in the service sector

The online services sector maintains its strong momentum, with growth of 10.5% compared with Q2 2023. This performance is due to :

1. The ongoing digitization of services: more and more traditional services are offered online, expanding the range available to consumers.
2. Changing consumer habits: Consumers are increasingly comfortable using online services, whether for entertainment, education or professional services.
3. The resilience of the services sector: Less affected by inflationary pressures than physical goods, the online services sector has been able to maintain more stable growth.

Sector performance

An analysis of the iCE 100 panel, which brings together a hundred of France's leading e-commerce sites, provides a detailed overview of performance by sector in Q2 2024. Sales of consumer goods (CPG) on the iCE 100 panel rose by 1.2% compared to Q2 2023. This growth, though modest, is significant in the current economic context. Several factors explain this trend:

1. Slowing food inflation: The impact of slowing inflation in the food sector is beginning to be felt, stabilizing prices and potentially encouraging purchases.
2. Consumer adaptation: Households seem to have adjusted their purchasing habits, integrating more FMCG products into their online baskets.
3. E-tailer strategies: Industry players are likely to have initiatives in place to boost online FMCG sales, such as targeted promotions or improved delivery services.

Growth sectors

The beauty sector in particular stood out with growth of 8%, continuing to drive growth in the iCE 100 panel. This performance can be explained by :

1. The increasing digitalization of the sector: beauty brands have invested heavily in their online platforms and digital marketing strategies.
2. Product innovation: The beauty sector is characterized by a constant renewal of its offer, regularly attracting consumers.
3. Pleasure purchases: In an uncertain economic climate, beauty products can be seen as affordable pleasure purchases.

Stabilizing sectors

The fashion-textile and technical products/appliances sectors show a certain resilience, each showing a slight decline of 1% compared to Q2 2023. This relative stabilization can be interpreted as a positive sign, considering the current economic challenges. Explanatory factors:

1. Adapting offerings: These sectors have probably adjusted their product ranges and prices to align with consumer expectations.
2. Promotional strategies: Targeted promotional campaigns helped keep sales close to previous year's levels.
3. Technological renewal: For technical products, the introduction of new technologies can boost sales despite a difficult economic climate.

Sectors in difficulty

The furniture-decoration sector continues to be more affected by consumer trade-offs. This trend can be explained by :

1. Nature of purchases: Furniture and decoration are often considered as deferrable purchases in times of economic uncertainty.
2. Base effect: This sector experienced strong growth during the health crisis, creating a high base effect for current comparisons.
3. Competition from the physical market: With the end of COVID restrictions, consumers may be more inclined to buy these products in-store.

On the other hand, the Travel sector stabilized (0%) after several quarters of strong post-COVID growth. This stabilization indicates a normalization of the online travel market after the initial upturn.

Finally, sales to professionals (B2B) on the iCE B2B panel fell by 1%. This decline reflects the worsening business climate and its impact on corporate investment.